The Analysis Of Bank Financial Performance Using Altman (Z-Score) To Predict Bankruptcy (Study On Listing And Delisting Bank In Indonesian Stock Exchange)

Economic activities are divided into three sectors, consist of Primary economic sector, secondary economic sector, and tertiary economic sector. Banking activities are grouped into tertiary economic sector. Bank in Indonesia expected able to help to control the stability of state’s economy. Banks as financial intermediaries are sensitive to changes. The existence of bank also depends on public trust. When bank experienced bankrupt will damaged public trust and also impacted other banks. Due to decrease the risk of bankruptcy, management should do earlier prediction. Altman (Z-Score) is analysis model to predict the company condition with cut off point to determine bankruptcy criteria. The research goal to know company financial performance can measure company performance in bank sector by using Altman (Z-Score) analysis model for listing and delisting Bank. This study is descriptive research which used quantitative method and case study approach. The result were eight listing bank as research sample, one company had good financial performance in three years observation, two company had good financial performance in two years observation, one company had good financial performance in first year observation, four company had problem in financial performance in three years observation. there were three delisting company as research sample. All delisting banks had good financial performance. It indicated that not at all delisting company had poor financial performance. Good financial performance attracted going concern without company to being delisted and also attracted management to expand business without listed the shares. Company management should concern to company financial ratio, especially ratios in Altman formula because those ratio able to describe the company financial condition. Listing bank should increase the financial performance due to avoid company categorized in grey and potentially bankrupt. Delisting bank should have decision to rescue the business continuity due to avoid bankruptcy