The Effect of BOPO, NPF, CAR, FDR and CIR on Return on Assets (ROA) at Bank Syariah Indonesia (BSI) Before and After the Merger

The purpose of this research is to determine how the impact of Operational Expenses on Operating Income (BOPO), Non Performing Financing (NPF), Capital Adequacy Ratio (CAR), Financing to Deposit Ratio (FDR), and the Cost to Income Ratio (CIR) affect Return on Assets (ROA) on Bank Syariah Indonesia (BSI) Pre and Post Merger. The merger of Bank BRI Syariah, Bank BNI Syariah, and Bank Syariah Mandiri into BSI in February 2021 aimed to enhance operational efficiency, strengthen capital, and expand the market share of Islamic Banking. However, the debate on the effectiveness of this merger in increasing profitability continues. This study is quantitative in nature, and it employs multiple linear regression analysis alongside a comparative approach to examine the periods before and after the merger, 2017–2020 and 2021–2024, respectively. It was found that in both periods, BOPO adversely impacted ROA significantly and NPF and FDR’s effects before merger became non-significant in the post-merger period while CAR and CIR remained insignificant in both periods. This research adds to the debate on the impact of mergers on Islamic banking performance and informs BSI’s management and policymakers on operational and profitability post-merger targets.