ANALYSIS DIFFERENCES HEALTH LEVEL BANKING METHOD YEARS USING THE CAMELS METHOD (Case Study PT. Bank Negara Indonesia (Persero), Tbk)

Similar documents
Management and Business Review Available at

THE EFFECT OF NPL, CAR, LDR, OER AND NIM TO BANKING RETURN ON ASSET

Camel Analysis on Bank Perkreditan Rakyat (Empirical Studies Pt.BPR Intan Jabar)

Dominant Variables That Affect The Level of Profitability in Sharia Banks and Conventional Banks

ANALYSIS OF THE NET WORKING CAPITAL AND WORKING CAPITAL TURNOVER IN INCREASE PROFITABILITY ON PT PERKEBUNAN NUSANTARA III (PERSERO) MEDAN

Banking Health Assessment Using CAMELS And RGEC Methods, Using OJK s Banking Financial Statement Data

Financial Foreign Exchange Bank Analysis Through Strategic and Risk Management Approach

THE EFFECT OF CAR, NPL, LDR, AND INFLATION ON PROFITABILITY OF STATE-OWNED BANKS IN INDONESIA

REVIEW OF ANALYSIS SOURCES AND THE USING OF CASH AT PT PINDAD (PERSERO)

THE EFFECT OF LIQUIDITY RISK AND NON PERFORMING FINANCING (NPF) RATIO TO COMMERCIAL SHARIA BANK PROFITABILITY IN INDONESIA

BALANCE SHEETS As of June 30, 2008 and 2007 (In Millions of Rupiah) CONSOLIDATED DESCRIPTION June 30,2008 June 30,2007 June 30,2008 June 30,2007

THE IMPLEMENTATION OF POJK 45/2015 ON THE BANKING FINANCIAL PERFORMANCE IN INDONESIA : AN ANALYSIS ANNA SARDIANA ALVIEN NUR AMALIA

The Performance Analysis of Merger Banks due to Single Presence Policy in Indonesia with CAMEL ratio

Growth and Performance of Rular Banks

ANALYST MEETING. PT Bank Tabungan Negara (Persero) Tbk. Business & Financial Performances as of September 30, Jakarta, October 23 rd 2017

ANALYST MEETING. PT Bank Tabungan Negara (Persero) Tbk. Business & Financial Performances as of December 31, Jakarta, February 13 th 2018

ANALYST MEETING. PT Bank Tabungan Negara (Persero) Tbk. Business & Financial Performances as of September 30, Jakarta, 25 th October 2018

INVESTOR DECISION MAKING BASED ON FUNDAMENTAL ANALYSES ON SHARE MARKET

ANALYST MEETING. PT Bank Tabungan Negara (Persero) Tbk. Business & Financial Performances as of June 30, Jakarta, July 24 th 2017

ANALYST MEETING. PT Bank Tabungan Negara (Persero) Tbk. Business & Financial Performances as of December 31, Jakarta, February 26 th 2015

CHAPTER 1 INTRODUCTION

ANALYST MEETING. PT Bank Tabungan Negara (Persero) Tbk. Business & Financial Performances as of June 30, Jakarta, July 18 th 2018

Eurasia: Economics & Business, 11(17), November 2018 DOI

EFFECT OF LEVERAGE, INTERNAL FACTORS AND EXTERNAL FACTORS ON FINANCIAL RISK AND FINANCIAL PERFORMANCE COMPANY

Keywords. World s oil prices; inflation; interest rate; Rupiah / US Dollar exchange rate; shares return.

