Financial Performance Of Islamic Banks Research Articles

Faktor – Faktor yang Mempengaruhi Return on Asset PT. Bank Syariah Indonesia KCP Iskandar Muda

Analysis of profitability developments is one of the indicators carried out by banks to see or detect the magnitude of changes in the results of transactions carried out. Among them, measuring the level of profitability by measuring return on assets (ROA). The reason for using Return on Assets (ROA) to measure bank profitability is because Bank Indonesia, as a banking supervisor, prioritizes the profitability of a bank as measured by assets. Most of its funds come from public deposits. The higher the bank's profit, the better the bank's position on the use of assets. Therefore, ROA is used in this study as an indicator of the financial performance of Islamic banks. Keyword: Profitability, Return on Assets, Islamic Bank

Corporate governance and financial performance of Islamic banks: new international evidence

Corporate governance and financial performance of Islamic banks: new international evidence

Analysis of Sharia Bank Financial Performance in the Digital Era

The digital era has brought significant changes in various industrial sectors, including the banking industry. Sharia banks as one of the financial institutions that adopt sharia principles are also not immune from the impact of this change. This article aims to analyze the financial performance of Islamic banks in the digital era by focusing on aspects such as technological innovation, changes in consumption patterns, as well as the impact on profitability and efficiency. The research method used is descriptive analysis with a quantitative approach, using secondary data from financial reports of Islamic banks registered with the OJK. The research results show that digitalization contributes positively to the financial performance of Islamic banks, although there are challenges that need to be overcome. It is hoped that these findings will provide insight for practitioners and academics in understanding the dynamics of Islamic bank financial performance amidst technological advances.

Innovative and Sustainable Performance of Islamic Bank: Comparing the Financial Ratios between Two Different Organizations in Indonesia

The law that requires every UUS to change into a BUS by 2023 is the background for this research. Financial indicators show that UUS performance is better than BUS so, through this research, the authors will compare the financial performance of Islamic Banks which were previously in the form of UUS, and after changing their business entity to BUS. Currently, in Indonesia, there is thirteen BUS that previously had UUS status. The sampling in this investigation used a purposive sampling technique with two criteria so that two samples were obtained, namely Bank BJB Syariah and Bank BNI Syariah. The observation period was carried out for seven years when the status was UUS and eight years after becoming a BUS. The source of data in this study comes from the financial statements of each bank which contain the ratio of PPAP, FDR, NOM, ROA, and BOPO. This comparative study uses the Mann-Whitney U test non-parametric test analysis technique. The comparative study conducted concluded that there were differences in financial performance before and after the spin-off for the FDR and BOPO ratios, while the PPAP, NOM, and ROA ratios were not found to be different.

Analisis Perbandingan Kinerja Keuangan Bank Syariah dan Bank Konvensional

This study aims to analyze and compare the financial performance of Islamic banks and conventional banks in Indonesia using library research methods. Data sources come from related literature such as scientific journals, articles, previous research reports, and relevant online sources. Bank financial performance is measured through several ratios including capital ratio (CAR), asset quality (NPL), liquidity (LDR), profitability (ROA and ROE), and efficiency (BOPO) which are calculated based on the bank's financial statements. The results of the analysis show that in general the financial performance of both types of banks is in a healthy condition and meets regulatory standards. However, there are differences in performance in several ratios individually. Conventional banks tend to have better performance in CAR, NPL, BOPO, and ROA ratios, indicating better capital quality, assets, operating costs, and profitability. Meanwhile, Islamic banks show better liquidity performance (LDR) and asset growth. However, the difference in performance is not yet fully statistically significant. In general, the financial performance of conventional banks is superior. However, the performance of Islamic banks also experienced an annual increase. To improve competitiveness, Islamic banks need to continue to make improvements, especially in terms of capital, cost management, credit quality, and increasing fee-based products. Both types of banks have developed and operated harmoniously without causing significant financial turmoil. The results of the study are expected to provide a stronger picture of the comparison of the financial performance of Islamic and conventional banks in Indonesia.

Integration of Corporate Governance and Social as a Catalyst for Islamic Banking Financial Performance; Evidence in Indonesia

Corporate governance can be assessed from how the company has been run openly and transparently, to gain public trust in market mechanisms. Islamic banking in Indonesia shows a pattern that social activities are an obligation that must be carried out. Social is a characteristic of Indonesian banking, a financial institution that has implemented the concept of sharia. In this study, the sample used amounted to 132 data on BUS's financial statements for 11 years from 2010-2020. As a result, improved governance, actually led to a decline in financial performance, by the regression value of -0.1682. Meanwhile, the social variable shows that if social performance increases, financial performance also increases by 0.282.

