During the Pandemic, Bank Performance Continues to Improve

Covid-19 is a virus that first occurred in the city of Wuhan, Hubei Province, China on December 31, 2019. Indonesia is a country that confirmed the Covid-19 Virus on Monday, March 2 2020. The Covid-19 pandemic that hit all countries including Indonesia did not impact not only on the health of citizens, but also on companies in Indonesia. Many companies are experiencing difficulties as a result of the Covid-19 pandemic, the termination of employment by several companies has an impact on unemployment. Quoted from Tribun Medan - The results of a national survey in mid-July on the impact of Covid-19, showed that there were three sectors that experienced a decline in income including companies in the accommodation and food and beverage sector, and the service sector also experienced the impact of Covid-19.

The decline in performance also affected companies with different sectors such as banking. Banking as a company whose one dimension is profit-oriented also makes financial performance one of the indicators of success. What is banking profitability like in the midst of a pandemic? What are the strategies or efforts taken by banks to further increase their profitability? The banking sector is one of the sectors that has been in the spotlight in the midst of the Covid-19 pandemic.

According to GDP growth data released by BPS, it shows that in the second quarter of 2020, the financial services sector decreased by -10.32% compared to the previous quarter. This decrease is considered reasonable, because of the policies implemented to suppress the spread of COVID-19. The economic slowdown that occurs can trigger an increase in the NPL (non-performing loan) of banks as a result of the inability or delay of debtors in paying their obligations to banks (credit).

By:
Inneke Octaviani
M. Mundzir
Master of Management Student at UHW Perbanas Surabaya

Published on Radar Surabaya, read more here