This study objective is is to examine and analyze the effect of book to market ratio and
CAMEL ratio on financial performance of banking industry which is listed on
Indonesia Stock Exchange. Data used is secondary data of 20 banking for period 2010-
2014. Total 100 unit data are analyzed by multiple regressions. Research results show
that Banking conditions in Indonesia is health in accordance with CAMEL ratio
standards issued by BI. IFRS convergence impact on banking industry does not only
happen in Indonesia, but also in European banking equally incorporated in G20
countries. Not all variables affect the financial performance of EPS. Variables that
affect EPS are book to market, CAR, ROE, and NPM.