THE IMPACT OF COVID-19 ON THE PROFITABILITY OF
PUBLIC BANKS LISTED IN INDONESIA

THE IMPACT OF COVID-19 ON THE PROFITABILITY OF
PUBLIC BANKS LISTED IN INDONESIA

Bank Profitability, ROA, ROE, NIM, Tobin’s Q, Covid-19

Covid-19 has had a significant impact on the economy, especially the financial
industry in developing countries such as Indonesia. This study attempted to
investigate the effect of the Covivirus-19 pandemic on the profitability of
Indonesian public banks. The sample consists of 41 banks registered on the
Indonesian stock exchange between January 1, 2019 and December 31, 2021.
The profitability of a bank is reflected by Return On Assets (ROA), Return On
Equity (ROE), Net Interest Margin (NIM), and TOBINs' Q. Return On Assets
(ROA), Return On Equity (ROE), Net Interest Margin (NIM), and TOBINs'Q
are used as dependent variables in this study. The independent variables are asset
size, deposits, and leverage from bank determinant factors, and exchange rates,
interest rates, Gross Domestic Product (GDP), and new cases of Covid-19 per
month from macroeconomic variables. The analysis revealed that Covid-19 has a
negative impact on bank profitability, but only profitability as evaluated by NIM
has a statistically significant negative impact. This study demonstrates that bank
size or asset size, as well as interest rate, have a significant positive effect on the
profitability of Indonesian banks that are publicly listed.

Emir Fauzi, Tri Oktavia Saraswati, Gracia S. Ugut

https://jurnal.stie-aas.ac.id/index.php/IJEBAR

2022

peri irawan

pdf

english

text