PENGARUH LIKUIDITAS DAN AKTIVA PRODUKTIF TERHADAP PROFITABILITAS STUDI KASUS PADA BANK-BANK PERKREDITAN RAKYAT DI PROVINSI SULAWESI UTARA

Abstract

Profitability is a measurement of the level of profit obtained by a bank through operational activities and management of assets owned. The profit of a bank can be assessed through the ratios reported in the financial statements. This study aimed to analyze the influence of liquidity and productive assets on the profitability of Bank Perekonomian Rakyat in North Sulawesi Province, with exogenous variables consisting of liquidity variable, measured by the Loan to Deposit Ratio (LDR) and cash ratio indicators, and productive assets variable, measured by the Non Performing Loan (NPL) and Allowance for Productive Asset Write-Offs (PPAP) indicators while the endogenous variable consisting of profitability as measured by the Return on Assets (ROA) indicator. This study used a multivariate research method of Partial Least Squares Structural Equation Modeling (PLS-SEM) and Smart-pls software by using secondary data of ratios and time series. The population of the study was 18 Bank Perekonomian Rakyat in North Sulawesi Province. The sampling method was purposive sampling with a sample of 64 that met the specified criteria. The results showed that Liquidity had a significant influence on Profitability, Productive Assets had a significant influence on Profitability, and simultaneously, Liquidity and Productive Assets had a significant influence on Profitability.