FINANCIAL REPORT ANALYSIS TO ASSESS THE FINANCIAL PERFORMANCE OF BANKING COMPANIES

Abstract

This study analyzes the financial performance of four banks listed on the Indonesia Stock Exchange: Bank BTN, Bank DBS Indonesia, Bank HSBC Indonesia, and Maybank Indonesia. Through solvency and profitability ratios during the 2020-2024 period. Using a descriptive quantitative approach, financial data were obtained from annual reports published on the Indonesia Stock Exchange and official bank websites. The analysis employed trend analysis and comparative analysis to examine Debt to Asset Ratio (DAR), Debt to Equity Ratio (DER), Return on Assets (ROA), and Return on Equity (ROE). The findings reveal that all banks maintained DAR within the safe range of 81-90%, while DER showed significant variation with BTN recording the highest leverage (1,251.98%) due to its focus on housing finance. In terms of profitability, HSBC demonstrated superior performance with ROA of 1.94% and ROE of 13.17%, while DBS showed dramatic recovery from negative ROE of -3.00% (2020) to 13.87% (2023). Conversely, Maybank and BTN maintained ROA below 1%, indicating the need for operational efficiency improvements. The study confirms the trade-off theory between solvency and profitability, showing that high leverage can be sustainable with effective management and government support. Foreign banks exhibited better resilience than domestic banks in facing the pandemic crisis, supported by parent company backing. This research contributes to the financial analysis literature by providing empirical evidence of post-pandemic banking performance and offers practical implications for regulators, investors, and bank management in formulating strategies to support national financial system stability.