Comparative Analysis of the Financial Performance of Indonesian State-Owned Banks Based on Financial Ratios from 2021-2025

Abstract

State-owned banks play a strategic role in financial intermediation and national economic development, which makes their financial performance a concern for depositors, investors, and fund managers during the post-pandemic recovery. This study describes the development of the financial performance of four conventional state-owned banks listed on the Indonesia Stock Exchange (Bank Rakyat Indonesia, Bank Mandiri, Bank Negara Indonesia, and Bank Tabungan Negara) from 2021 to 2025, compares their performance, and identifies the bank that performed better. A quantitative descriptive-comparative design was applied to secondary data from annual financial reports. Performance was measured with seven ratios: non-performing loan (NPL), loan to deposit ratio (LDR), return on assets (ROA), return on equity (ROE), net interest margin (NIM), the operating expenses to operating income ratio (BOPO), and capital adequacy ratio (CAR). Banks were compared on five-year average ratios, and one point of superiority was assigned to the best bank on each ratio. Profitability ratios generally peaked in 2023 and declined thereafter, while credit quality improved at two banks and operating efficiency at three. Bank Rakyat Indonesia led on four ratios (LDR, ROA, NIM, and CAR) and Bank Mandiri on three (NPL, ROE, and BOPO), whereas Bank Negara Indonesia and Bank Tabungan Negara led on none. Bank Rakyat Indonesia is therefore regarded as the better-performing bank on the seven ratios examined. The findings offer preliminary information for decision-making but are neither an overall assessment of bank soundness nor investment advice.