ABSTRACT

In generating profits, Return on Assets (ROA) shows the ability of bank

management from assets owned. The greater ROA of a bank shows a high level of
profit which is achieved by the bank and the term position of asset are
increasingly.The value of ROA can be influenced by various factors.The aim of this
research is to analyze the effect of CAR and NPF on profitability (ROA) at Bank
Muamalat Indonesia.
In this study, the object is Bank Muamalat Indonesia on period I quarter of
2008 until IV quarter 2016.The method used in this research is to use multiple
regression analysis with hypothesis tests.

From the results of hypothesis,testing simultaneously shows that CAR and

NPF have a significant influence on the profitability of Bank Muamalat
Indonesia.Based on partial test of hypothesis, it results that a variable of CAR and
NPF have significant influences with negative directions.Then, 41.7% has been
changed profitability process, it can be explained by the ratio of CAR and NPF while
the rest is influenced by other factors that it is not included in this regression model.