Analysis of Financial Performance on State-Owned Banks to Stock Prices on the Indonesian Stock Exchange

Abstract :

This study analyzes the impact of the financial performance of State-Owned Banks (BUMN) on stock prices on the Indonesia Stock Exchange (IDX) during the 2020–2024 period, a dynamic timeframe influenced by the COVID-19 pandemic and economic fluctuations. Given the vital role of BUMN banks as a cornerstone of the economy, this research aims to examine how financial ratios, namely Capital Adequacy Ratio (CAR), Non-Performing Loan (NPL), Loan to Deposit Ratio (LDR), and Return on Assets (ROA), affect stock prices. Employing a quantitative approach with secondary data from the IDX and bank financial reports, the study sampled four prominent BUMN banks: PT Bank Mandiri, PT Bank Rakyat Indonesia, PT Bank Negara Indonesia, and PT Bank Tabungan Negara. The findings indicate that, partially NPL and ROA do not significantly influence stock prices, whereas CAR and LDR shows a significant partial influence. Importantly, simultaneously, all four ratios (CAR, NPL, LDR, and ROA) significantly affect BUMN bank stock prices, with the model explaining 69.1% of the stock price variation during the period, highlighting a strong relationship between financial performance and stock price movements.