Post-Merger Performance in Financial Service Industry: A Case of the Republic of Serbia

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Dejan Erić
Ivan Stošić
Vuk Dapčević


The main objective of this paper is to analyze key financial performance indicators in certain financial institutions after mergers and acquisitions (M&A) with foreign organizations in the Republic of Serbia. The main actors in these M&A activities were banks. Our research and analysis covers the period from 2002 when M&A processes were intensified by the end of 2017. The results obtained indicate that the arrival of foreign banks led to the consolidation of the Serbian financial services market. Numerous strategic advantages have been achieved and lot of weaknesses from the paste have been eliminated. However, when analyzing the most important profitability ratios (ROA, ROE, NIM), a slightly different picture is obtained. Compared with the banks that came through greenfield investments and a group of domestic banks, this group of banks made slightly lower performances.

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