DETERMINING FACTORS OF DIGITAL BANKING PROFITABILITY IN INDONESIA: CASE STUDY OF BANK JAGO TBK
Keywords:
Digital Banking, Profitability, Loan to Deposit Ratio (LDR), Non-Performing Loan (NPL), Capital Adequacy Ratio (CAR), Net Interest Margin (NIM), Structural Equation Modeling (SEM), PT Bank Jago Tbk, SME Financing, and Income Diversification
Abstract
The digital banking sector in Indonesia has experienced rapid growth, especially after the COVID-19 pandemic that accelerated the adoption of digital financial services. This study focuses on PT Bank Jago Tbk, a pioneer in digital banking, to examine the main determinants of profitability as measured by Return on Assets (ROA), with Loan to Deposit Ratio (LDR), Non-Performing Loan (NPL), and Capital Adequacy Ratio (CAR) as independent variables, with Net Interest Margin (NIM) as a mediating variable. Data analysis was conducted using Structural Equation Modeling - Partial Least Squares (SEM-PLS) based on financial data from 2018 to 2023. The results show a positive relationship between LDR and ROA, highlighting the importance of effective lending in increasing profitability. NPL shows a negative impact on ROA, emphasizing the importance of strong credit risk management to mitigate non-performing loans. Interestingly, CAR shows a complex indirect relationship with ROA, underscoring the need for efficient capital utilization to balance risk absorption and revenue generation. In addition, NIM significantly mediates the impact of these factors on ROA, underscoring its important role in optimizing bank profitability. This study provides actionable insights for PT Bank Jago Tbk to improve its financial performance by optimizing LDR, reducing NPL, and managing CAR efficiently. Recommendations include targeting the SME sector, implementing advanced credit scoring technology, and diversifying revenue streams beyond interest-based income. This study highlights the dynamic interactions of these variables, offering strategic direction for digital banks looking to thrive in a competitive market.
References
Adhista, Setyarini. (2020). Analisis Pengaruh Capital Adeuacy Ratio, Net Profit Loan, Net Interets Margin, Beban Operasional Pendapatan Operasional, Loan to Deposit Ratio, Terhadap Return on Assets (Studi pada Bank Pembangunan Daerah di Indonesia periode 201- 2018). Research Fair Unisri 2019, Vol.4 No.1 Januari 2020.
Afriyeni, A., & Fernos, J. (2018). Analisis faktor-faktor penentu kinerja profitabilitas bank perkreditan rakyat (BPR) konvensional di Sumatera Barat. Jurnal Benefita, 3(3), 325. https://doi.org/10.22216/jbe.v3i3.3623
Ambarawati, I. G. A. D., & Abundanti, N. (2018). Pengaruh capital adequacy ratio, non-performing loan, loan to deposit ratio terhadap return on asset. E-Jurnal Manajemen Universitas Udayana, 7(5), 2410. https://doi.org/10.24843/ejmunud.2018.v07.i05.p04
Anindiansyah, Sudiyatno, G., Puspitasari, B., & Elen, Y. (2020). Pengaruh CAR, NPL, BOPO, dan LDR terhadap ROA dengan NIM sebagai variabel intervening (Studi pada bank yang go publik di Bursa Efek Indonesia periode tahun 2015–2018). Proceeding SENDIU 2020, 560–567.
Arsyad, M., & Djoko, S. (2019). The effect of NPL, CAR, NIM, LDR, and DER on the bank’s performance on return on asset: Case study on conventional banking listed on the IDX for the period 2013–2017. Undergraduate Thesis, Fakultas Ekonomika dan Bisnis Universitas Diponegoro. http://eprints.undip.ac.id/72848/1/08_ARSYAD.pdf
Ascarya, A., & Yumanita, D. (2009). Comparing the efficiency of Islamic banks in Malaysia and Indonesia. Buletin Ekonomi Moneter dan Perbankan, 11(2), 95. https://doi.org/10.21098/bemp.v11i2.237
Astohar, A., Rahmadhani, S., & Nurlita, D. (2019). Faktor yang Berpengaruh terhadap Profitabilitas dengan Net Interest Margin sebagai Variabel Intervening pada Bank Perkreditan Rakyat di Indonesia. Among Makarti,12(2), 70–89. http://dx.doi.org/10.52353/ama.v12i2.184.
