BANK BUKOPIN ROA AND ROE ANALYSIS ON DEBT TO EQUITY RATIO (DER) POST ACQUISITION OF KOOKMIN BANK

Abstract

This research aims to analyze the effect of Return on Assets (ROA) and Return on Equity (ROE) on the Debt to Equity Ratio (DER) at Bank Bukopin after its acquisition by Kookmin Bank during the 2021–2024 periode. This acquisition is expected to strengthen the capital structure and improve Bank Bukopin's financial performance through improving efficiency and profitability. This research uses a quantitative approach with secondary data obtained from Bank Bukopin's quarterly financial reports published by the Financial Services Authority (OJK) and the bank's official website. Data analysis was carried out using the multiple linear regression analysis method, but hypothesis testing only focused on the t test to determine the partial influence of each independent variable on the dependent variable. The research results show that the ROA variable has a significant negative effect on DER, which means that increasing the efficiency of asset use in generating profits can reduce the level of bank dependence on debt-based funding. Meanwhile, the ROE variable has a significant positive effect on DER, which indicates that increasing profitability based on equity tends to be accompanied by an increase in the use of debt to maximize returns to shareholders. These results indicate that after the acquisition of Kookmin Bank, Bank Bukopin experienced improvements in aspects of profitability and capital management, although the financing structure still utilizes leverage as a performance improvement strategy