The Effect of Net Interest Margin, Loan to Deposit Ratio, and Non-Performing Loans on Profit Growth at PT Bank CIMB Niaga Tbk for the Period 2015-2024

Abstract

The banking sector plays an important role in maintaining financial stability and supporting economic growth, while profit growth reflects bank performance. This study aims to analyze the effect of Net Interest Margin (NIM), Loan to Deposit Ratio (LDR), and Non-Performing Loan (NPL) on profit growth at PT Bank CIMB Niaga Tbk for the period 2015–2024. This study uses an associative quantitative approach with secondary data from annual financial reports. The sample consists of 10 observation periods. Data were collected through documentation and analyzed using descriptive statistics, classical assumption tests, multiple linear regression, t-tests, F-tests, and the coefficient of determination using SPSS 27. The results show that NIM has a negative and significant effect on profit growth, LDR has no significant effect, and NPL has a positive and significant effect. Simultaneously, NIM, LDR, and NPL have a significant effect on profit growth, with an adjusted R² of 75.4%, indicating that the model explains 75.4% of the variation in profit growth. These findings indicate that NIM and NPL are significant factors associated with profit growth during the study period.