What Drives Bank Financial Performance? The Role of Liquidity, Leverage, and Asset Efficiency in Indonesian Banking

This study examines the relationships of liquidity, leverage, and asset efficiency with financial performance in five Indonesian listed banks BNI, Mandiri, BRI, BTN, and BCA over 2018-2022 (25 bank-year observations). Using the original multiple linear regression results, liquidity (CR) and asset efficiency (TATO) show positive associations with return on investment (ROI), while leverage (DER) shows a negative association. The joint model is statistically significant in the reported SPSS output. The study contributes a focused comparison between four state-owned banks and one major private bank across the pre-pandemic, pandemic, and recovery periods, bringing together three balance-sheet and activity dimensions in a single empirical framework. For bank managers, the findings underscore the need to balance short-term liquidity, funding structure, and revenue-generating use of assets rather than optimize any ratio in isolation. Because the sample is limited and the design is observational, the results describe sample-specific associations rather than causal effects or the banking industry as a whole