The Influence of Financial Ratios and Qardhul Hasan Financing on Financial Performance in Islamic Banks

Abstract

The financial performance of a bank reflects the level of success in managing resources to achieve its goals. One method of evaluating the financial performance of a bank is by using ROA (Return on Assets). The objective of this research is to identify the impact of Qardhul Hasan Financing and financial ratios on the financial performance of Islamic banks in Indonesia. This study is an explanatory research that utilizes secondary data, specifically annual reports published between 2014 and 2021. The research population consists of all Islamic banks in Indonesia, and a sample of 10 Islamic banks was selected using sampling techniques. Multiple linear regression analysis was used to analyze the data. The findings indicate that overall, the variables QARDH, NPF, FDR, CAR, and BOPO have an influence on ROA as an indicator of financial performance. However, individually, the variables QARDH, NPF, and CAR do not have a significant impact on ROA. On the other hand, BOPO and FDR have a significant impact on ROA.