Analysis of Indonesian Islamic and Conventional Banking Before and After 2008

Gilang Ramadhan Fajri Lecturer at Politeknik BBC, Sukabumi

ANALYST MEETING. PT Bank Tabungan Negara (Persero) Tbk. Business & Financial Performances as of March 31, Jakarta, April 17 th 2017

ANALYST MEETING. PT Bank Tabungan Negara (Persero) Tbk. Business & Financial Performances as of June 30, Jakarta, July 25 th 2016

PT Bank Tabungan Negara (Persero) Tbk. Business & Financial Performances as of March 31, 2013

ANALYSIS OF BANK S PERFORMANCE AND EFFICIENCY IN INDONESIA. M. Yasser Arafat Agung D. Buchdadi Suherman

The 7 Smart Collaboration for Business in Technology and Information Industries 2016

ANALYST MEETING. PT Bank Tabungan Negara (Persero) Tbk. Business & Financial Performances as of December 31, Jakarta, February 4th 2016

Effect of Profitability, Size And Debt Policy To Company Value (Study on Business-27 Company Listed On BEI)

BALANCE SHEETS As of September 30, 2008 and 2007 (In Millions of Rupiah)

ANALYST MEETING. PT Bank Tabungan Negara (Persero) Tbk. Business & Financial Performances as of 31 December Jakarta, 30 March 2011

ANALYST MEETING. PT Bank Tabungan Negara (Persero) Tbk. Business & Financial Performances as of 30 Sept Jakarta, Oktober 2011

Analysis of Financial Performance of Local Government through South Tangerang Calculation of Realization Regional Budget

ANALYST MEETING. PT Bank Tabungan Negara (Persero) Tbk. Business & Financial Performances as of 31 March Jakarta, 28 April 2011

Third-Quarter 2003 Result

BANK INDONESIA REGULATION NUMBER: 5/10/PBI/2003 CONCERNING PRUDENTIAL PRINCIPLES IN EQUITY PARTICIPATION THE GOVERNOR OF BANK INDONESIA,

CHAPTER 2 THEORETICAL FOUNDATION. Bank is one of a well-known financial institution in Indonesia. In general,

BANKING INTERMEDIATION, OPERATIONAL EFFICIENCY AND CREDIT RISK IN THE BANKING PROFITABILITY HERRY ACHMAD BUCHORY. EKUITAS Economics College,

BALANCE SHEETS December 31, 2002 and 2001 CONSOLIDATED DESCRIPTION

PT BANK RAKYAT INDONESIA (PERSERO) Tbk BALANCE SHEETS As of March 31, 2007 with comparative figures for 2006 (In millions of Rupiah)

First Half 2005 Performance

Recording, Compilation, Classification, and Reporting Receivables At PT. Pegadaian (Persero)

Effect of Financial Distress Ratio Banking Company in Indonesia Period

PT BANK RAKYAT INDONESIA (PERSERO) Tbk BALANCE SHEETS As of March 31, 2008 and 2007 (In Millions of Rupiah)

The Business Viability of PT Garuda Indonesia

FOCUS RESEARCH. Solid 9M17 Bottom Line PT BANK NEGARA INDONESIA (PERSERO) TBK NEUTRAL 17OCTOBER2017

Financial Performance of Conventional and Syariah Banks: An Empirical Studies in Indonesia

ANALYSIS OF WORKING CAPITAL TURNOVER IMPACT TOWARD PROFITABILITY AND ACCOUNTING IMPLICATION AT PT. MULTI STRADA ARAH SARANA Tbk.

Optimal Capital Structure Analysis for Energy Companies Listed in Indonesia Stock Exchange

Analyst Briefing Full Year 2016 Financial Result

STATEMENTS OF FINANCIAL POSITION PT BANK MANDIRI (PERSERO) Tbk. As at 31 December 2013 and 31 December 2012

BI Rate, Inflation, Exchanges IDR - USD, and Gold on the Index of Kompas 100 in Jakarta Islamic Index Period

B A N K I N D O N E S I A

BALANCE SHEETS PT BANK RAKYAT INDONESIA (PERSERO) Tbk As of March 31, 2018 and 2017

ISLAMIC BANK PREPARATION TOWARD GO PUBLIC

Analysis of Fundamental and Technical Factors to Stock Price on Residential Property Sector Companies Listed in Indonesia Stock Exchange

CHAPTER II LITERATURE REVIEW

Comparative Analysis Of Financial Performance Banking Before And After The Global Economic Crisis In 2008

Financial Performance Analysis Using Economic Value Added (EVA)

STATEMENTS OF FINANCIAL POSITION PT BANK MANDIRI (PERSERO) Tbk. As at 31 March 2014 and 31 December 2013

