The Effect of Banking Financial Ratio Toward Rural Banks Profitability (Empirical Study at PT. BPR BKK (Perseroda) All Over Central Java)

The purpose of this study was to examine the effect of the variables NPL, CAR, LDR and BOPO on profitability as measured by ROA at BPR BKK (Persero) in Central Java. This study was conducted using the total sampling method at 33 BPR BKK in Central Java. The data analysis technique uses descriptive statistics to interpret the data, hypothesis testing uses multiple regression methods which include classical assumption test, coefficient of determination test, F test, and t test to prove the hypothesis. The results of hypothesis testing using t-test are known to be the t-count value of the NPL variable 0.019 with a significance of 0.985, the t-count value of the CAR variable 1.472 with a significance of 0.144, the t-count value of the LDR variable 0.592 with a significance of 0.555, and the t-count value of the BOPO variable -31,375 with a significance of 0.000. Based on the analysis, it was concluded that from the four variables studied, only the BOPO variable significantly affected the ROA ability of BPR BKK in Central Java with a positive direction, the other three variables, namely NPL, CAR, and LDR were not proven to have a significant influence on the ROA of BPR BKK in Central Java during the 2018-2021 period.The results of this study have implications for BPR BKK in Central Java that in economic uncertainty, one of the most important things is to make cost efficiencies so that BPR can maintain profits.Keywords: NPL, CAR, LDR, BOPO, Profitabilit