Financial Performance Assessment of Bank Syariah Indonesia Using Economic Value Added

Purpose: This study analyzes the financial performance of PT Bank Syariah Indonesia Tbk. over 2021–2023 using the Economic Value Added (EVA) method, which explicitly incorporates the full cost of capital to assess the creation of true economic profit.

Research Methodology: A quantitative descriptive research design was employed, using secondary data from BSI’s audited annual reports (2021–2023) accessed via the official investor relations portal. Economic Value Added (EVA) was calculated through four steps: (1) Weighted Average Cost of Capital (WACC); (2) Invested Capital (IC); (3) Capital Charges (CC = WACC × IC); and (4) EVA = NOPAT − CC. Data were processed in Microsoft Excel.

Results: BSI recorded positive EVA in 2021 (IDR 247,612 million) and 2022 (IDR 155,922 million) but a sharply negative EVA in 2023 (IDR −2,812,434 million). The 2023 decline was driven by a near-tripling of WACC (4.06% → 10.30%), increasing Capital Charges (IDR 12,727,290 million), which exceeded NOPAT (IDR 5,919,577 million), despite continued profit growth.

Conclusions: The negative EVA in 2023 highlights that the substantial rise in cost of capital outpaced operating profit, emphasizing the critical impact of WACC on firm value creation even when NOPAT increases.

Limitations: This study is limited to PT Bank Syariah Indonesia Tbk. during 2021–2023 and focuses exclusively on financial performance assessment using the EVA method.

Contributions: This study contributes to the literature by applying EVA analysis to Indonesia’s largest post-merger Islamic bank, providing empirical evidence of economic value creation and destruction, and highlighting the critical influence of WACC and capital structure on shareholder wealth.