DECOMPOSING POST-MERGER PERFORMANCE: A BENCHMARK-ADJUSTED DUPONT ANALYSIS OF BANK SYARIAH INDONESIA

Melati

doi:10.15575/jim.v7i2.59601

Authors

Melati Universitas Nasional, Jakarta, Indonesia

DOI:

https://doi.org/10.15575/jim.v7i2.59601

Abstract

This study evaluates the financial performance of Bank Syariah Indonesia (BSI) over 2017–2024 using DuPont analysis and benchmarking against the Islamic and conventional banking industries. The analysis compares the pre-merger and post-merger periods using pooled-period and annual ratios, compelemented by accounting decomposition, exploratory Mann–Whitney U tests, and sensitivity analysis. The pooled profit margin of BSI went up from 9.96% to 23.53%, while the Return on Equity (ROE) increased from 8.41% to 14.05%. However, asset turnover and the equity multiplier went down, which suggests that the better returns for shareholders came mainly from higher margin, rather than from the greater asset utilization or financial leverage. Industry benchmarking further shows that BSI’s relative profit-margin and return-on-equity positions improved compared to both groups, with the mean annual ROE gap shifting from negative to positive in the merger/post-merger period. In contrast, asset turnover and return on assets remained below both industry benchmarks throughout the observation period. The exploratory pre/post differences did not remain statistically significant after Holm adjustment, while sensitivity checks confirmed the direction of the principal findings under alternative aggregation and observation windows. Overall, BSI exhibited stronger profitability and shareholder returns alongside persistent limitations in asset utilization.

References

Akhavein, J. D., Berger, A. N., & Humphrey, D. B. (1997). The effects of megamergers on efficiency and prices: Evidence from a bank profit function. Review of Industrial Organization, 12(1), 95–139.

AlAli, M. S. (2019). The use of DuPont modified financial model in evaluating the financial performance of Kuwaiti banks. Journal of Banking and Financial Dynamics, 3, 1–9. https://doi.org/10.20448/journal.525.2019.31.1.9

Almazari, A. A. (2012). Financial performance analysis of the Jordanian Arab bank by using the DuPont system of financial analysis. International Journal of Economics and Finance, 4(4), 86–94. https://doi.org/10.5539/ijef.v4n4p86.

Ayaba, M. M., Amo-Bediako, E., & Takawira, O. (2023). Evaluating the financial performance of listed REIT firms in South Africa: A 7-step DuPont model technique. International Journal of Applied, Economics, Finance and Accounting, 17(2), 267–278. https://doi.org/10.33094/ijaefa.v17i2.1146

Ayagre, P., Aboagye, A. Q. Q., Sarpong-Kumankoma, E., & Asuming, P. O. (2024). Bank mergers and acquisitions and the post-merger and acquisition performance of combined banks: Evidence from Sub-Saharan Africa. Cogent Economics & Finance, 12(1). https://doi.org/10.1080/23322039.2024.2319167

Ayustin, I., Renoisty, F., & Sunardi, N. (2023). Analysis of financial performance assessment based on the DuPont system on pharmaceutical industry companies. IDEA: Indonesian Development of Economics and Administration Journal, 2(1), 53–72.

Bansal, R. R. & Singh, N. P. (2024). Pre & post-acquisition effects on financial performance of a bank: Case of IDBI Bank Ltd. IJIRT: International Journal of Innovative Research in Technology, 11(7), 3148–3172.

Behr, A., & Heid, F. (2011). The success of bank mergers revisited: An assessment based on a matching strategy. Journal of Empirical Finance, 18(1), 117–135. https://doi.org/10.1016/j.jempfin.2010.08.006

Brigham, E. F. & Houston, J. F. (2019). Fundamentals of financial management. 15e Edition. Cengage Learning. Boston.

Chyntia, E., Hasra, L. D., Shalawati, Maisyuri, Hikalmi, & Zahara, A. (2025). Analisis kinerja keuangan pada PT Bank Syariah Indonesia, Tbk dengan menggunakan Dupont System periode 2021–2023. Jurnal GICI Jurnal Keuangan dan Bisnis, 17(2), 320–336. https://doi.org/10.58890/jkb.v17i2.447

Chong, B. S. & Liu, M. H. (2009). Islamic banking: interest-free or interest-based? Pacific-Basin Finance Journal, 17(1), 125–144. https://doi.org/10.1016/j.pacfin.2007.12.003

Collier, H. W., McGowan, C. B. & Muhammad, J. (2010). Evaluating the impact of a rapidly changing economic environment on bank financial performance using the dupont system of financial analysis. Asia Pacific Journal of Finance and Banking Research, 4(4), 25–35.