Bank Indonesia. (2011). Surat Edaran Bank Indonesia Nomor 13/24/DPNP/2011. Tentang Penilaian Tingkat Kesehatan Bank Umum. Jakarta.
Bernardin, D. E. (2016). Pengaruh CAR dan LDR terhadap return on asset. Ecodemica, 4(2). http://ejournal.bsi.ac.id/ejurnal/index.php/ecodemica
Budiwati, H. (2020). Bank funds management and its effects on net interest. International Journal of Accounting and Management Research, 1(1), 38–45.
Chin, W. W. (1998). The partial least squares approach for structural equation modeling. In G. A. Marcoulides (Ed.), Modern Methods for Business Research (pp. 295–336). Lawrence Erlbaum Associates.
Ekinci, R., & Poyraz, G. (2019). The effect of credit risk on financial performance of deposit banks in Turkey. Procedia Computer Science, 164, 979–987. https://doi.org/10.1016/j.procs.2019.09.139
Farhanditya, F. D., & Mawardi, W. (2021). Pengaruh BOPO, NPL, dan LDR terhadap return on asset dengan net interest margin sebagai variabel intervening (Studi pada bank umum go public yang terdaftar di BEI periode 2015–2019). Diponegoro Journal of Management, 10(3).
Ferly, M. M., Rinofah, R., & Kusumawardhani, R. (2023). Analisis pengaruh CAR dan BOPO terhadap ROA dengan NIM sebagai variabel intervening pada PT. Bank Pembangunan Daerah Kalimantan periode tahun 2011–2021. EKOMBIS REVIEW: Jurnal Ilmiah Ekonomi dan Bisnis, 11(2), 1207–1220.
Gesang, P., Budiman, D., Hayman, A., & Maulana, T. (2014). The determinant of commercial banks' interest margin in Indonesia: An analysis of fixed effect panel regression. International Journal of Economics and Financial Issues, 4(2), 295–303.
Ghozali, I., & Latan, H. (2012). Partial least squares: Konsep, teknik dan aplikasi menggunakan program SmartPLS 2.0 M3. Universitas Diponegoro.
Ghozali, I. (2018). Aplikasi analisis multivariate dengan program IBM SPSS 25. Badan Penerbit Universitas Diponegoro.
Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2017). A primer on partial least squares structural equation modeling (PLS-SEM) (2nd ed.). SAGE Publications.
Harun, U. (2016). The influence of financial ratios CAR, LDR, NIM, BOPO, NPL to ROA. Jurnal Riset Bisnis dan Manajemen, 4(1), 67–82. https://ejournal.unsrat.ac.id/index.php/jrbm/article/view/12352
Hardiyanti, W., Febriatmoko, B., Wulandari, S. (2016). Effect of LDR and BOPO on ROA with NIM as the intervening variable: Studies on commercial banks in Indonesia for the period 2011 – 2013). Dinamika Akuntansi, Keuangan dan Perbankan. 5(2). 155–166. https://www.unisbank.ac.id/ojs/index.php/fe9/ issue/view/335
Jima, M. D. (2017). Determinants of net interest margin in the Ethiopian banking industry. Journal of Finance and Economics, 5(3), 96–105. https://doi.org/10.12691/jfe-5-3-2
Kasmir. (2000). Manajemen perbankan. Raja Grafindo Persada.
Kasmir. (2014). Bank dan lembaga keuangan lainnya. Raja Grafindo Persada.
Kasmir. (2017). Analisis laporan keuangan. PT Raja Grafindo Persada.
Kasmir. (2019). Analisis laporan keuangan. Raja Grafindo Persada.
Latumaerissa, J. (2014). Manajemen bank umum. Mitra Wacana Media.
Lohano, K., & Kashif, M. (2019). Factors affecting the profitability of banks in developing countries. NUML International Journal of Business & Management, 14(2), 2410–5392.