Impact of Corporate Social Responsibility and Profitability in Financial Performance Moderated by Amanah Concept

Purpose – This study aims to fill a gap in the literature by examining the impact of CSR, measured through Zakat, and the effect of profitability on the financial performance of companies in Saudi Arabia, as well as the role of the concept of Amanah as a moderating variable. Methodology/approach – This study employs a quantitative method using secondary data from financial reports of banks listed on Tadawul from 2019 to 2023. The sample was selected based on the consistency of reports and the absence of losses in the last three years. Data analysis was conducted through multiple linear regression with panel data using Eviews version 11. Findings – The research findings indicate that CSR and the concept of Amanah have a significant impact on the financial performance of Islamic banks, whereas profitability does not have a significant effect. The concept of Amanah also acts as a moderating variable that strengthens the influence of CSR and profitability on financial performance. Novelty/value – This study makes a significant contribution by demonstrating that the concept of Amanah plays a key role in enhancing the financial performance of Islamic banks, alongside CSR. The findings support the Sharia Enterprise theory and introduce a new approach to measuring the performance of Islamic banks by placing greater emphasis on the concept of Amanah.

Islamic Bank Performance and Macroeconomic Variables During Economic Turbulence

The study aims to analyze the effect of internal and external bank factors on the financial performance of Islamic banks during the Covid-19 pandemic. The external factors or macroeconomic factors consist of BI Rate and Inflation. The internal bank factors used are BOPO (Operating Expenses for Operating Income), CAR (Capital Adequacy Ratio), FDR (Financing to Deposit Ratio), NPF (Non-Performing Financing), and ROA (Return on Assets). A quantitative analysis is applied to assess the research construct by using a panel regression approach. The data used is sourced from Bank Indonesia and the Financial Services Authority for the observation period from 2019 - 2021. The findings show that external factors do not affect ROA in the long run and short run. Meanwhile, the internal factors BOPO and CAR significantly influence ROA, and NPF is having a significant impact only in the long run. The implications of this study show that Islamic banks need to strengthen operational efficiency, maintain capital adequacy, and implement good credit risk management in order to increase profitability sustainably, regardless of external fluctuations such as BI interest rates and inflation.

The effect of the level of Islamicity performance index on the financial performance of Islamic banks

The effect of the level of Islamicity performance index on the financial performance of Islamic banks

Analisis Implementasi Good Corporate Governance (GCG) dan Dampaknya Terhadap Kinerja Keuangan Lembaga Perbankan Syariah : Studi Kasus PT. Bank Pembiayaan Rakyat Syariah Bakti Makmur Indah Sidoarjo Tahun 2021-2023

This research aims to examine the implementation of Good Corporate Governance (GCG) and its impact on the financial performance of Islamic banks, with a focus on PT. Bank Pembiayaan Rakyat Syariah (BPRS) Bakti Makmur Indah Sidoarjo during the period of 2021-2023. The method employed in this research is a qualitative descriptive approach, which involves data collection through literature review and documentation related to the implementation of GCG at BPRS Bakti Makmur Indah, as well as the analysis of the bank's financial reports for the specified period. The research findings indicate that BPRS Bakti Makmur Indah has implemented the principles of GCG, such as transparency, accountability, responsibility, professionalism, and fairness. However, the financial performance of the bank experienced a significant decline from 2021 to 2023. This decline is evident from the decrease in the values of Return on Assets (ROA), Return on Equity (ROE), and Net Profit Margin (NPM). These findings suggest that although the principles of GCG have been implemented, their effectiveness is not yet optimal, and there are still challenges to be overcome to improve the financial performance of the bank.

