THE EFFECT OF CREDIT DEVELOPMENT AND INTEREST INCOME ON PROFITS AT BANK bjb

The economic activity of a country is inseparable from the traffic of money payments, where the banking industry plays a very strategic role, it can be said to be the lifeblood of the economic system, banks have the main function as an intermediary service with their main activities collecting funds from the public and channeling them back to the public and also as the center of a complex financial structure both nationally and internationally, where the objective is to support the implementation of national development. Identify problems that will be discussed further are as follows: How is the development of credit in 2012-2018 at bank bjb, How is the development of interest income in 2012-2018 at bank bjb, How is the development of profit in 2012-2018 at bank bjb, How is the influence of credit development on profits in 2012-2018 bank bjb, How is the influence of the development of interest income on profits in 2012-2018 at bank bjb. Given this problem to solve the problem between the effect of credit development and interest income on earnings, the researcher uses a simple regression coefficient


INTRODUCTION
The economic activity of a country is inseparable from the traffic of money payments, where the banking industry plays a very strategic role, it can be said to be the lifeblood of the economic system, banks have the main function as an intermediary service with their main activities collecting funds from the public and channeling them back to the public and also as the center of a complex financial structure both nationally and internationally, where the objective is to support the implementation of national development.
Banks are one of the important factors in the country's economy."A bank is an institution that runs a company in receiving and giving money to third parties." With the existence of a bank, those who lack funds can get an injection of funds which can then *Corresponding author's e-mail: agus.yudianto@unwir.ac.id http://openjournal.unpam.ac.id/index.php/EAJcreate jobs so that unemployment can be reduced and the economy can run properly.The profits obtained by each banking company mostly come from the loan interest that each bank receives, as a result of providing a certain amount of credit to its customers or debtors.Therefore, credit is very important in the operational activities of any banking company.Credit is an asset that generates interest income, so the portion of credit in banking assets is very dominant.
The economic activity of a country is inseparable from the traffic of money payments, where the banking industry plays a very strategic role, it can be said to be the lifeblood of the economic system, banks have the main function as an intermediary service with their main activities collecting funds from the public and channeling them back to the public and also as the center of a complex financial structure both nationally and internationally, where the objective is to support the implementation of national development.
Banks are one of the important factors in the country's economy."A bank is an institution that runs a company in receiving and giving money to third parties." With the existence of a bank, those who lack funds can get an injection of funds which can then create jobs so that unemployment can be reduced, and the economy can run properly.The profits obtained by each banking company mostly come from the loan interest that each bank receives, as a result of providing a certain amount of credit to its customers or debtors.Therefore, credit is very important in the operational activities of any banking company.Credit is an asset that generates interest income, so the portion of credit in banking assets is very dominant.
The effect of giving credit and interest income on profits needs to be studied because to find out how much credit and interest income contribute to profits, and it is hoped that the amount of credit in the future can be continuously increased

Bank
Bankers and experts define banks differently but basically have the same aims and objectives.In several books and references on banking, there are various definitions of a bank, including based on Law No. 10 of 1998 concerning Amendments to Law No.7 of 1992 concerning Banking explains that: "Bank is a business entity that collects funds from the public in the form of savings and distributes them back to the community in the form of credit and other forms in order to improve the standard of living of the people at large".Kasmir (2008: 25) explains that the definition of a bank is a financial institution whose main activity is to collect funds from the public and channel these funds back to the public and provide other services.And according to Rivai (2007: 321) explains that: "A bank is a business entity whose transactions are closely related to money, accepting deposits (deposits) from customers, providing and for every *Corresponding author's e-mail: agus.yudianto@unwir.ac.id http://openjournal.unpam.ac.id/index.php/EAJwithdrawal, collecting checks at the customer's orders, extending credit, and / or investing the excess deposits until they are needed for repayment." Previous research has shown that there is a gap, namely before the impact of the crisis there was an increase in the use of credit in line with improving national economic developments.Precisely with the current conditions, the crisis has hit all corners of the globe which has an impact on global economic conditions Based on the above understanding, it can be concluded that a bank is a business entity whose business activities receive savings from the public in the form of demand deposits, savings, deposits and others which then redistribute these funds to the public in the form of credit in order to obtain profits and provide other services in the past.cross payments for the benefit of the public at large.
According to Dendawijaya (2009: 15), the types or forms of banks vary, depending on the way they are classified.Based on Law No. 10 of 1998 concerning Amendments to Law No.7 of 1992 Banking divides a bank into 2 (two) parts consisting of: 1) Commercial Bank is a bank carrying out business activities conventionally and or based on Sharia support the smooth operation of the payment mechanism.2) Rural Banks (BPRs) are banks which carry out their activities do not provide services in payment traffic.This is possible because one of the services offered by commercial banks are services related to payment mechanisms.Some of the most well-known services are clearing, money transfers, receiving deposits, providing cash payment facilities, credit, easy and convenient payment facilities, such as plastic cards and electronic payment systems.
The funds that are mostly raised by commercial banks are savings funds.In Indonesia, savings funds consist of demand deposits, time deposits, certificates of deposit, savings and or other equivalent forms.The ability of commercial banks to raise funds is far greater than that of other financial institutions.Savings funds that have been collected will be channeled to parties in need, primarily through credit distribution.
Commercial banks are also very much needed to facilitate and / or expedite international transactions, both goods / services transactions and capital transactions.Transaction difficulties between two parties of different countries always arise because of differences in geography, distance, culture and monetary systems of each country.The presence of commercial banks operating on an international scale will facilitate the settlement of these transactions.With the existence of a commercial bank, the interests of the parties conducting international transactions can be handled more easily, quickly and cheaply.
Storage of valuables was one of the earliest services offered by commercial banks.People can store their valuables such as jewelry, money, and certificates in boxes provided by banks for rent (safety box or safe deposit box).The increasingly rapid economic development has caused banks to *Corresponding author's e-mail: agus.yudianto@unwir.ac.id http://openjournal.unpam.ac.id/index.php/EAJexpand their services by storing securities or securities.
In Indonesia, the provision of other services by commercial banks is also getting more and more extensive.Currently we are able to pay for electricity, telephone buy cellphone credit, send money via ATM, pay employee salaries using bank services.These services are very easy and provide a sense of security and comfort to those who use them.

