Determinants of Bank Profitability Pre and Post Merger: A Case Study of Bank Syariah Indonesia (BSI)
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Abstract
This study aims to investigate the effect of the merger on the financial performance of Bank Syariah Indonesia (BSI). This study uses Return on Assets (ROA) as the dependent variable, while the Capital Adequacy Ratio (CAR), Non-Performing Financing (NPF), and Financing to Deposit Ratio (FDR) are used as independent variables. The research method uses a quantitative approach with a Difference-in-Difference model to compare conditions before and after the merger and to determine the effect of explanatory variables on the dependent variable. The data used are secondary data from BSI's monthly financial reports for the pre-merger period 2018–2020 and the post-merger period 2021–2025. The results show that in the pre-merger period, the NPF and FDR variables significantly influenced ROA, while in the post-merger period, only the CAR variable influenced ROA. This research is expected to serve as a reference for regulators, academics, and the banking industry in formulating consolidation strategies for the Islamic financial sector.
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