THE ANALYSIS OF NON-STATE OWNED COMMERCIAL BANKS’ FINANCIAL PERFORMANCE IN INDONESIA

Abstract

This study focused on the Bank Financial Performance and the implementation of CAMEL analysis for investing in banking sector. This study emphasis on the main research question: ‘Is there any influence of bank’s soundness toward share price of the bank in the non-state owned commercial bank in Indonesia?’ In order to answer this research question, these study analyses five hypotheses related to Capital Adequacy Ratio, Non-Performing Loan, Cost-to-Income Ratio, Net Interest Margin, Loan-to-Deposit Ratio, and Share Price of a bank. This study is a quantitative research with secondary data that generated from annual report of 6 (six) non-state owned commercial bank in Indonesia year 2016 to 2017. This study used Panel Data Generalized Least Squares Regression by STATA M-64. The finding shows that four of five variables have positive influence toward share price of the bank but only three will increase the share price.