Overview of Credit
The word credit comes from the Latin credere which means trust.Trust in this case means mutual trust between the lender and the recipient of the loan.The lender gives confidence to the loan recipient that the money or funds lent can be returned at a certain time in accordance with the agreement.Meanwhile, the recipient of the loan receives trust and has the responsibility to return the money or funds to the lender.
According to Rivai (2007) explains that: "Credit is the delivery of goods, services, or money from a party (creditor / lender) on the basis of trust to another party (debtor or debtor) with a promise to pay from the recipient of the credit to the credit provider on the date agreed by both parties." Meanwhile, based on Law No.10 of 1998 concerning Amendments to Law No.7 of 1992 Concerning Banking, Article 1 paragraph 11 explains that: "Credit is the provision of money or an equivalent claim, based on a loan agreement between the bank and another party which requires the borrower to pay off its debt after a certain period of time with interest." Based on the above definition, it can be concluded that credit is a bank business activity in providing money or claims based on trust between the party making the loan and the party receiving the loan based on an agreement or agreement, where the borrower has an obligation to return the money at a certain time in accordance with an agreement with additional interest as an advantage for the bank or lender.
According to Firdaus and Ariyanti (2009), the elements contained in credit are: (1) A person or entity that owns money, goods or services is willing to lend it to another party.Namely the so-called creditor (credit provider); (2) There are parties who need / borrow money, goods or services.Namely the so-called debtor (credit recipient); (3) The creditor trusts the debtor; (4) There is a promise and ability to pay from the debtor to the creditor; (5) There is a time difference, namely the difference between the time of delivery of money, goods or services by the creditor and at the time of repayment from the debtor; (6) There is a risk, namely as a result of the time difference element as above, where the future is an uncertain risk, then the credit basically contains risk.This risk comes from various sources, including the decline in the value of money due to inflation and so on; (7) There is interest that must be paid by debtors to creditors (even though there are loans that do not have interest) According to Firdaus and Ariyanti (2009) Bank transactions, whether they are the main activity or not.Interest income earned by banks from loans and investments in securities.The size of the interest income earned by banks is influenced by the optimization of distribution or investment of bank funds, interest rates and collectibility and loans extended.The more funds distributed, the higher the interest income earned by the bank.The higher the loan interest rate, the higher the interest income earned.Likewise, if the level of credit collectibility is good, the better the interest income earned by the bank.Until now, banks are still focused on investing in productive assets, especially credit.This makes interest income still the type of income that dominates bank income.The high interest income will have a big opportunity to increase bank profits.
The achievement of profit is the success of a company in conducting its business, profit can also be used to assess whether the performance of a company is good or not.Lending will generate interest income, and interest income will increase profits.So, the greater the credit given and the interest earned, the higher the bank's profits.

Method Used
In this research, the writer uses descriptive verification method.According to Sugiyono (2012) the descriptive verification method is trying to solve the problem by collecting, presenting, describing and analyzing the data in the case systematically and factually so that it can explain the object under study and in the end draw conclusions based on the research and analysis that has been carried out.

