Abstract

This study aimed to analyze the causality between intermediation as measured by the LDR, capital
structure measured by DER, efficiency as measured by ROA, capital measured by CAR and NPL to quantify
the risk to profitability. This study took a sample of 25 banks listed on the Indonesia Stock Exchange period
2008 to 2013, with a purposive sampling method. The data analysis technique multiple linear regression
model. The results showed that the LDR, DER, CAR positive effect on profitability. While ROA and NPL
influenced by the negative direction towards profitability.