Financial Performance Management of The Bank

Abstract:  The  objective  of  this  paper  is  to  provide  a  theoretical  review  and  a  complete description about financial performance management of the bank. Method used in this re-view is the study of literature or theoretical studies. Result of this review indicates that (1) bank’s financial performance is measured with some parameters such as Earning per Share (EPS), Return on Equity (ROE), Return on Asset (ROA), revenue growth, loan growth, net income growth compared to profit planning,  saving growth, Return on Investment (ROI), and  Net  Present  Value  (NPV);  (2)  financial  parameters  are  measured  depending  on  ac-counting  methods  or  treatments  used  to  prepare  the  financial  statement  of  the  bank;  (3) Financial ratio is the comparison of two variables of financial data to explain the relation-ship between those two; (4) Some financial ratios are used by an analyst to measure finan-cial performance, such as: Profitability Ratio, Liquidity Ratio, Solvability Ratio, Activity Ratio, Growth Ratio, Market Value Ratio, and Economic Value Added; (5) The analysis over these ratios is fulfilling not only the internal interest but also external interest of the firm, because it is useful (a) to compare the firm with other firm at similar business sector, (b) to compare with other at different business, and (c) to compare the performance at different period of time.
Keywords: management, performance, financial, bank
Author: Pompong Budi  Setiadi
Journal Code: jpmanajemengg140001

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