Matindas, A. M., Pangemanan, S. S., & Saerang, D. P. E. (2015). Pengaruh capital adequacy ratio (CAR), BOPO dan non-performing loan (NPL) terhadap kinerja keuangan perbankan di Indonesia. Jurnal Riset Akuntansi, 10(1). https://doi.org/10.32400/gc.10.1.7367.2015
Muhammad Raditya Rahagi, Najmudin Najmudin, & Rio Dhani Laksana. (2023). The Effect of Net Interest Margin as a Mediator and Selected Factors in Determining the Profitability of Digital Banks. Jurnal Riset Manajemen, 1(1), 10–27. https://doi.org/10.54066/jurma.v1i1.96
Nasserinia, A., & Shamsabadi, F. (2015). Key determinants of German banking sector performance. Pertanika Journal of Social Sciences & Humanities, 23(2), 167–186.
Peraturan Bank Indonesia No. 3/22/PBI/2001. Tentang Transparansi Kondisi Keuangan Bank. Jakarta
Peraturan Bank Indonesia No. 13/01/PBI/2011. Penilaian Tingkat Kesehatan Bank Umum. Jakarta
Pranowo, T., Haris, A., Budianto, E., & Mardiyani, M. (2020). Effect of CAR, LDR, NPL, and NIM on ROA in foreign exchange public and private banks registered on the IDX 2013–2017 period. Advances in Economics, Business, and Management Research, 1(6), 165–168. https://doi.org/10.2991/aebmr.k.200305.041
PT Bank Jago Tbk. (2019). Annual Report 2019.
PT Bank Jago Tbk. (2021). Annual Report 2021.
PT Bank Jago Tbk. (2023). Annual Report 2023.
Puspitasari, I. (2019). Penerapan Metakognitif Dalam Media Pembelajaran. Jurnal Tadarus (Jurnal Pendidikan Islam), 8(1), 72-81.
Pratami, A. F. (2021). Pengaruh CAR, LDR, dan inflasi terhadap ROA pada bank umum yang terdaftar di BEI. Indonesian Journal of Economics and Management, 1(2), 410–418. https://jurnal.polban.ac.id/ojs-3.1.2/ijem/article/view/2508
Rivai, V., Veithzal, A. P., & Indroes, F. N. (2007). Bank and financial institution management (1st ed.). PT Raja Grafindo Persada.
Rukoyah, S., Fauziah, R. S., & Melani, E. (2021). Determinants Of Profit Growth In Manufacturing Companies Food . International Journal of Economics, Management, and Accounting (IJEMAC), 28-35.
Setiawan, R. (2019). Determinant net interest margin pada bank perkreditan rakyat Indonesia. Jurnal Riset Bisnis dan Manajemen, 12(2), 50–58.
Silaban, P. (2017). The effect of capital adequacy ratio, net interest margin and non-performing loans on bank profitability: The case of Indonesia. International Journal of Economics and Business Administration, 5(3), 58–69. https://doi.org/10.35808/ijeba/135
Steven, S., & Toni, N. (2020). The effect of bank capacity and loan to deposit ratio on profitability and credit risk. International Journal of Multicultural and Multireligious Understanding, 7(11), 1–5.
Sugiyono. (2017). Metode penelitian kuantitatif, kualitatif, dan R&D. Alfabeta.
Sunaryo, D. (2020). The effect of capital adequacy ratio (CAR), net interest margin (NIM), non-performing loan (NPL), and loan to deposit ratio (LDR) against return on asset (ROA) in general banks in Southeast Asia 2012–2018. Ilomata International Journal of Management, 1(4), 149–158. https://doi.org/10.52728/ijjm.v1i4.110
Sundararajan, A. (2016). The sharing economy: The end of employment and the rise of crowd-based capitalism. MIT Press.
Tangngisalu, J., Hasanuddin, R., Hala, Y., Nurlina, N., & Syahrul, S. (2020). Effect of CAR and NPL on ROA: Empirical study in Indonesian banks. The Journal of Asian Finance, Economics and Business, 7(6), 9–18. https://doi.org/10.13106/jafeb.2020.vol7.no6.009
Tandelilin, E. (2010). Portofolio dan investasi: Teori dan aplikasi (1st ed.). Kanisius.
