Pengaruh NPL, LDR, BOPO Terhadap ROA PT Bank Mega 2014 - 2021

Summary

Freddy Siagian from Yogyakarta's police academy presents his thesis on the impact of credit risk, liquidity risk, and operational risk on the profitability of PT Bank Mega Tbk. His research covers the period 2014-2021, highlighting the bank's performance and the importance of trust in banks. Siagian discusses the role of risk management in maintaining profitability and the need for banks to provide the best services to attract investors and depositors. His findings suggest that operational risk significantly impacts Bank Mega's profitability, while credit and liquidity risks do not.

Takeaways

• 😀 The speaker, Freddy Siagian, is introducing himself and his thesis on the influence of credit risk, liquidity risk, and operational risk on the profitability of PT Bank Mega Tbk from 2014-2021.
• 💼 The thesis is motivated by the importance of banks in financial intermediation, as mentioned in Law No. 10 of 1998, which highlights banks' role in collecting public funds and providing credit to improve societal welfare.
• 📉 The number of banks in Indonesia has decreased significantly from 2014 to 2021, with many banks going bankrupt or being unable to survive during this period.
• 🏦 The thesis focuses on factors affecting the trust of customers and investors in a bank, particularly the health of a bank, which is crucial for maintaining financial stability.
• 📊 According to the speaker, the health of a bank can be evaluated using four factors: risk profile, good corporate governance (GCG), earnings, and capital. The study focuses on three risks: credit risk, liquidity risk, and operational risk.
• 📈 Profitability is measured by Return on Assets (ROA), which is emphasized as a key indicator of a bank's ability to generate earnings from its assets.
• 💳 The study looks at the impact of Non-Performing Loans (NPL), Liquidity (LDR), and operational efficiency (BOPO) on Bank Mega's profitability, using quarterly data to analyze trends.
• 🔍 NPL and LDR are found to have inconsistent effects on profitability in previous studies, while BOPO has a more direct negative impact on ROA.
• 🤔 The findings suggest that operational risk (BOPO) has a significant negative effect on profitability, whereas credit risk (NPL) and liquidity risk (LDR) do not have significant impacts.
• 📑 The speaker concludes by suggesting that future research could include additional variables, such as capital adequacy, to provide a more comprehensive analysis of bank performance.

Q & A

What is the main focus of Freddy Siagian's thesis presentation?

The thesis focuses on the impact of credit risk, liquidity risk, and operational risk on the profitability of PT Bank Mega Tbk during the period from 2014 to 2021.

Why is profitability important for banks according to the presentation?

Profitability is important for banks because it indicates the bank's ability to generate earnings, which is crucial for its sustainability, competitiveness, and ability to attract investors and depositors.

What is NPL, and how does it relate to credit risk?

NPL (Non-Performing Loan) represents the ratio of non-repayable loans to total loans issued by the bank. A higher NPL indicates higher credit risk, as the bank faces more defaulted loans, which negatively impacts profitability.

How does liquidity risk impact a bank’s profitability?

Liquidity risk affects a bank's ability to meet credit requests and fund withdrawals. If the bank's liquidity is too low or too high, it can impact profitability negatively by either failing to serve clients effectively or by not utilizing its resources efficiently.

What role does operational risk play in banking performance?

Operational risk stems from internal failures such as inadequate systems, management errors, or external disruptions. It is measured by the ratio of operating expenses to operating income (BOPO), and high operational risk can reduce profitability.

Why was PT Bank Mega chosen as the object of the study?

PT Bank Mega was chosen because it consistently improved its profitability from 2014 to 2020, even as several other banks faced financial challenges or went bankrupt during the same period.

What were the findings regarding the impact of credit risk on profitability?

The study found that credit risk, measured by NPL, did not have a significant impact on the profitability of PT Bank Mega during the study period.

How did liquidity risk (LDR) affect PT Bank Mega's profitability?

The study showed that liquidity risk, measured by the Loan to Deposit Ratio (LDR), did not have a significant effect on the profitability of PT Bank Mega.

Which risk factor was found to have a significant impact on profitability?

Operational risk, measured by BOPO (Operational Expense to Operating Income), was found to have a significant negative impact on profitability. As operational expenses increased, profitability decreased.

What recommendations did the researcher give to PT Bank Mega based on the findings?

The researcher recommended that PT Bank Mega should control its operational expenses (BOPO) to improve efficiency, which would positively impact its profitability.