Comparative Analysis of NPL and NPF of Consumer Credit on the Financial Performance of Bank BTN and BTN Syariah

Abstract

This study aims to analyze the differences in the level of non-performing loans/financing in the consumer segment between Bank Tabungan Negara (Bank BTN) and BTN Syariah, and to examine the effect of Non-Performing Loans (NPL) and Non-Performing Financing (NPF) on bank financial performance. The study was conducted within the context of the dual banking system in Indonesia, which allows for differences in risk characteristics between conventional and Islamic banks due to differences in contract mechanisms, product structures, and customer risk profiles. The research approach uses quantitative methods with a comparative and explanatory design. The data used are secondary data in the form of published financial reports of Bank BTN and BTN Syariah for the period 2015–2024. The analysis was conducted using descriptive statistics, the Shapiro–Wilk normality test, a difference test (independent sample t-test or Mann–Whitney U Test), and OLS time series regression on each bank by including a COVID-19 dummy control variable to capture the pandemic shock. The results show that there is no significant difference between Bank BTN's NPL and BTN Syariah's NPF of consumer credit during the study period. Furthermore, Bank BTN's NPL and BTN Syariah's NPF were shown to negatively impact each bank's ROA, although the level of significance varied across models. This research provides practical implications for banking management to continuously strengthen credit/financing risk management, improve the quality of the underwriting process, strengthen early warning systems, and optimize restructuring strategies and asset quality monitoring to maintain stable bank profitability. Academically, this research enriches the literature on the relationship between NPL and NPF and financial performance in the context of Indonesia's dual banking system.