Vodová, P. (2013). Determinants of commercial banks’ liquidity in Hungary. Acta Academica Karviniensia, 13(1), 180–188. https://doi.org/10.25142/aak.2013.016
Wibisono, M. Y., & Wahyuni, S. (2017). Pengaruh CAR, NPF, BOPO, FDR terhadap ROA yang dimediasi oleh NOM. Jurnal Bisnis dan Manajemen, 17(1), 41–62. https://doi.org/10.20961/jbm.v17i1.12304
Widyastuti, P. F., & Aini, N. (2021). Pengaruh CAR, NPL, LDR terhadap profitabilitas bank. Jurnal Ilmiah Mahasiswa Akuntansi Universitas Pendidikan Ganesha, 12, 1020–1027.
Zulkifli, Z., & Eliza, R. (2018). Determinan net interest margin perbankan nasional: Aplikasi model regresi data panel fixed effect. Jurnal Ilmiah Manajemen, 8(3), 640–656.
Afriyeni, A., & Fernos, J. (2018). Analisis faktor-faktor penentu kinerja profitabilitas bank perkreditan rakyat (BPR) konvensional di Sumatera Barat. Jurnal Benefita, 3(3), 325. https://doi.org/10.22216/jbe.v3i3.3623
Ambarawati, I. G. A. D., & Abundanti, N. (2018). Pengaruh capital adequacy ratio, non-performing loan, loan to deposit ratio terhadap return on asset. E-Jurnal Manajemen Universitas Udayana, 7(5), 2410. https://doi.org/10.24843/ejmunud.2018.v07.i05.p04
Anindiansyah, Sudiyatno, G., Puspitasari, B., & Elen, Y. (2020). Pengaruh CAR, NPL, BOPO, dan LDR terhadap ROA dengan NIM sebagai variabel intervening (Studi pada bank yang go publik di Bursa Efek Indonesia periode tahun 2015–2018). Proceeding SENDIU 2020, 560–567.
Arsyad, M., & Djoko, S. (2019). The effect of NPL, CAR, NIM, LDR, and DER on the bank’s performance on return on asset: Case study on conventional banking listed on the IDX for the period 2013–2017. Undergraduate Thesis, Fakultas Ekonomika dan Bisnis Universitas Diponegoro. http://eprints.undip.ac.id/72848/1/08_ARSYAD.pdf
Ascarya, A., & Yumanita, D. (2009). Comparing the efficiency of Islamic banks in Malaysia and Indonesia. Buletin Ekonomi Moneter dan Perbankan, 11(2), 95. https://doi.org/10.21098/bemp.v11i2.237
Astohar, A., Rahmadhani, S., & Nurlita, D. (2019). Faktor yang Berpengaruh terhadap Profitabilitas dengan Net Interest Margin sebagai Variabel Intervening pada Bank Perkreditan Rakyat di Indonesia. Among Makarti,12(2), 70–89. http://dx.doi.org/10.52353/ama.v12i2.184.
Bank Indonesia. (2011). Surat Edaran Bank Indonesia Nomor 13/24/DPNP/2011. Tentang Penilaian Tingkat Kesehatan Bank Umum. Jakarta.
Bernardin, D. E. (2016). Pengaruh CAR dan LDR terhadap return on asset. Ecodemica, 4(2). http://ejournal.bsi.ac.id/ejurnal/index.php/ecodemica
Budiwati, H. (2020). Bank funds management and its effects on net interest. International Journal of Accounting and Management Research, 1(1), 38–45.
Chin, W. W. (1998). The partial least squares approach for structural equation modeling. In G. A. Marcoulides (Ed.), Modern Methods for Business Research (pp. 295–336). Lawrence Erlbaum Associates.
Ekinci, R., & Poyraz, G. (2019). The effect of credit risk on financial performance of deposit banks in Turkey. Procedia Computer Science, 164, 979–987. https://doi.org/10.1016/j.procs.2019.09.139
Farhanditya, F. D., & Mawardi, W. (2021). Pengaruh BOPO, NPL, dan LDR terhadap return on asset dengan net interest margin sebagai variabel intervening (Studi pada bank umum go public yang terdaftar di BEI periode 2015–2019). Diponegoro Journal of Management, 10(3).