Variable Operationalization
In this study using variables X and Y 1. Independent variable / free using the symbol X is a variable that affects the next variable or variables that are not influenced by other variables.The sampling technique used in this study was purposive sampling method.According to Sugiyono (2012), what is meant by the purposive sampling method, namely the technique of determining the sample with certain considerations.The objective is to determine whether the independent / independent variables have a significant effect on the dependent / dependent variable.The sample used is in the form of financial statements from 2012-2018 or for 7 years with the following criteria: 1. Data taken from the latest bank bjb financial statements 2. The data taken has been audited

Simple Linear Regression
Given this problem to solve the problem between the effect of credit Where the multiple regression oefficient equation serves to solve the problem (cause-effect relationship) assuming at least a ratio data scale.

Correlation Analysis
Pearson correlation analysis (product moment) shows the strength and weakness of the relationship and the direction of the independent variable with the dependent variable where the relationship is expressed by the signs (+) and (-).The magnitude of the correlation coefficient is -1 ≤ r ≤ 1.

If (-):
There is a negative or opposite relationship.

If (+):
There is a positive or unidirectional relationship.
1.If r = -1, then the relationship between the two variables is very strong and has an inverse character.
2. If r = 0 or close to 0, then the relationship between the two variables is very weak or there is no relationship.
3. If r = 1 or close to 1 then the relationship between the two variables is very strong and has unidirectional characteristics.To find this relationship, it must be compared with the limit of the correlation coefficient.The limit for the correlation coefficient is -1 to 1 or -1 <r <1.The farther the number r *Corresponding author's e-mail: agus.yudianto@unwir.ac.id http://openjournal.unpam.ac.id/index.php/EAJ is from 0, the stronger the relationship between the two variables.
Meanwhile, according to Sugiyono (2012) the guidelines determining the correlation coefficient are as follows:

Coefficient of Determination (r2)
The test of the coefficient of determination is carried out to measure or find out how much change in the dependent variable is explained or determined by the independent variable.In this study, the analysis of the coefficient of determination (Kd) is used to see how much influence the development of credit and interest income has on earnings expressed as a percentage.The formula used according to Sugiono ( 2010) is as follows: Where : Kd = How far the change in variable Y is influenced by variable X = The square correlation coefficient

Hypotesis Testing
According to Sugiyono (2012) states that a hypothesis is a well-defined statement regarding the characteristics of the population.There are two kinds of hypotheses made in a study, namely the null hypothesis (H0) and the alternative hypothesis (H1).The null hypothesis is the hypothesis that will be accepted except that the data collected is wrong.The alternative hypothesis will be accepted only if the data collected supports it.H0: β = 0, the effect of credit and interest income has no effect on profit.H1: β ≠ 0, it affects credit and interest income on profits.The significant test of this hypothesis was carried out by testing t with a significant level of 0.05 using dk = n -2 with the following formula: t = Correlation test statistic r = correlation coefficient between variable (X) and variable (Y) n = The amount of data observed was determined with a 95% confidence level at the 5% significance level and n-2 degrees of freedom Where: If t> from t, then H is rejected, H is accepted If t <of t, then H is accepted, H is rejected.

Credit development at bank bjb
Credit is a bank business activity in the provision of money or claims based on trust between the party giving the loan and the party receiving the loan based on an agreement or agreement, where the borrower has an obligation to return *Corresponding author's e-mail: agus.yudianto@unwir.ac.id http://openjournal.unpam.ac.id/index.php/EAJthe money at a certain period of time, in accordance with the agreement with the addition of interest on profits for the bank or lender.Credit provided by banks has increased continuously every year.The highest credit development occurred in 2014, reaching IDR 88,577,625,454 or 53.55%, while the lowest credit development occurred in 2013, reaching 6,759,415,052 or 4.26%.Thus the amount of credit extended to bank bjb has grown by an average of 20.98% per year.This increase in credit is caused by the capacity and quality of service as well as the maximum financial turnover of bank bjb, thereby increasing credit provision and increasing the interest of the community / customers themselves to make credit loans.

Development of Interest Income 2012-2018 at Bank bjb
Interest income consists of interest income earned on loans and investments in securities.The size of the interest income earned by banks is influenced by the optimization of distribution or investment of bank funds, interest rates and loans extended.The more funds distributed, the higher the interest income earned by the bank.The higher the loan interest rate, the higher the interest income earned.From the table above, it can be seen that the interest income earned by bank bjb always increases every year.

Profit Development 2012-2018 at Bank bjb
According to Wulandari (2009: 28) explains that profit is the value of total income greater than the value of total costs for the same period of time, so the bank generates profit.Conversely, if the total income is less than the total cost value, the bank will suffer a loss.From the table above, it can be seen that the profit earned by bank bjb has always increased every year.Profits obtained have increased continuously every year.The highest profit development occurred in 2012 amounting to Rp 8,386,194,286

Normality test
The normality test will use the one sample Kolmogorov Smirnov test method and a normal probability plot.The results of the one sample Kolmogorov Smirnov test are said to be normal if the Kolmogorov Smirnov test value exceeds 0.05.Whereas in a normal prbability plot, the data is said to be normal if the data distribution follows the diagonal lines of the X and Yaxes.

