THE EFFECT OF THIRD-PARTY FUNDS, CAPITAL ADEQUACY RATIO, OPERATING COSTS, OPERATING INCOME, AND NON-PERFORMING LOANS ON PROFITABILITY WITH FIRM SIZE AS A MODERATION VARIABLE IN THE BANKING SUB-SECTOR FOR THE 2019-2023 PERIOD

Abstract

This research aims to determine and analyze the influence of third-party funds, capital adequacy ratio, operating expenses to operating income, and nonperforming loans on profitability with firm size as a moderating variable on the banking sub-sector for the 2019-2023 period. Secondary data is used in this quantitative research. This research uses a quantitative research method. The population of this study was 47 companies with the sample used being 10 companies included in the banking sub-sector. The sampling technique used a purposive sampling. The analysis techniques used are descriptive statistical tests,
classical assumption tests, multiple linear regression analysis tests, t-statistical tests, coefficient of determination tests, and Moderate Regression Analysis (MRA). Based on the results of this research, show that third-party funds have a positive effect on profitability, capital adequacy ratio have a positive effect on profitability. In contrast, operating expenses to operating income do not affect profitability, and non-performing loans do not affect profitability. Meanwhile, firm size can moderate the influence of the capital adequacy ratio on profitability. However, the firm size variable cannot moderate the variables of third-party funds, operating expenses to operating income, and non-performing loans.