PT Bank Tabungan Negara (Persero) Tbk. Business & Financial Performances as of 30 June 2010

BALANCE SHEETS PT BANK RAKYAT INDONESIA (PERSERO) Tbk As of September 30, 2018 and Desember 31, 2017

Analyst Briefing First Half 2017 Financial Results

STATEMENTS OF FINANCIAL POSITION /BALANCE SHEETS PT BANK MANDIRI (PERSERO) Tbk. As at 30 June 2012 and 31 December 2011

THE ANALYSIS OF CREDIT POLICY DEVELOPMENT IN BANK AAA (CASE OF IMPLEMENTATION NEW POLICY ARCHITECTURE)

FOCUS RESEARCH NEUTRAL. Good Result but The Threat of NPL Risk Increases 30 OCTOBER 2018

Dividend Policy and Stock Price to the Company Value in Pharmaceutical Company s Sub Sector Listed in Indonesia Stock Exchange

ANALYSIS THE INFLUENCE OF EFFECTIVENESS INTERMEDIATION FUNCTION BANKS ON EFFICIENCY BANK

Herizon Department of Management, Sekolah Tinggi Ilmu Ekonomi Perbanas Surabaya, Indonesia

BANK INDONESIA REGULATION NUMBER: 5/ 8 /PBI/2003 CONCERNING APPLICATION OF RISK MANAGEMENT FOR COMMERCIAL BANKS THE GOVERNOR OF BANK INDONESIA,

STATEMENTS OF FINANCIAL POSITION PT BANK MANDIRI (PERSERO) Tbk. As at 31 December 2012 and 2011

SISKA WILLY. Ekuitas School of Business (STIE Ekuitas), Bandung, Indonesia

CHAPTER 1 INTRODUCTION. On July 16th 2010, Media Indonesia wrote about the profit of Bank BTN.

BALANCE SHEETS As of March 31, 2005 and 2004 (In Millions of Rupiah)

rebounded by 28% 2.8% category of Rp % Loan which was higher account grew trillion. Given higher growth ratio 169%

BANK INDONESIA REGULATION NUMBER 6 / 9 /PBI/2004 CONCERNING THE SUBSEQUENT ACTION FOR SUPERVISION AND DESIGNATION OF BANK STATUS

PT Bank Central Asia Tbk Annual Report

Analyzing Local Revenue in Local Otonomy Implementation towards Self-Reliance of Samarinda Municipality

Financial Management of Government (State) Universities in Indonesia

International Journal of Social Science and Economic Research

Value at Risk on Composite Price Share Index Stock Data

Model of the Determination of the Feasibility of Making Loans to Members at HIPPATAS Credit Cooperative Tasikmalaya

Information System Model of Health Level Assessment of Sharia Rural Bank in Indonesia

INFLUENCE OF DIVIDEND ANNOUNCEMENT IN LQ45 COMPANY TOWARD SHARES RETURN BEFORE AND AFTER EX-DATE DEVIDEND IN INDONESIA STOCK EXCHANGE (IDX)

Policy Identification of the Working Capital Management of Medium-Sized Business

Correspondence: Priyono, Post Graduate Management Program, Universitas Bina Darma, Palembang, Indonesia.

Financial Performance Banking Model in Indonesia Before and After Implementation of PBI No. 13/1/PBI/2011: Risk Profile Bank Regional Development

2004 Full Year Performance

The Effect Of Intellectual Capital On Non Performing Financing And It s Implication Toward Financial Performance Of Sharia Common Banks

A COMPARATIVE STUDY OF FINANCIAL PERFORMANCE OF BANKING SECTOR IN BANGLADESH AN APPLICATION OF CAMELS RATING SYSTEM

BALANCE SHEET On March 31, 2012 and December 31, 2011 (In Million Rupiah)

S T A T E M E N T S O F F I N A N C I A L P O S I T I O N As at 30 September 2018 and 31 December 2017 (in million Rupiah)

The Influence of Financial Ratio Analysis tq Predict Banking Companies Profit

BALANCE SHEET On September 30, 2012, and December 31, 2011 (In Million Rupiah)

