The Analysis of Financial Performance in Merger Activity: The Case of Sharia Banking Merger in Indonesia

DOI

10.2991/978-2-494069-81-7_21How to use a DOI?

Keywords

Financial Performance Report; Mergers; Financial Ratios

Abstract

This research discusses comparison between of financial performance of State-Owned Islamic Banks before merger, PT. Bank Syariah Mandiri (BSM), PT. Bank Rakyat Indonesia Syariah (BRI Syariah), and PT. Bank Negara Indonesia Syariah (BNI Syariah) with after merger into PT. Bank Syariah Indonesia (BSI) Tbk. The method used descriptive quantitative. Type of data used secondary data, with the company's financial statements for 2020 and in 2021, which was obtained from the official website of Indonesia Stock Exchange www.idx.go.id. Technique used in data collection is literature study. The results showed that average ratio of companies before the merger PT. BSM, PT. BRI Syariah, and PT. BNI Syariah in 2020 is Return On Asset (ROA) 1.26%, Return On Equity (ROE) 10.01%, Capital Adequacy Ratio (CAR) 19.09%, Operating Cost and Operating Income (BOPO) 85.46%, Non Performing Financing (NPF) 1.28%. The value of the financial ratio after the merger (PT. BSI, Tbk) in 2021 showed that values of ROA 1.61%, ROE 13.71%, CAR 22.09%, BOPO 80.46%, and NPF 0.87%. Results of descriptive analysis using statistic process is difference tests have a strong and also positive relationship between the company's financial performance before and after the merger with a significant value 0.00. In addition, there was an improvement in the company's financial performance after the merger into PT. BSI, Tbk. Then with these results, it shows that the company's financial performance after the merger as measured by the ratio of ROA, ROE, CAR, BOPO, and NPF is more better than the company before the merger.

Copyright

© 2022 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Moch. Rusli
AU  - Aning Fitriana
PY  - 2022
DA  - 2022/12/22
TI  - The Analysis of Financial Performance in Merger Activity: The Case of Sharia Banking Merger in Indonesia
BT  - Proceedings of the 1st International Seminar on Sharia, Law and Muslim Society (ISSLAMS 2022)
PB  - Atlantis Press
SP  - 199
EP  - 209
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-494069-81-7_21
DO  - 10.2991/978-2-494069-81-7_21
ID  - Rusli2022
ER  -