Abstract :
This study aims to determine whether the variables NIM (Net Interest Margin) and NPL (Non Performing Loan) affect the profitability of banking companies listed on the Indonesia Stock Exchange. This research is a quantitative research. The population is all banking companies listed on the Indonesia Stock Exchange using purposive sampling technique with a total sample of 35 companies in 3 years, so the total sample is 105. The data analysis technique used is multiple linear regression analysis. This study also uses the classical assumption test method. The results obtained indicate that the NIM (Net Interest Margin) variable has a significant positive effect on Profitability as measured by ROA (Return On Assets) in banking companies listed on the Indonesia Stock Exchange, while the NPL (Non Performing Loan) variable has a significant negative effect on Profitability as measured by ROA (Return On Assets) in banking companies listed on the Indonesia Stock Exchange.
Keywords: NIM (Net Interest Margin), NPL (Non Performing Loan), Profitability, ROA (Return On Asset)