Krismi Budi Sienatra


Bank performance is determined by many factors such as internal and external factors. This study aims to investigate the determinants of banking performance in Indonesia. By using samples from banks at the Indonesia Stock Exchange during the period 2013-2016 with a total of 32 banks. Internal factor variables used in this study include company size, capital ratios, deposit ratios, loan ratios, and non-performing loan ratios and banking performance using proxy return on assets and return on equity. The results of the study using linear regression analysis shows the results of the firm size ratio, capital ratio and non-performing loan ratio have an influence on profitability while the deposit ratio and lending ratio do not have an influence on bank performance either return on assets or return on equity.


bank, profitability, credit risk, capital

Full Text:



Al Omar., H., and Al Mutairi., A., (2008),"BankSpecific Determinants of Profitability: The case of Kuwait", Journal of Economic and Administrative Sciences, Vol. 24 No 2 pp. 20 – 34

Athanasoglou, P.P., Delis, S.N. and Staikouras, C.K. (2006),“Determinants of bank profitability in the South Eastern European Region”, Mediterranean Journal of Social Sciences, Vol. 2 No. 1, pp. 58-78.

Athanasoglou, P.P., Brissimis, S.N. and Delis, M.D. (2008), “Bank-specific, industryspecific and macroeconomic determinants of bank profitability”, Journal of International Financial Markets, Institutions and Money, Vol. 18 No. 2, pp. 121-136.

Barth, J.R., Caprio, G. Jr. and Levine, R. (2004), “Bank regulation and supervision: what works best?”, Journal of Financial Intermediation, Vol. 13 No. 2, pp. 205-

Barth, J.R., Nolle, D.E., Phumiwasana, T. and Yago, G. (2003), “A cross-country analysis of the bank supervisory framework and bank performance”, Financial Markets, Institutions & Instruments, Vol. 12 No. 2, pp. 67-120.

Bashir, A.H. (2003), “Determinants of profitability in Islamic Banks: some evidence from the middle east”, Islamic Economic Studies, Vol. 11 No. 1, pp. 3157.

Bertin. J.M., Moya. J.A., and Perales., A.R, (2014)," Determinants of bank performance: evidence for Latin America ", Academia Revista Latinoamericana de Administración, Vol. 27 Iss 2 pp. 164 – 182

Bikker, J. and Hu, H. (2002), “Cyclical patterns in profits, provisioning and lending of banks and procyclicality of the New Basel

Capital Requirements”, BNL Quarterly Review, Vol. 221 No. 1, pp. 143-175.

Bourke, P. (1989), “Concentration and other determinants of bank profitability in Europe, North America and Australia”, Journal of Banking and Finance, Vol. 13 No. 1, pp. 65-79.

Cooper, M., Jackson, W. and Patterson, G. (2003), “Evidence of predictability in the cross-section of bank stock returns”, Journal of Banking and Finance, Vol. 27 No. 5, pp. 817-850.

Garcia., M.T.M. and Guerreiro. (2016),"Internal and external determinants of banks’ profitability: The Portuguese case", Journal of Economic Studies, Vol. 43 Iss 1 pp. 90-107

Laryea, E., Matthew Ntow-Gyamfi., Alu A. A., (2016)," Nonperforming loans and bank profitability: evidence from an emerging market ", African Journal of Economic and Management Studies, Vol. 7 Iss 4 pp. 462 - 481 150828/231223/Ekonomi-Melemah-BeginiKondisi-Perbankan-Indonesia diakses indonesia/Pages/Statistik-Perbankan-Indonesia--Oktober-2016.aspx

Menicucci, E. and Paolucci, G. (2016),"The determinants of bank profitability: empirical evidence from European banking sector ", Journal of Financial Reporting and Accounting, Vol. 14 Iss 1 pp. 86 – 115

Molyneux, P. and Thorton, J. (1992), “Determinants of European bank profitability: a note”, Journal of Banking and Finance, Vol. 16 No. 6, pp. 11731178.

Pasiouras, F. and Kosmidou, K. (2007), “Factors influencing the profitability of domestic and foreign banks in the European Union”, Research in International Business and Finance, Vol. 21 No. 2, pp. 222-237

Saeed, M.S. (2014), “Bank-related, industryrelated and macroeconomic factors affecting bank profitability: a case of the United Kingdom”, Research Journal of Finance and Accounting, Vol. 5 No. 2, pp. 42-50.

Short, B.K. (1979), “The relation between commercial bank profit rates and banking concentration in Canada, Western Europe and Japan”, Journal of Banking and Finance, Vol. 3 No. 3, pp. 209-219.

Staikouras, C.K., Mamatzakis, E. and Koutsomanoli-Filippaki, A. (2008), “An

empirical investigation of operating performance in the new European banking landscape”, Global Finance Journal, Vol. 19 No. 1, pp. 32-45.

Sufian., F. and Noor. (2012). Determinants of Bank Performance in a Developing Economy: Does Bank Origins Matter?. Global Business Review. Vol, 13 No, 1., pp 1–23

Sufian, F. and Habibullah, M.S. (2009), “Bank specific and macroeconomic determinants of bank profitability: empirical evidence from the China banking sector”, Frontiers of Economics in China, Vol. 4 No. 2, pp. 274-291.



  • There are currently no refbacks.

Copyright (c) 2020 Business Management Journal

Lantai 3, Ruang Akademik Program Studi Manajemen - Universitas Bunda Mulia
Jl. Lodan Raya No. 2, Ancol – Jakarta Utara 14430, Indonesia
Telp: +62 21 692 9090 ext.1364