Effect of Macroeconomic Indicators toward Government Bonds Price in the Secondary Market

Transcription:

ANALYSIS DIFFERENCES HEALTH LEVEL BANKING METHOD YEARS 2006-2008 USING THE CAMELS METHOD (Case Study PT. Bank Negara Indonesia (Persero), Tbk) Julistia Tri Murti 1, Teddy Oswari 2 1,2 Faculty of Economic, Gunadarma University, Indonesia 1,2 E-mail: thiyahebatbanget@yahoo.com, toswari@staff.gunadarma.ac.id Abstract The bank is a financial institution that influences economic growth in Indonesia. Banks have the market share of 80% of the existing financial system. Because the size of the role of banks in Indonesia, the decision makers need to undertake an adequate evaluation of performance. One of the main sources of indicators that are used as the basis of performance assessment is a financial bank concerned. Analysis tool in this research using a method that consists of CAMELS Capital (CAR), Asset (PPAP and NPL), Management (Management), Earning (NPM), Liquidity (LDR), and Sensitivity to Market Risk (or capital reserve which was formed to the fluctuation of interest rates and exchange rate fluctuations). Methodology in this research using the data secondary aspects of the Capital, Asset, Liquidity, Earning and Sensitivity through the financial reports that banks have been in publication. For aspects of management, using primary data obtained through questionnaire research. The six variables are analyzed and compared in the period 2006 to 2008. The results of research show for the year 2006 to year 2008 BNI still in the bank healthy. Asset quality shows NPL fewer than 5%. Quality level of performance management to grow. Rentability aspects of the occurrence of a significant increase in the aspects and sensitivity to market risk, interest rate fluctuation component entry in the bank healthy. Keywords: health care banking, camels, analysis INTRODUCTION Bank is one of the financial institutions that have an important role in the economy of a country. As an intermediary agency between the parties who have excess funds to the parties that need the funds, the bank needed a healthy financial performance, so that the intermediation function can run smoothly. Like humans, where health is the most important thing in his life. A healthy body will increase job skills and other abilities. Similarly, banking, as one financial institution, the bank must always be assessed in order to remain vibrant health in serving its clients. One factor that must be considered by the bank to be able to continue to live is defense performance (financial condition) bank. Bank health assessment conducted every year. For banks whose health continues to increase not a problem, because that is what is expected and so maintained her health. However, for banks which continuously unhealthy may have to get direction or sanction of Bank Indonesia as the supervisory and bank supervisors. Bank Indonesia may be advised to make management changes, merger, consolidation, acquisition or even if it dilikuidir bank's condition was severe. Banking soundness can be analyzed using methods Camels (Capital, Assets, Management, Earning, Liquidity, and Sensitivity to Market Risk). Capital is based on the

assessment of capital owned by the bank. Assets are based on the assessment of asset quality are owned by the bank. Management is the assessment based on general management and implementation of risk management systems are owned by the bank concerned. Earning is based on the assessment of a bank's ability to generate profits. Liquidity is the assessment based on the ability of banks to meet their obligations. While sensitivity to market risk is the assessment of the sensitivity of the respective bank to market risk. Based on the background described above, there are some important issues of how differences in health levels of PT. Bank Negara Indonesia (Persero) Tbk and whether the performance of PT. Bank Negara Indonesia (Persero) Tbk is in conformity with sound banking standards according to Bank Indonesia. Authors limit the problem by examining the health PT. Bank Negara Indonesia (Persero) Tbk period year 2006-2008. Financial ratios used in the ratio of Camels. Namely Capital (CAR), Assets (PPAP and NPL), Management (management), Earning (NPM and BOPO), Liquidity (LDR), and Sensitivity to Market Risk (capital or reserves established to deal with fluctuations in interest rates and capital or reserve formed to deal with fluctuations in exchange rates). For aspect Capital, Assets, Earning, and Liquidity, the author uses the ratio of already published. The purpose of this research is to determine and analyze the differences in health levels of PT. Bank Negara Indonesia (Persero) Tbk years 2006-2008. RESEARCH METHOD This study uses data in the form of financial statements PT. Bank Negara Indonesia (Persero) Tbk period year 2006-2008 which was the publication and use in primary data that can be from filling out the questionnaire by the employees of PT. Bank Negara Indonesia (Persero) Tbk branch office in South Jakarta area. Variables used in this study is based on the calculation of Camels. Variables studied are: aspects of capital (capital), asset-quality aspects (assets), aspects of management (management), aspects of profitability (earnings), aspects of liquidity (liquidity), aspects of sensitivity to market risk (sensitivity to market risk). The data obtained through the method required libraries. Is by reading books related to the issues discussed as well as through several websites related to this research. The author also conducted direct observations in the field. Ie visit to a branch office of PT. Bank Negara Indonesia (Persero) Tbk in South Jakarta area to distribute the questionnaire. To measure the results of the employee response to the questionnaire was distributed, used Likert's scale. DISCUSSION

