Abstract
This study aims to describe the performance of Bank Papua after diversification and to analyze the effect of diversification strategies on the performance of Bank Papua. This research is a quantitative study with a population of 37 Bank Papua branch offices throughout Indonesia. The data source used is secondary data in the form of financial reports for 2016-2018. Data analysis using descriptive analysis and linear regression. The results showed that the diversification strategy carried out by Bank Papua had a significant and negative effect on the performance of Bank Papua as indicated by a significance value of 0.038 (p <0.05) and a value of t = -2.086. The significant and negative effects of the diversification strategy also apply to each bank performance variable based on LDR (influence magnitude of 5.9% and significance of 0.010), ROA (influence size of 3.6% and significance of 0.047), NPL (magnitude of influence of 3.6%. and a significance of 0.046), and CAR (magnitude of influence 3.9% and significance 0.038). It can be concluded that the higher the diversification, the lower the bank's performance.
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