Analysis of the Effect of the Merger of BUMN Syariah Banks on Company Profitability

Abstract

Three state owned sharia banks including Bank Mandiri Syariah (BSM), Bank Negara Indonesia Syariah (BNIS) and Bank Rakyat Indonesia Syariah (BRIS) are planned to be merged by the government. On February 1, 2021, the three state-owned Islamic banks merged to become Bank Syariah Indonesia (BSI). As a new milestone in the strength of the national economy, the merger was carried out by the government as a commitment and effort to improve the sharia economy. In the long run, it will push Indonesia to become a universal Islamic financial center. The purpose of this study was to determine the level of profitability of Bank Syariah Mandiri, Bank Rakyat Indonesia Syariah, and Bank Negara Indonesia Syariah before and after joining as BSI. The method used in this study is a descriptive qualitative method, by calculating profitability ratios such as Operating Profit Margin, Net Profit Margin, Return On Assets, Return On Equity, and Return On Investment which are obtained from the annual reports of Bank Syariah Mandiri, Bank Negara Indonesia Syariah and Bank Rakyat Indonesia Syariah for 2019-2020 and an annual report for 2021 for Bank Syariah Indonesia (BSI). Based on the calculation results, the overall comparison of the profitability ratios for 2019-2021 before and after the merger has increased, because the advantages of each BUMN Islamic bank which are then combined will have a good impact on the company's performance.