POST MERGER PERFORMANCE OF THE KSE LISTED, SELECTED BANKS OF PAKISTAN

Abstract

Purpose The aim of the study was to analyze the performance of selected banks before merger and after merger in terms of Return on Assets and Return on Equity, of Pakistan. Methodology The study took data from the published annual reports of the selected banks: Summit Bank, Faysal Bank, Samba Bank, A1 Baraka Bank, Standard Chartered Bank. The data was collected 2 years before merger and 4 to 5 years after merger. To analyze the data Independent Samples t Test was used on the SPSS software, to check tire significance of the hypotheses as well. Findings The analysis and results proved that there is no such positive outcome after the merger of banks of Pakistan. It concluded that ROA and ROE did not got impacted after the merger. Practical Implications The outcome of this research may help the decision makers to focus on the places where there is a lack of knowledge for mergers and how to make merger successful. As Pakistan is a developing country, mergers are not a good option here to create any synergy but if importance and attention would be given on the strategies so maybe one day merger will be successful.