Heteroscedasticity Test
To test the heteroscedasticity symptom, analysis is used using a scatter plot diagram as follows: Source: author's compilation, 2021

Figure 2 Scatter Plot
From the picture above, it can be seen that the data points spread above and below the point 0 of the X and Y axes, so it can be stated that the data is free from heteroscedasticity symptoms.With the results of the assumption test above, there was no violation of the classical assumptions, thus the data deserves to be analyzed using simple regression analysis.

Correlation Coefficient Analysis
The correlation coefficient is used to determine the extent of the relationship between the independent variable (credit development) and the independent variable (profit development).The technique used is pear correlation.

Result
obtained the Pearson correlation coefficient value of 0.996.The correlation coefficient value is positive, indicating that the relationship between credit development and profit development is a very strong positive relationship, if credit development has increased, it will be followed by an increase in profit.

Analysis of the coefficient of determination
*Corresponding author's e-mail: agus.yudianto@unwir.ac.id http://openjournal.unpam.ac.id/index.php/EAJAnalysis of the coefficient of determination (KD) is used to determine how much influence the independent variable has on the dependent variable.The value of the coefficient of determination (KD) or called the R-square is the square of the correlation value (R).
It can be seen that the KD (Rsquare) value is 0.993.So it can be concluded that credit development has an influence on the development of profit by 0.993x100% = 99.3%, while the remaining 100% -99.3% = 0.7% is the influence of other variables not examined.

Hypothesis Testing
To prove whether credit development had a significant influence on the development of profit at bank bjb in 2012-2018, the following hypothesis was tested: H0: β = 0 means that the effect of credit development does not have a significant effect on earnings development.The values a and b in the above equation can be interpreted as follows: a = 3.014 means: if the development of interest income is zero, then the profit growth will be worth 3.014 percent.b = 0.770 means: if the development of interest income increases by one percent, the development of profit will increase by 0.770 percent

Correlation Coefficient Analysis
The correlation coefficient is used to determine the extent of the relationship between the independent variable (interest income development) and the independent variable (earnings development).The technique used is the Pearson correlation.By using SPSS software, the following correlation analysis results.obtained the Pearson correlation coefficient value of 0.991.The correlation coefficient value is positive, indicating that the relationship between the development of interest income and the development of earnings is a very strong positive relationship, if the development of interest income has increased, it will be followed by an increase in profit.4. Analysis of the coefficient of determination Analysis of the coefficient of determination (KD) is used to determine how much influence the independent variable has on the dependent variable.The value of the coefficient of determination (KD) or called the R-square is the square of the correlation value (R) It can be seen that the KD (Rsquare) value is 0.982.So it can be concluded that the development of interest income has an influence on the development of profit by 0.982 x 100% = 98.2%, while the remaining 100% -98.2% = 1.8% is the influence of other variables not examined.

Figure 1
Figure 1 Conceptual Framework development and interest income on earnings, the researcher uses a simple regression coefficient.The simple linear regression formula is as follows: number of direction or regression coefficient, which shows the rate of increase or decrease in the dependent variable based on the respondent variable.If b (+) increases, and if b (-) then decreases n = Amount of data

R
The simple regression equation to be formed is: = a + bX The estimated value of earnings development a: Constants b: Regression coefficient x: Variable Credit obtained a value of 1.284 and a value of b of 0.884.Thus, a simple regression equation can be formed as follows: = 1.284 + 0.884X The values a and b in the above equation can be interpreted as follows: a = 1.284 means: if credit development is zero, the profit growth will be worth 1.284 percent.b = 0.884 means: if credit development increases by one percent, then the profit development will increase by 0.884 percent income has a significant effect on the development of earnings at bank bjb in 2005-2011, the following hypothesis is tested: H0: β = 0 means that the influence of the development of interest income does not have a significant effect on the development of earnings.H1: β # 0 means that the development of interest income has a significant influence on the development of earnings.Significance level (α) = 0 0.05 Test criteria: Accept H1 if t-count> t-

The Influence of Interest Income Development on 2012-2018 Profits at bank bjb
*Corresponding author's e-mail: agus.yudianto@unwir.ac.id http://openjournal.unpam.ac.id/index.php/EAJ table, reject H0 It can be seen that the t-value of the development of interest income is 14.696.This value will be compared with the t-table value in the t distribution table.With α = 0.05 df = n-k-1 = 4 and a two-sided test, the t table is + 2.776.It is known that the t-count is 14.696> t-table (2.776), then H1 is accepted and H0 is rejected.This means that the development of interest income has a significant effect on the development of earnings *Corresponding author's e-mail: agus.yudianto@unwir.ac.id http://openjournal.unpam.ac.id/index.php/EAJ