<![CDATA[This study aims to analyze the financial performance of a regional development bank using the Capital, Asset Quality, Earnings, and Liquidity (CAEL) approach during the period of 2020-2024. The object of this research is PT Bank Pembangunan Daerah Sumatera Barat. The research employs a quantitative descriptive method using secondary data obtained from the bank’s published annual financial statements. The analysis is conducted by calculating several financial ratios, including Capital Adequacy Ratio (CAR), Non-Performing Loan (NPL), Return on Assets (ROA), Net Interest Margin (NIM), Operating Expenses to Operating Income (BOPO), Loan to Deposit Ratio (LDR), and Loan to Asset Ratio (LAR). The findings indicate that the bank’s capital position is very strong and shows a consistent upward trend over the observed period. In terms of asset quality, the declining NPL ratio reflects an improvement in credit risk management. From a profitability perspective, the bank demonstrates steady growth in earnings, although there is evidence of pressure on interest margins and operational efficiency toward the end of the period. Meanwhile, the liquidity aspect shows an increasing loan distribution ratio, indicating active intermediation, but also suggesting potential liquidity pressure that requires careful management. Overall, the bank’s financial performance can be categorized as stable and improving. However, enhancing operational efficiency and optimizing liquidity management remain essential to ensure sustainable performance in the future.]]>
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