Ferly, M. M., Rinofah, R., & Kusumawardhani, R. (2023). Analisis pengaruh CAR dan BOPO terhadap ROA dengan NIM sebagai variabel intervening pada PT. Bank Pembangunan Daerah Kalimantan periode tahun 2011–2021. EKOMBIS REVIEW: Jurnal Ilmiah Ekonomi dan Bisnis, 11(2), 1207–1220.
Gesang, P., Budiman, D., Hayman, A., & Maulana, T. (2014). The determinant of commercial banks' interest margin in Indonesia: An analysis of fixed effect panel regression. International Journal of Economics and Financial Issues, 4(2), 295–303.
Ghozali, I., & Latan, H. (2012). Partial least squares: Konsep, teknik dan aplikasi menggunakan program SmartPLS 2.0 M3. Universitas Diponegoro.
Ghozali, I. (2018). Aplikasi analisis multivariate dengan program IBM SPSS 25. Badan Penerbit Universitas Diponegoro.
Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2017). A primer on partial least squares structural equation modeling (PLS-SEM) (2nd ed.). SAGE Publications.
Harun, U. (2016). The influence of financial ratios CAR, LDR, NIM, BOPO, NPL to ROA. Jurnal Riset Bisnis dan Manajemen, 4(1), 67–82. https://ejournal.unsrat.ac.id/index.php/jrbm/article/view/12352
Hardiyanti, W., Febriatmoko, B., Wulandari, S. (2016). Effect of LDR and BOPO on ROA with NIM as the intervening variable: Studies on commercial banks in Indonesia for the period 2011 – 2013). Dinamika Akuntansi, Keuangan dan Perbankan. 5(2). 155–166. https://www.unisbank.ac.id/ojs/index.php/fe9/ issue/view/335
Jima, M. D. (2017). Determinants of net interest margin in the Ethiopian banking industry. Journal of Finance and Economics, 5(3), 96–105. https://doi.org/10.12691/jfe-5-3-2
Kasmir. (2000). Manajemen perbankan. Raja Grafindo Persada.
Kasmir. (2014). Bank dan lembaga keuangan lainnya. Raja Grafindo Persada.
Kasmir. (2017). Analisis laporan keuangan. PT Raja Grafindo Persada.
Kasmir. (2019). Analisis laporan keuangan. Raja Grafindo Persada.
Latumaerissa, J. (2014). Manajemen bank umum. Mitra Wacana Media.
Lohano, K., & Kashif, M. (2019). Factors affecting the profitability of banks in developing countries. NUML International Journal of Business & Management, 14(2), 2410–5392.
Matindas, A. M., Pangemanan, S. S., & Saerang, D. P. E. (2015). Pengaruh capital adequacy ratio (CAR), BOPO dan non-performing loan (NPL) terhadap kinerja keuangan perbankan di Indonesia. Jurnal Riset Akuntansi, 10(1). https://doi.org/10.32400/gc.10.1.7367.2015
Muhammad Raditya Rahagi, Najmudin Najmudin, & Rio Dhani Laksana. (2023). The Effect of Net Interest Margin as a Mediator and Selected Factors in Determining the Profitability of Digital Banks. Jurnal Riset Manajemen, 1(1), 10–27. https://doi.org/10.54066/jurma.v1i1.96
Nasserinia, A., & Shamsabadi, F. (2015). Key determinants of German banking sector performance. Pertanika Journal of Social Sciences & Humanities, 23(2), 167–186.
Peraturan Bank Indonesia No. 3/22/PBI/2001. Tentang Transparansi Kondisi Keuangan Bank. Jakarta
Peraturan Bank Indonesia No. 13/01/PBI/2011. Penilaian Tingkat Kesehatan Bank Umum. Jakarta
Pranowo, T., Haris, A., Budianto, E., & Mardiyani, M. (2020). Effect of CAR, LDR, NPL, and NIM on ROA in foreign exchange public and private banks registered on the IDX 2013–2017 period. Advances in Economics, Business, and Management Research, 1(6), 165–168. https://doi.org/10.2991/aebmr.k.200305.041
PT Bank Jago Tbk. (2019). Annual Report 2019.
