Comparative of Banking Financial Performance in ASEAN: A Study of Banking in Indonesia, Malaysia, and Singapore

Abstract

ASEAN financial integration has increased interdependence among banking systems, making them more exposed to global economic shocks. Despite operating within the same regional framework, banks in Indonesia, Malaysia, and Singapore show notable differences in financial performance and resilience. This study compares the banking performance of the three countries over the 2020–2024 period using key financial indicators, including Return on Assets (ROA), Loan to Deposit Ratio (LDR), Capital Adequacy Ratio (CAR), Operating Expenses to Operating Income (BOPO), and Non-Performing Loans (NPL). The analysis is based on a quantitative, descriptive-comparative approach, examining secondary data from the annual financial statements of the nine largest conventional banks in each country, resulting in 45 observations. Descriptive statistics and One-Way ANOVA tests were applied using IBM SPSS Statistics to identify performance differences across countries. The findings reveal statistically significant differences in all indicators. Indonesian banks recorded the highest profitability and capital strength, with average ROA of approximately 2.8 percent and CAR of 23.8 percent. However, this performance was accompanied by higher operational inefficiency and credit risk, reflected in elevated BOPO and NPL levels. In contrast, banks in Malaysia and Singapore demonstrated more stable and efficient performance, with lower BOPO ratios and smaller NPLs. These results highlight structural and managerial differences across ASEAN banking systems and provide valuable insights for bank managers, regulators, and investors in assessing performance and risk