The Effect of Capital Adequacy Ratio (CAR), Operational Expenses on Operating Income (OEOI), Loan Deposit Ratio (LDR), and Non-Performing Loan (NPL) on Return on Asset (ROA) with Net Interest Margin (NIM) as an Intervening Variable on SOEs Bank 2014-2022

This research aims to determine whether the Capital Adequacy Ratio, Operational Expenses on Operating Income, Loan Deposit Ratio, and Non-Performing Loans affect Return On Assets. Apart from that, this research also aims to find out whether Net Interest Margin can be used as an intervening variable for the influence of Capital Adequacy Ratio, Operational Expenses on Operational Income, Loan Deposit Ratio, Non-Performing Loans on Return on Assets in State-Owned Bank Companies in 2014-2022. The research design carried out was causal associative research using a quantitative approach. The population used in this research is state-owned bank companies during the 2014-2022 period, and a purposive sampling technique was used. The data analysis techniques used are multiple linear regression analysis and interaction tests carried out with the help of SPSS software. The results found in this research indicate that partial NPL has a negative and significant effect on NIM. CAR has a significant positive effect on NIM. OEOI and LDR do not affect NIM. Then, CAR and OEOI have a significant negative effect on ROA. LDR has a significant positive effect on ROA. NPL does not affect ROA. Meanwhile, the results of testing the intervening variables show that the Net Interest Margin is unable to moderate the influence of the Capital Adequacy Ratio, Operational Expenses on Operational Income, Loan Deposit Ratio, and Non-Performing Loans on Return on Assets at State-Owned Banks in 2014-2022. Keywords: CAR, OEOI, LDR, NPL, NIM, and ROA