Global Advances in Business Studies
Vol. 2 No. 1 (2023): Global Advances in Business Studies (GABS)

The effect of financial performance on the profit growth of banks listed on the Indonesia Stock Exchange

Verawati, Verawati (Unknown)
Jap, Yustina Peniyanti (Unknown)
Kurniawati, Herni (Unknown)



Article Info

Publish Date
31 Mar 2023

Abstract

This study aims to provide empirical evidence showing how financial performance affects the profit growth of public sector banks. The sample comprises companies in the banking industry listed on the Indonesia Stock Exchange from 2018–2021. The research considers quantitative data from annual reports produced from 2018–2021 using purposive sampling. This research evaluated financial performance as measured by two proxies: CFROA was found to not affect bank profit growth, while ROE did have an effect. This research is expected to contribute to the development of new proxies for measuring banking financial performance. This research will also help banks focus on maintaining financial ratios according to regulations, such as net profit margin, operating costs and operating income, and non-performing loans. Furthermore, profit growth, as a factor that increases credibility, needs to be considered to maintain banking viability and customer and investor trust.

Copyrights © 2023






Journal Info

Abbrev

gabs

Publisher

Subject

Economics, Econometrics & Finance

Description

Global Advances in Business Studies (GABS) is an international, double-blind peer-reviewed, open-access journal published by Ifma Publishing. GABS aims to provide a valuable outlet for research on business-orientated themes and topics. It publishes articles of a multi-disciplinary and ...