Health Level and Financial Distress Analysis of Bank Aladin Syariah Using The RGEC Method (2020-2024)

Abstract

This study aims to analyze the health level and potential financial distress of Bank Aladin Syariah during the 2020–2024 period using the RGEC method (Risk Profile, Good Corporate Governance, Earnings, and Capital) and the Modified Altman Z-Score model. The research is descriptive in nature with a quantitative approach, utilizing Bank Aladin’s annual financial statements, which are analyzed based on the key RGEC indicators. To detect the risk of bankruptcy, the Modified Altman Z-Score model is applied. The findings reveal that the bank’s health condition experienced significant fluctuations: it was classified as very healthy (PK-1) in 2020 but fell into the less healthy category (PK-4) from 2021 to 2024, although a gradual improvement trend was observed. Meanwhile, the Altman Z-Score results over the five-year period indicate that Bank Aladin remained in the safe zone from financial distress. These findings imply that, although improvements are still needed in operational efficiency and profitability, the bank has maintained strong risk management and capital adequacy. Theoretically, this study contributes to the literature on the longitudinal analysis of Islamic bank health, while practically, it offers valuable insights for regulators, bank management, and investors in formulating policies and strategies to strengthen Islamic banks in the digital era.