Demirtaş, T. (2024). Islamic Bank's Profitability Analysis with Dupont method: Country cases. International Journal of Social Science and Human Research, 7(11), 8558–8565. https://doi.org/10.47191/ijsshr/v7-i11-62

Endris, H. & Babu, N. K. (2026). Examining financial performance of manufacturing companies: An extended DuPont analysis. Future Business Journal, 12(82). https://doi.org/10.1186/s43093-026-00792-y

Fahlevi, A. R. (2022). Dampak pelaksanaan merger dan akuisisi (M&A) terhadap tingkat efisiensi dan kinerja pasar perusahaan: Studi kasus pada perbankan di Indonesia. Jurnal Akuntansi dan Auditing, 19(2), 204–224. https://doi.org/10.14710/jaa.19.2.204-224

Faizah, I., Apriyani, D., Rahmawati, N., Aulia, V. R. (2024). Analysis a DuPont in assessing performance post-merger BSI finances: 2021-2022. Al-Mashrof: Islamic Banking and Finance, 5(1), 1–16. https://doi.org/10.24042/al-mashrof.v5i1.22632

Fitch Ratings. (2020). Indonesian Islamic banks merger to boost sharia sector. Retrieved from: https://www.fitchratings.com/research/islamic-finance/indonesian-islamic-banks-merger-to-boost-sharia-sector-22-11-2020

Fitriyah, M. H., Akbar, A., Anwar, Ramli, A., & Nurman. (2023). Assessment of financial performance in SOE Bank using the DuPont system method period 2019-2021. CASHFLOW: Current Advanced Research on Sharia Finance and Economic Worldwide. 2(3), 399-406. https://doi.org/10.55047/cashflow.v2i3.624

Gaughan, P. A. (2017). Mergers, Acquisitions, and Corporate Restructurings. Wiley. New Jersey.

Gitman, L. J. & Zutter, C. J. (2015). Principles of Managerial Finance. Pearson Education. Essex.

Hagendorff, J., & Keasey, K. (2009). Post-merger strategy and performance: Evidence from the US and European banking industries. Accounting & Finance, 49(4), 725–751. https://doi.org/10.1111/j.1467-629X.2009.00306.x

Holm, S. (1979). A simple sequentially rejective multiple test procedure. Scandinavian Journal of Statistics, 6(2), 65–70.

Jiang, Y. (2023). Financial analysis of the pharmaceutical industry based on DuPont analysis: Taking Guangzhou Bayunshan Pharmaceutical Group as an example. Advances in Economics, Management and Political Sciences, 54. https://doi.org/10.54254/2754-1169/54/20230874

Kerby, D. S. (2014). The simple difference formula: An approach to teaching nonparametric correlation. Comprehensive Psychology, 3. https://doi.org/10.2466/11.IT.3.1

Mann, H. B., & Whitney, D. R. (1947). On a test of whether one of two random variables is stochastically larger than the other. The Annals of Mathematical Statistics, 18(1), 50–60. https://doi.org/10.1214/aoms/1177730491

Meilani, N. P. R., & Dana, I. M. (2023). Analisis perbandingan kinerja keuangan sebelum, sesudah merger dan akuisisi pada perbankan di Bursa Efek Indonesia. E-Jurnal Manajemen, 12(11), 1163–1183. https://doi.org/10.24843/EJMUNUD.2023.v12.i11.p02

Minz, W. P., Ahamed, S., & Bhowmik, G. (2024). A comparative study on the financial performance of Domestic Systematically Important Banks (D-SIBs) in India using extended DuPont analysis. Vidyasagar University Journal of Commerce, 28, 31–48. https://doi.org/10.62424/vujc.2023.28.00.03

Minz, W.P. and Bhowmik, G. 2024. Effectiveness of consolidation of Bank of Baroda: An empirical study. Research Bulletin. 49(4), 45–58.

Otoritas Jasa Keuangan. (2017–2024). Statistik Perbankan Syariah [Sharia Banking Statistics]. Otoritas Jasa Keuangan.

Otoritas Jasa Keuangan. (2017–2024). Statistik Perbankan Indonesia [Indonesian Banking Statistics]. Otoritas Jasa Keuangan.

PT Bank BRI Syariah Tbk. (2017–2020). Annual reports and financial statements. PT Bank BRI Syariah Tbk.

PT Bank BNI Syariah. (2017–2020). Annual reports and financial statements. PT Bank BNI Syariah.

PT Bank Syariah Indonesia Tbk. (2021–2024). Annual reports and financial statements. PT Bank Syariah Indonesia Tbk.

PT Bank Syariah Mandiri. (2017–2020). Annual reports and financial statements. PT Bank Syariah Mandiri.

Ripai, M., Qur’aini, N. Q., Utami, W. P., & Sunardi, N. (2023). Du Pont system analysis in financial performance of BUMN banking companies listed on The Indonesian Stock Exchange in 2018–2022. Indonesian Development of Economics and Administration Journal, 2(2), 267–.279

Selvi, S. (2023), A study on DuPont model and financial performance of state bank of India before and after merger. Preliminary Reports, Research Square. https://doi.org/10.21203/rs.3.rs-2541657/v1

Subagio, A., Alimudin, A., Nandavita, A. Y., & Lestari, T. A. (2024). Comparative analysis of sharia bank financial performance before and after the merger using the DuPont system. Advance in Islamic Economics, Business and Finance Research: The 1st International Conference on Islamic Banking and Finance 2024, 115–119.

Undang-Undang Republik Indonesia Nomor 10 Tahun 1998 tentang Perubahan atas Undang-Undang Nomor 7 Tahun 1992 tentang Perbankan [Law of the Republic of Indonesia Number 10 of 1998 concerning Amendment to Law Number 7 of 1992 concerning Banking].

Undang-Undang Republik Indonesia Nomor 21 Tahun 2008 tentang Perbankan Syariah [Law of the Republic of Indonesia Number 21 of 2008 concerning Islamic Banking].

Yoshanti, G., & Kurnia, R. (2024). The study of Dupont model and financial performance of Sharia banks. TAMWIL: Jurnal Ekonomi Islam, 10(2). https://doi.org/10.31958/jtm.v10i2.13817