Comparison between bank performance of commercial bank, state owned bank, and foreign owned bank in Indonesia during the period 2005–2009

The purpose of this study is to analyze the performance of commercial banks, state owned banks, and foreign owned banks. Forexamining the effect of variablescapital adequacy ratio, operating expenses to operating income, net interest margin, loan to deposit ratio onreturn on assetwithin the study period 2005–2009, data is analyzed by using regression analysis.

Based on the results of the descriptive analysis, it can be concluded that for the study period 2006–2009, the highest Return on Assetwasachieved by foreign owned bankswhile in 2005the highest ratio wasreached by state-owned banks. During the study period 2005–2009,the highest Net Interest Margin wasachieved by state-owned banks, followed by commercial banks and foreign owned banks. Within the period 2005–2009, the highest operating expenses to operating incomeratio wasreached by state-owned banks, followed by commercial banks then foreign owned banks.

The highest loan to deposit wasreached by foreign owned banks in 2006–2009, while in 2005 made by commercial banks. The highest capital adequacy ratio during the period 2005–2009 wasachieved by foreign owned banks, followed by commercial banks and state-owned banks. Meanwhile, based on the results of the regression analysis, the study can be concluded that the capital adequacy ratio and loan to deposithave positive significant effect on profitability return on asset, while the operating expenses to operating incomeand net interest margin have negative significant effect on return on asset.