Aspect Table 1 Recapitulation Performance PT. Bank Negara Indonesia (Persero) Tbk. Year 2006-2008 Using Camels method Component Ratio Ratio Change 2006 2007 2008 Year 2006-2007 Year 2007-2008 Capital CAR 15,95 % 17,65 % 14,38 % up 1,7 % down 3,27 % Asset PPAP 100,00 % 116,48 % 141,36 % up 16,48 % up 24,88 % NPL 10,47 % 8,18 % 4,96 % down 2,29 % down 3,22 % Management Management 20,36 % 20,83 % 21,47 % up 0,47 % up 0,64 % Earning NPM 5,19 % 4,99 % 6,26 % down 0,20 % up 1,25 % BOPO 84,79 % 93,04 % 90,16 % up 8,25 % down 2,88 % Liquidity LDR 48,98 % 60,56 % 68,61 % up 11,58 % up 8,05 % Sensitivity to Market Risk Potential Loss Suku Bunga Potential Loss Nilai Tukar 34,47 % 26,96 % 30,54 % down 7,51 % up 3,58 % 30,93 % 30,52 % 35,56 % down 0,41 % up 5,04 % Based on the performance summary table, see some changes in the quality of the performance of PT. Bank Negara Indonesia (Persero) Tbk. which occurred during the years 2006-2008. In the aspect of capital, CAR years 2006-2007 an increase of 1.7%. This happens because the total capital and risk-weighted assets rose by a percentage increase which does not differ much. The increase in capital primarily from an increase in core capital as a result of the additional paid-in capital and stock agio. While Capital Risk Weighted Assets (RWA) also experienced an increase driven by credit expansion. While in 2008, CAR declined by 3.27% from the previous year. This decrease occurred because of the large increase in RWA is not in Balance with the amount of capital increase. The greater the percentage of CAR, which banks perform better. Because the percentage of CAR showed the ability of banks to capital in anticipation of asset reduction. In the aspect of quality, value PPAP PT. Bank Negara Indonesia (Persero) Tbk. throughout the year 2006-2008 was always increasing. From year 2006 to year 2007, PPAP increase of 16.48%. Then in the next year, increasing the value of PPAP even reached 24.88%. This increase is caused by the PPAP has been formed is greater than the required PPAP formed and the number continues to increase. PPAP The bigger the better is the bank's financial performance, because the number of PPAP illustrates the ability of banks to achieve a number of productive assets must be established. NPL component values continue to decline. In 2007, its value decreased by 2.29%. And in 2008, the NPL had dropped as much as 3.22%. The decline was due to the success of the restructuring program of PT. Bank Negara Indonesia (Persero) Tbk. and in aid to Indonesia's economic conditions more conducive. Success decrease in NPLs in 2008 to make