PT Bank Jago Tbk. (2021). Annual Report 2021.
PT Bank Jago Tbk. (2023). Annual Report 2023.
Puspitasari, I. (2019). Penerapan Metakognitif Dalam Media Pembelajaran. Jurnal Tadarus (Jurnal Pendidikan Islam), 8(1), 72-81.
Pratami, A. F. (2021). Pengaruh CAR, LDR, dan inflasi terhadap ROA pada bank umum yang terdaftar di BEI. Indonesian Journal of Economics and Management, 1(2), 410–418. https://jurnal.polban.ac.id/ojs-3.1.2/ijem/article/view/2508
Rivai, V., Veithzal, A. P., & Indroes, F. N. (2007). Bank and financial institution management (1st ed.). PT Raja Grafindo Persada.
Rukoyah, S., Fauziah, R. S., & Melani, E. (2021). Determinants Of Profit Growth In Manufacturing Companies Food . International Journal of Economics, Management, and Accounting (IJEMAC), 28-35.
Setiawan, R. (2019). Determinant net interest margin pada bank perkreditan rakyat Indonesia. Jurnal Riset Bisnis dan Manajemen, 12(2), 50–58.
Silaban, P. (2017). The effect of capital adequacy ratio, net interest margin and non-performing loans on bank profitability: The case of Indonesia. International Journal of Economics and Business Administration, 5(3), 58–69. https://doi.org/10.35808/ijeba/135
Steven, S., & Toni, N. (2020). The effect of bank capacity and loan to deposit ratio on profitability and credit risk. International Journal of Multicultural and Multireligious Understanding, 7(11), 1–5.
Sugiyono. (2017). Metode penelitian kuantitatif, kualitatif, dan R&D. Alfabeta.
Sunaryo, D. (2020). The effect of capital adequacy ratio (CAR), net interest margin (NIM), non-performing loan (NPL), and loan to deposit ratio (LDR) against return on asset (ROA) in general banks in Southeast Asia 2012–2018. Ilomata International Journal of Management, 1(4), 149–158. https://doi.org/10.52728/ijjm.v1i4.110
Sundararajan, A. (2016). The sharing economy: The end of employment and the rise of crowd-based capitalism. MIT Press.
Tangngisalu, J., Hasanuddin, R., Hala, Y., Nurlina, N., & Syahrul, S. (2020). Effect of CAR and NPL on ROA: Empirical study in Indonesian banks. The Journal of Asian Finance, Economics and Business, 7(6), 9–18. https://doi.org/10.13106/jafeb.2020.vol7.no6.009
Tandelilin, E. (2010). Portofolio dan investasi: Teori dan aplikasi (1st ed.). Kanisius.
Vodová, P. (2013). Determinants of commercial banks’ liquidity in Hungary. Acta Academica Karviniensia, 13(1), 180–188. https://doi.org/10.25142/aak.2013.016
Wibisono, M. Y., & Wahyuni, S. (2017). Pengaruh CAR, NPF, BOPO, FDR terhadap ROA yang dimediasi oleh NOM. Jurnal Bisnis dan Manajemen, 17(1), 41–62. https://doi.org/10.20961/jbm.v17i1.12304
Widyastuti, P. F., & Aini, N. (2021). Pengaruh CAR, NPL, LDR terhadap profitabilitas bank. Jurnal Ilmiah Mahasiswa Akuntansi Universitas Pendidikan Ganesha, 12, 1020–1027.
Zulkifli, Z., & Eliza, R. (2018). Determinan net interest margin perbankan nasional: Aplikasi model regresi data panel fixed effect. Jurnal Ilmiah Manajemen, 8(3), 640–656.
Published
2024-11-26
Section
Articles
Copyright (c) 2024 Muhammad Raditya Rahagi, Raden Aswin Rahadi
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
