Review the performance of the ROA and ROE ratio of PT Bank Sumut compared to the performance standards set by Bank Indonesia

Oct 13, 2025 by talynt.org 148 views

ROA (Return on Asset) and ROE (Return On Equity) Ratio Analysis at PT Bank Sumut Period 2020 - 2022

Understanding the Importance of ROA and ROE Ratio Analysis

The income statement is one of the operational activity measuring devices that can provide an overview of a company's financial performance. One way to assess the efficiency of financial performance is to use profitability ratio analysis. Two ratios that are often used as indicators to measure financial performance are ROA (Return on Asset) and ROE (Return on Equity). In this context, this article aims to analyze ROA and ROE ratios at PT Bank Sumut for the 2020 to 2022 period, as well as assess the performance of this company based on the standards set by Bank Indonesia.

Research Purposes and Objectives

This study has two main objectives:

Determine the level of ROA and ROE ratio of PT Bank Sumut during the 2020-2022 period. This objective aims to analyze the financial performance of PT Bank Sumut by examining the ROA and ROE ratios for the specified period.
Review the performance of the ROA and ROE ratio of PT Bank Sumut compared to the performance standards set by Bank Indonesia. This objective aims to assess the financial performance of PT Bank Sumut by comparing the ROA and ROE ratios to the standards set by Bank Indonesia.

Methodology and Data Collection

Financial data to be analyzed obtained from the financial statements of PT Bank Sumut published on the company's official website. The data will be processed based on theories related to ROA and ROE, then compared to the average industry and performance standards set by Bank Indonesia.

Results and Analysis of ROA and ROE Ratio

The results of the analysis showed that the Return on Assets (ROA) ratio of PT Bank Sumut had decreased by 0.24% in 2021, but increased by 0.37% in 2022. The average ROA for three years was 2%. This shows that despite fluctuations, in general, PT Bank Sumut is able to maintain a fairly good ROA performance.

On the other hand, the Return On Equity (ROE) ratio also showed a decrease of 1.07% in 2021, followed by a significant increase of 2.83% in 2022. The average ROE for three years was 17.11% . This increase reflects the ability of PT Bank Sumut in generating greater profits than the capital owned.

Interpretation of ROA and ROE Ratio Results

The ROA ratio is a measure of a company's ability to generate profits from its assets. A higher ROA ratio indicates that a company is able to generate more profits from its assets. In this case, PT Bank Sumut's ROA ratio shows a fairly good performance, with an average of 2% for the three-year period.

The ROE ratio is a measure of a company's ability to generate profits from its equity. A higher ROE ratio indicates that a company is able to generate more profits from its equity. In this case, PT Bank Sumut's ROE ratio shows a significant increase in 2022, with an average of 17.11% for the three-year period.

Conclusion and Implications

Based on the performance standards set by Bank Indonesia regulations, PT Bank Sumut's ROA ratio shows a very healthy income rating. In addition, ROE ratio also reflects the same income ranking. Thus, it can be concluded that PT Bank Sumut has good financial performance and is able to meet the expectations set by the regulator. This is a positive indicator for investors and other stakeholders to continue to believe in the performance and prospects of PT Bank Sumut in the future.

Limitations and Future Research Directions

This study has several limitations, including the use of historical data and the reliance on publicly available financial statements. Future research directions may include analyzing the ROA and ROE ratios of other banking companies in Indonesia, as well as examining the impact of macroeconomic factors on the financial performance of PT Bank Sumut.

Conclusion and Recommendations

This article is expected to provide a deeper understanding of PT Bank Sumut's financial performance through relevant ratio analysis and provides added value for readers who want to know more about the profitability of banking companies in Indonesia. The results of this study can be used as a reference for investors, regulators, and other stakeholders to assess the financial performance of PT Bank Sumut and make informed decisions.

Recommendations for Future Research

Future research may include:

Analyzing the ROA and ROE ratios of other banking companies in Indonesia to compare their financial performance.
Examining the impact of macroeconomic factors on the financial performance of PT Bank Sumut.
Conducting a more in-depth analysis of the financial statements of PT Bank Sumut to identify areas for improvement.

Conclusion

In conclusion, this study provides an analysis of the ROA and ROE ratios of PT Bank Sumut for the 2020 to 2022 period. The results show that PT Bank Sumut has good financial performance, with a fairly good ROA ratio and a significant increase in ROE ratio in 2022. This study provides added value for readers who want to know more about the profitability of banking companies in Indonesia.
Q&A: Understanding ROA and ROE Ratio Analysis at PT Bank Sumut

Frequently Asked Questions

In this article, we will answer some of the frequently asked questions related to ROA and ROE ratio analysis at PT Bank Sumut.

Q1: What is ROA and ROE ratio analysis?

A1: ROA (Return on Asset) and ROE (Return on Equity) ratio analysis are two financial metrics used to measure a company's profitability and efficiency. ROA measures a company's ability to generate profits from its assets, while ROE measures a company's ability to generate profits from its equity.

Q2: Why is ROA and ROE ratio analysis important?

A2: ROA and ROE ratio analysis are important because they provide insights into a company's financial performance and help investors, regulators, and other stakeholders make informed decisions. A high ROA and ROE ratio indicates that a company is able to generate more profits from its assets and equity, respectively.

Q3: What are the benefits of using ROA and ROE ratio analysis?

A3: The benefits of using ROA and ROE ratio analysis include:

Identifying areas for improvement in a company's financial performance
Comparing a company's financial performance to industry averages and benchmarks
Evaluating a company's ability to generate profits from its assets and equity
Making informed investment decisions

Q4: How is ROA and ROE ratio calculated?

A4: ROA is calculated by dividing a company's net income by its total assets, while ROE is calculated by dividing a company's net income by its total equity.

Q5: What are the limitations of ROA and ROE ratio analysis?

A5: The limitations of ROA and ROE ratio analysis include:

Reliance on historical data
Sensitivity to changes in accounting policies and estimates
Limited ability to capture non-financial performance metrics

Q6: How can ROA and ROE ratio analysis be used in practice?

A6: ROA and ROE ratio analysis can be used in practice by:

Investors to evaluate a company's financial performance and make informed investment decisions
Regulators to monitor a company's financial performance and ensure compliance with regulatory requirements
Management to identify areas for improvement in a company's financial performance and develop strategies to improve profitability

Q7: What are the implications of ROA and ROE ratio analysis for PT Bank Sumut?

A7: The implications of ROA and ROE ratio analysis for PT Bank Sumut include:

A fairly good ROA ratio, indicating that the company is able to generate more profits from its assets
A significant increase in ROE ratio in 2022, indicating that the company is able to generate more profits from its equity
A positive indicator for investors and other stakeholders to continue to believe in the performance and prospects of PT Bank Sumut in the future

Q8: What are the future research directions for ROA and ROE ratio analysis?

A8: Future research directions for ROA and ROE ratio analysis include:

Analyzing the ROA and ROE ratios of other banking companies in Indonesia to compare their financial performance
Examining the impact of macroeconomic factors on the financial performance of PT Bank Sumut
Conducting a more in-depth analysis of the financial statements of PT Bank Sumut to identify areas for improvement

Conclusion

In conclusion, this Q&A article provides answers to some of the frequently asked questions related to ROA and ROE ratio analysis at PT Bank Sumut. We hope that this article has provided valuable insights into the importance and benefits of using ROA and ROE ratio analysis, as well as the implications of this analysis for PT Bank Sumut.