BANKING FINANCIAL PERFORMANCE AND SUSTAINABILITY RESILIENCE BEFORE AND AFTER COVID-19: EVIDENCE FROM INDONESIAN STATEOWNED BANKS

Abstract

This study examines the financial performance and sustainability resilience of Indonesian state-owned banks (BUMN) before, during, and after the COVID-19 pandemic over the period 2019–2023. Using a comparative quantitative approach with paired-samples t-tests and panel data analysis, this study analyzes four major state-owned banks: Bank Rakyat Indonesia (BRI), Bank Negara Indonesia (BNI), Bank Mandiri, and Bank Tabungan Negara (BTN), yielding 20 firm-year observations. Financial performance is measured through six key ratios: Return on Assets (ROA), Capital Adequacy Ratio (CAR), Non-Performing Loan (NPL), Loan to Deposit Ratio (LDR), Operational Efficiency Ratio (BOPO), and Net Interest Margin (NIM). Sustainability resilience is proxied by green bond issuance, sustainable finance portfolio size, and the Asia Sustainability Reporting Rating (ASRRAT). The findings reveal significant differences in ROA, NPL, and BOPO before and after COVID-19, while CAR improved notably in the post-pandemic period. All four banks demonstrated growing sustainability commitments, with Bank Mandiri and BRI achieving Platinum ASRRAT ratings by 2023. The results suggest that sustainability practices contributed to financial resilience during the pandemic crisis.