INDONESIAN BANKS’ PROFITABILITY AMID COVID-19 PANDEMIC

Abstract

Banking in Indonesia faces a number of challenges in the midst of the COVID-19 outbreak. During the COVID-19 pandemic, banking is facing several possible financial performance risks. For these reasons, a research is needed to analyse the impact of COVID-19 outbreak on banking’s financial performance in Indonesia, through analysing the conventional banks’ financial reports using financial ratios, namely the ratio of Non-Performing Loan (NPL) and Return on Asset (ROA). This research is a quantitative one with a descriptive approach. The data taken were quarterly data throughout the year of 2019 and 2020. The data were processed with paired sample t-test using SPSS. The results of the data processing show that there are significant differences on Return on Asset (ROA), before and during the pandemic. But the result of the Non-Performing Loan (NPL) data processing shows that there is no significant difference before and during the COVID-19 pandemic.