Abstract

This research examined whether financing growth and CAR affect ROA with NPF as a moderating variable of Sharia commercial banks. To address various potential answers, this research employed a quantitative methodology by analyzing financial data from Islamic commercial banks registered with the OJK during the period of 2011-2020. Sample selection was conducted using the purposive sampling method, resulting in the selection of 6 Islamic commercial banks as the sample. The data were analyzed using moderated regression analysis (MRA). The results of this research indicated that financing growth has a positive and significant impact on ROA,CAR has a positive and significant impact on ROA, NPF is not capable of moderating the influence of financing growth on ROA, and NPF is capable of moderating by weakening the influence of CAR on ROA. These findings contribute to Islamic commercial banks effectively channelling financing and achieving efficiency in CAR, thereby enhancing financial performance. Keywords: ROA, financing growth, CAR, NPF

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