Banking Profitability and Covid-19: Evidence from Indonesia

The research investigates the determinants of commercial bank profitability in Indonesia before and during specific factors influence bank profitability as measured by Return on Assets (ROA), Capital Adequacy Ratio (CAR), loan-to-loan Ratio to deposits (LDR), Operating Costs to Operating Income (BOPO), Non-Performing Loans (NPL), and Bank Size.The research sample includes banks in Bank Groups Based on Core Capital (KBMI) III and IV.The research uses quarterly data for the period 2018 to 2022.The data analysis method for estimating and analyzing the ROA determining factor model is a panel data regression model.The research results found that the CAR ratio had a positive effect on ROA before COVID-19 occurred, but during the COVID-19 period, there was no effect.The LDR ratio did not affect ROA before COVID-19 occurred but had a positive impact when COVID-19 occurred.BOPO efficiency hurt ROA before and during COVID-19.The NPL ratio and Bank size do not affect ROA before and during COVID-19.