Definition
Operating Expenses to Operating Income Ratio – The Indonesian banking regulator's standard efficiency ratio (Beban Operasional terhadap Pendapatan Operasional), comparing total operating expense (including interest expense and loan-loss provisioning) to total operating income (interest, syariah, and fee income combined). Runs on a broader definition than the more commonly used Cost-to-Income Ratio, so the two aren't directly comparable — a lower BOPO means a bank keeps more of every rupiah of operating income after interest costs and provisioning, not just after non-interest opex. Found In: Financial ratio disclosure (Indonesian OJK-format published statements) Formula:
BOPO = Total Operating Expense (incl. interest expense & provisioning) / Total Operating Income (incl. interest & fee income)