A Comparative Analysis State Owned and National Private Bank’s Financial Performance

Abstract

Bank is one of the institutions that play an important role in the economy of a country, bank has a function as intermediation function is to collect funds and distribute it. The global financial crisis hit over the world. Banks have liquidity difficulties, asset quality down , unable to create earnings and eventually capital is drained in time very fast. Since then the moneter regulation has change to improve development to increase growth and trust from society. The competition between state owned banks as well as with other national private banks which is unavoidable.. Public need the information about the performance of a bank as consideration the public in making decisions. Financial ratio analysis to measure financial performance is needed so the external investor or potensial investor, all interest parties can enrich their understanding about financial performance. The purpose of this research is to determine the results of the comparison of financial performance between state owned bank (Bank mandiei)and national private bank (BCA) in the 2016-2019 periods using the ratio of CAR, NPL, ROA, BOPO, LDR, and NIM. The data analysis method used in this research is hypothesis testing using the independent sample t-test. The results showed that the financial performance at the ratio of CAR, ROA, and NIM, there is a significant difference between State owned banks and National Private Banks. Meanwhile, there is no significant difference in the financial performance of the NPL, LDR, and BOPO ratios. State owned banks have the excellent of financial performance in the ratio of NPL, NIM, and BOPO. Meanwhile, National Private Banks in the CAR, ROA and LDR ratios.