The research was aimed at testing the effect of Capital adequency ratio
(CAR), Non Performing loan (NPL), and Loan to deposit ration (LDR) toward
banks financial performance. The samples were eight banks. The data were
analyzed by doing descriptive test, clasical assumption test, multiple regression
analysis and hypothesis test using simultaneous test (F) and partial test (t) with
level of significance 5%.
The result showed that CAR, NPL, and LDR simultaneously significant
effect on the financial performance of banks. Capital adequency ratio partially
affected positively and significantly toward bank financial performance. Non
Performing loan partially affected negative and not significantly toward bank
financial performance. Loan to deposit ratio partially effect positively and not
significantly toward bank financial performance.