Non Performing Loan as Mediation of the Effect Capital Adequacy Ratio and Loan to Deposit Ratio on Profitability

This study aims to examine the effect of CAR and LDR on ROA with NPL as a mediating variable at state-owned banks for the period 2015 to 2022. The sample for this study was 4 (four) state-owned banks, namely BRI, BNI, Mandiri and BTN. With an observation period of 8 years, the sample for this study was 32. This study used Partial Least Square with the SmartPLS 3 program. Of the 7 hypotheses, the results showed that only 2 hypotheses were accepted, namely the effect of CAR on ROA and the effect of LDR on NPL. Indirect effect, namely NPL as a mediating effect of CAR on ROA is not proven or rejected. Likewise, the indirect effect of LDR on ROA with NPL as a mediating variable is also rejected.