FINANCIAL PERFORMANCE EVALUATION OF BANK BPD BALI BASED ON PROFITABILITY RATIOS(2020-2024 PERIOD)

Abstract

BPD Bali plays a strategic role in regional economic development. Therefore, it is essential to maintain healthy and sustainable financial performance to support regional economic stability and growth. This study aims to evaluate the financial performance of Bank Pembangunan Daerah (BPD) Bali based on profitability ratios, namely Return on Assets (ROA), Return on Equity (ROE), Net Interest Margin (NIM), and Operating Expenses to Operating Income (BOPO) during the 2020–2024 period. The research approach used is descriptive quantitative with evaluative analysis. Data are sourced from Bank BPD Bali's annual financial reports, which are processed to calculate profitability ratios and compared with Indonesian banking industry standards. The analysis was conducted to assess the bank's ability to generate profits and its operational efficiency. The results show that BPD Bali's ROA and ROE are in the "Very Healthy" category, with averages of 2.04% and 17.22%, respectively, indicating effective asset and capital management. While the NIM fluctuated significantly, particularly in 2022–2023, the five-year average of 3.90% is considered "Healthy." Meanwhile, BOPO (Operating Inefficiency) showed high operational inefficiency, with an average of 1,029.45%, categorized as "Unhealthy," indicating significant operating cost pressure relative to operating income. Overall, BPD Bali has consistently generated profits, but operational efficiency improvements are needed to maintain sustainable profitability.