Evaluating the impact of mergers and acquisitions on bank performance: The case of BMCE-BOA

Abstract

This study examines the impact of mergers and acquisitions (M&A) on banking performance, taking as a case study the strategic merger between Bank of Africa (BOA) and Banque Marocaine du Commerce Extérieur (BMCE), now united under the name BANK OF AFRICA BMCE GROUP. Drawing on empirical analysis and advanced econometric models, such as the Markov switching model (MSM), this research evaluates the evolution of return on assets (ROA) and return on equity (ROE) before and after the merger. The results reveal an initial increase in financial performance, followed by long-term variability, highlighting the challenges of sustaining post-merger gains. This study enriches understanding of the potential synergies and inherent limitations of M&A in the banking sector, while highlighting the crucial importance of well-planned integration strategies. The conclusions provide practical recommendations for decision-makers, strategists and regulators seeking to maximize the benefits of consolidations in a changing global financial environment.