Analysis of Islamic Banking Financial Performance Before and After Consolidation

Abstract

The banking sector is the main foundation in driving Indonesia's economic growth as an intermediary that connects parties with surplus funds with those who need funds. Amidst these increasingly modern developments, the banking sector often faces various challenges that require banks to improve efficiency, competitiveness, and have strong defenses to face global economic changes. The purpose of this study is to determine the financial performance of Indonesian Islamic banks after consolidation by comparing four periods before and four periods after consolidation. Data was obtained from the financial reports of Bank Bri Syariah, Bank Bni Syariah, Bank Mandiri Syariah, and Bank Syariah Indonesia. The results of testing the variables ROE, ROA, NPF, and BOPO indicate that there were significant changes between the periods before and after consolidation. The period after consolidation showed better conditions, as indicated by an increase in profitability indicators. The results of the study show that the changes that occurred in the company succeeded in driving overall performance improvements and had a positive impact on the stability and operational effectiveness of the company.