Analysis of the Impact of Sharia Bank Performance on the Financial Performance of Its Parent Conventional Bank: A Case Study of BSI and Bank Mandiri

Bambang Waluyo (), Indianik Aminah and Herbirowo Nugroho
Additional contact information
Bambang Waluyo: Accounting Departement
Indianik Aminah: Accounting Departement
Herbirowo Nugroho: Accounting Departement

A chapter in Proceedings of the International Conference on Applied Science and Technology on Social Science 2025 (iCAST-SS 2025), 2025, pp 371-378 from Springer

Abstract: Abstract This study aims to analyse the impact of Bank Syariah Indonesia's (BSI) financial performance as a subsidiary on the economic performance of the three conventional banks that own it: Bank Mandiri, the parent bank, as well as BNI Bank and BRI Bank, which are non-controlling owners. This study utilises secondary data from the annual financial statements of BSI, Bank Mandiri, BNI, and BRI for the 2020–2024 period. This study employs a quantitative descriptive approach to examine the relationship between performance indicators, including Caputal Adequacy Ratio (CAR), Return On Assets (ROA), Return On Equity (ROE), Biaya Operasional Pendapatan Operasional (BOPO), Non Performing Financing (NPF), and the ratio of net profit to revenue. The results of the analysis show that BSI’s performance growth is positively correlated with the efficiency and profitability of the three parent banks, as reflected in improvements in the ROA, ROE, and BOPO indicators. These findings imply that strengthening the performance of Islamic entities can support the stability and growth of the overall performance of the banking group.

Keywords: financial performance; conventional bank; non-controlling owners; stability; growth (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-938-4_43

Ordering information: This item can be ordered from
http://www.springer.com/9789464639384

DOI: 10.2991/978-94-6463-938-4_43

Access Statistics for this chapter

More chapters in Advances in Economics, Business and Management Research from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().