Peeking Beyond Profitability: Effects of Merger and Acquisition on Microeconomic Indicators in Banking Industry

Shafique Ahmed; Suman Talreja; Muzafar Ali Shah; Muhammad Asad; Sakina .

doi:10.58921/jobams.4.1.75

Shafique Ahmed PhD Scholar, Management Sciences, Shaheed Zulifikar Ali Bhutto Institute of Science and Technology, Karachi
Suman Talreja PhD Scholar, Management Sciences, Shaheed Zulifikar Ali Bhutto Institute of Science and Technology, Karachi
Muzafar Ali Shah PhD Scholar, Sindh Madressatul Islam University, Karachi
Muhammad Asad Account Executive, Keep Truckin, Karachi
Sakina . MBA Student, KASBIT Karachi

DOI: https://doi.org/10.58921/jobams.4.1.75

Keywords: Merger & Acquisition, Pre & Post Performance, Growth Strategy, Microeconomic indicator, Financial Sector

Abstract

The purpose of this study is to provide relative information on mergers & acquisition events of banks in Pakistan. To evaluate the profitability and microeconomic factor of banks in Pakistan, financials for thirteen years (2006-2017) were examined with the help of financial ratios. The research applied secondary data which were gathered from the financial statements of banks, and their websites. In this research, every financial decision-making process, ratio analysis by timeline method is most often utilized. The outcomes illustrate that the pre-merger performance of banking sector of Pakistan in the dimensions of profitability and loan/deposits was fairly satisfying. It clarifies that merger activity was unsuccessful in increasing the financial productivity of the bank, but banks become one with other small and the same sized banks simply to increase market shares, to increase their assets and to reveal concealed morals.