INDONESIA STATE-OWNED BANK FINANCIAL PERFORMANCE ANALYSIS

Abstract

In Indonesia, the current bank’s performance is unstable. The purpose of this research is to analyze the influence of management quality, asset quality, liquidity, and good corporate governance towards bank financial performance of 6 (six) Indonesia stateowned bank from 2013 to 2017. In addition, the indicators’ measurements of management quality ratios are Cost to Income Ratio (CIR), Total employee (TE), and total branch (TB). For measuring asset quality ratio, the indicator is Non-Performing Loan (NPL). For measuring liquidity ratio, the indicator is Loan to Deposit Ratio (LDR). For measuring good corporate governance ratio, the indicator is total Board of Director (BOD). Researcher has used data from 6 (six) commercial banks in Indonesia. The research is applied Quantitative Method with secondary data was taken from quarterly reports of chosen banks. Specifically, researcher has implemented multiple linear regression model. The results are valuable evidences such as all 6 variables have simultaneous effect to ROA. Total branch and total BOD does not have any partial significant influence towards ROA. Other independent variables: CIR, total employee, NPL, and LDR are recognized to have partial influence towards ROA. This research is recommended for investors, commercial banks in Indonesia, and more variables should be recommended to apply to know the influence on bank financial performance for the future research.