A Mcdm-Based Model of Malaysian Commercial Bank Performance Prior to and During Covid-19

Abstract

This study aims to propose the integrated Analytic Hierarchy Process (AHP) with Technique for Order of Preference by Similarity to the Ideal Solution (TOPSIS), VlseKriterijumska Optimizacija I Kompromisno Resenje (VIKOR), and Preference Ranking Organization Method for Enrichment Evaluations II (PROMETHEE II) to calculate the performance of commercial banks in Malaysia before and during covid-19. The information was taken from the financial statements of eight commercial banks in Malaysia for the years 2018 through 2021. Return on Assets (ROA), Return on Equity (ROE), Earnings per Share (EPS), Liquidity, Total Liabilities, and Total Equity are six selected criteria used to evaluate the overall performance of commercial banks. Malayan Banking Berhad (MBB) had the best performance among Malaysian commercial banks, according to the findings of the research. The AHP-VIKOR and AHP-PROMETHEE II methods demonstrated that Malayan Banking Berhad remained number one for four years. Using the TOPSIS methodology, Malayan Banking Berhad is also ranked first for the years 2020 and 2021. In contrast, Alliance Bank had the worst performance among Malaysian commercial banks. Using the AHP-VIKOR and AHP-PROMETHEE II methods, Alliance Bank's ranking has remained unchanged from 2018 to 2021. In addition, the AHP-TOPSIS method only recorded Alliance Bank in last place for 2018 and 2019. The final trend results for the eight commercial banks in AHP-VIKOR and AHP-PROMETHEE II are virtually identical.