the bank into the category of healthy banks if viewed from the NPL component. With the reduction in the NPL ratio means the number of troubled loans smaller. Quality management continues to increase. From year 2006 to year 2007, quality management rose by 0.47%. Following and quality of management increased by 0.64%. The increase is due to the achievement of the implementation of management systems that have been planned to improve services to customers in particular and the achievement of management systems to support banking activities of PT. Bank Negara Indonesia (Persero) Tbk. The more the value of a bank's management, indicating that the quality of management at the bank the better. In the aspect of profitability, the ratio of NPM in the year 2007 down 0.20% compared to the year 2006. This decrease is due to the decrease in the amount of net income from year 2006 to year 2007. But the decline in this ratio is not too large because in Balance with the increase in operating income. This ratio also decreased due to non optimal expansion of the loan, so excess funds owned by third parties placed on the placement of securities and the yield is relatively low. But in 2008, the ratio of NPM succeeded in improving by 1.25%. This increase occurred due to an increase in the number of operating income in the year 2008. The greater the ratio of bank NPM means better performance because they show that the amount of profit gained increasing. BOPO ratio from year 2006 to year 2007 experienced a significant increase, in the amount of 8.25%. This is because of the increase in operational costs greater than the increase in operating income. But in 2008, PT. Bank Negara Indonesia (Persero) Tbk. BOPO managed to reduce the ratio of 2.88%. This decrease is due to the decrease in operational costs and also in Balance with the increase in the amount of operating income large enough than the previous year. The smaller the ratio BOPO means the bank's financial performance to be better because they show operating income is greater than the operational burdens to bear the bank. In the aspect of liquidity, LDR PT. Bank Negara Indonesia (Persero) Tbk. in 2006 is still less than the minimum healthy banks by Bank Indonesia. However, this situation can be overcome with good, visible from the increasing number of LDR of 11.58% in 2007 and increased 8.05% in the next year. LDR increasing the bank's performance illustrates that the better because it states how much the bank's ability to pay back a withdrawal does depositors (customers) by relying on a given credit as a source of liquidity. For the aspect sensitivity to market risk, the amount of potential loss rate in 2007 dropped by 7.51%. This is because the increase of capital for greater market risk and is not in Balance with the amount of potential loss in interest rates. The amount of this ratio had increased in the year in 2008, which increased by 3.58%. This increase occurred because of the increase in the number of core and supplementary capital, and helped by a decline in capital for market risk. The greater the value Loss Potential, the better the Bank's financial performance. So it is with potential exchange rate losses. The value of this ratio fell from year 2006 to year 2007. The decline occurred not too much, only by 0.41%. This is due to the increase in capital for market risk is high. In 2008, the value of potential loss rate is higher than the previous year. Increase occurred for 5.04%. This is due to reduced capital used to anticipate the market risk. The greater the Potential Loss describes the exchange rate that the bank's performance the better. Calculations showed that in the can, be seen that most of the health level assessment ratio at PT. Bank Negara Indonesia (Persero) Tbk. in accordance with the provisions of Bank Indonesia, namely the attachment BI Regulation Circular No. 6/23/DPNP dated May 12, 2004 Health Assessment of Bank Rate.

CONCLUTION Generally located on the banks performance composite rankings equated with 1 or 2 with a composite ranking predicate healthy banks in accordance with the provisions of Bank Indonesia based on Bank Indonesia Circular Letter No.. 6/23/DPNP dated May 31, 2004 in the Appendix 2A - 2F. Banks in this category, capable of overcoming the negative effects of economics conditions and the financial industry. Bank still has some small weaknesses, such as state of the NPL in 2006 and in 2007 in the amount exceeds the maximum limit. The amount of LDR in the year 2006 is also still less than a healthy bank limits stipulated by Bank Indonesia. However, these weaknesses may be overcome by routine actions, so that banks categorized "Healthy". From the results of the assessment method Camels at PT. Bank Negara Indonesia (Persero) Tbk. obtained satisfactory results. Board, employees, and other parties concerned from the bank must keep and improve the performance of the bank. REFERENCES Bank of Indonesia website: www.bi.go.id Bank of national Indonesia website: www.bni.co.id Dendawijaya, Lukman.2003.Manajemen Perbankan. Ghalia Indonesia, Jakarta Kasmir.2008.Analisis Laporan Keuangan. PT. Raja Grafindo Persada, Jakarta Myer.2000.Financial Statement Analysis. Mc Graw Hill Salemba Empat, Jakarta S. Munawir.2001.Analisa Laporan Keuangan. Universitas Gadjah Mada, Yogyakarta