The Effect of Financial Performance on Return on Assets in Banks Before and During the Covid-19 Pandemic in Indonesia

Suharyanto Suharyanto, Yusuf Iskandar, Achmad Zaki, Puri Setioningtyas Widhayani


The COVID-19 case began in Indonesia in 2020. This condition continues to spread throughout Indonesia and causes all companies not to run optimally. It can affect the company's performance, making it less than optimal. One of them is a service company such as a bank company that must carry out its operational activities in a limited manner, causing credit to the community to run less optimally. The decline in bank performance has an impact on the decline in profits earned by bank companies. The purpose of this study is to examine the financial performance of banks from 2018 to 2019, which was before the covid 19 pandemic. This study also examines the financial performance of banks during the covid 19 pandemic from 2020 to 2021 and provides several alternatives to create better banking performance in Indonesia. This study uses secondary data from audited bank annual reports from 2018 to 2021, accessed on the website The analysis used in this study is multiple regression analysis to assess bank performance using several financial ratios, namely capital adequacy ratio, net interest margin, and loan deposit ratio to return on assets. The findings of this study show that the capital adequacy ratio, net interest margin, and loan deposit ratio have a significant positive effect on return on assets at commercial banks in Indonesia with the phenomenon before and during the COVID-19 pandemic. It proves that the capital adequacy ratio, net interest margin, and loan deposit ratio have a positive influence on company performance. Increasing financial ratios in banks can create banking conditions that are more effective and can attract investors to invest in bank companies.


Capital Adequacy Ratio; Net Interest Margin; Loan Deposit Ratio; Return on Assets; Commercial Bank; Covid-19 Pandemic

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