Comparative Analysis of the Islamic Banking Financial Performance before and after Collaboration in Financing Distribution with Islamic Fintech: A Study of Mega Islamic Bank

This study examines the comparative the financial performance of Bank Mega Syariah prior to and following partnering with Sharia Fintech in financing distribution. Utilizing a quantitative and descriptive approach, it analyzes key financial ratios including NPF, ROA, ROE, NOM, and BOPO. Data from Bank Mega Syariah's financial reports over a 10-year period (2014-2023) are analyzed. Statistical analysis is performed using SPSS, applying the Paired Sample T-Test is utilized for normally distributed data, while the Wilcoxon Signed Ranks Test is used for non-normally distributed data. The outcomes indicate noteworthy distinctions in NPF, ROA, ROE, and BOPO after the collaboration, while NOM shows no significant variance. The findings suggest a positive impact of collaboration with Sharia Fintech on Bank Mega Syariah's financial performance, particularly in reducing NPF and enhancing ROA, ROE, and BOPO. However, it is noted that regulatory concerns highlighted in the AMS 2022/2023 survey remain a barrier to financial literacy and inclusion via Fintech. This study adds to the comprehension of the dynamic environment of Islamic banking within the framework of Fintech integration, offering insights for policymakers and industry practitioners.

Performance Analysis of Islamic Banks Using Error Correction Model

Introduction: The analysis of Islamic banking performance is a frequent subject of discussion in various literature. One factor that makes Islamic banks an exciting object of research is their role as Sharia-based intermediary institutions and their contribution to the effectiveness of monetary policy. This study aims to analyze the impact of CAR, NPF, FDR, and BOPO on the performance of Islamic banks measured by ROA and NOM. Research Methods: This quantitative research uses secondary data from Islamic Banking Statistics covering the period from January 2015 to December 2023. The data analysis technique employed is the Error Correction Model (ECM). Results: The results indicate that out of the four variables examined, only BOPO has a significant impact on the performance of Islamic banks. Conclusion: This finding suggests that efficiency in managing operational costs is a crucial factor in enhancing the financial performance of Islamic banks. The lower the BOPO, indicating higher cost efficiency, the better the performance of Islamic banks in terms of profitability as measured by ROA and NOM.

Pengaruh Penerapan Prinsip- Prinsip Ekonomi Syariah Terhadap Kinerja Keuangan Perbankan Islam

The application of sharia economic principles in Islamic banking has a significant impact on banking financial performance. This research discusses how the implementation of sharia economic principles in Islamic banking can improve banking financial performance. The research results show that Islamic banking which applies sharia economic principles has better financial performance compared to conventional banking. Sharia economic principles such as ethical risk management, development of Islamic capital markets, and community economic empowerment contribute to improving the financial performance of Islamic banking. In synthesis, this research shows that the application of sharia economic principles in Islamic banking can improve banking financial performance and increase public awareness about the importance of sharia economic principles in financial management.

ANALISIS PROFITABILITAS PERBANKAN SYARIAH DI NEGARA OKI

The development of the economic system can be seen from the movement of the financial system which has a global impact. Therefore, the role of banking is very important for economies around the world. The aim of this research is to assess the financial performance of Islamic banks in OIC member countries (Indonesia, Malaysia, Pakistan, United Arab Emirates and Saudi Arabia) through profitability. The measure of profitability is to use the ROA ratio. The data was processed using panel data regression testing. The results of data analysis show that CAR and sukuk have a significant positive effect on profitability, while BOPO has a significant negative effect on the profitability of sharia banks in OIC member countries during the 2018 - 2022 period. Only the inflation variable has not significantly influenced the profitability of sharia banks in OIC member countries during the period. 2018 – 2022. The implication of this research is that Islamic banks must strive to increase the CAR ratio and reduce the BOPO ratio because it can significantly affect the level of bank profitability. Apart from that, Islamic banks also continue to increase sukuk issuance because it can encourage increased profits.

Impact of Covid-19 Pandemic on the Financial Performance of Islamic Bank in the Philippines

This paper investigated the impact of the Covid-19 Pandemic on the performance of Islamic banks in the Philippines. It used the quarterly data before and during the pandemic. To empirically measure its impact on the Islamic bank in the country, this study used significant different tests to ascertain differences in the financial performance of the bank starting from the 1st quarter to the 4th quarter of 2019 used as a proxy for pre-pandemic variable and the 1st to 4th quarter of 2020 which was during the heights of the pandemic as data that represents the duration of the crisis. The result shows that the overall bank size during the pandemic was reduced by 2.08% while changes in return on deposits and return on equity before and during the pandemic were not statistically significant. However, there was enough evidence to show that Islamic deposits, return on assets, and net income, were significantly positively affected by the Covid-19 Pandemic. Test for significant difference further ascertained that the decrease in capital adequacy ratio during the pandemic was found statistically significant. It suggested that Islamic banking in the Philippines fared differently compared to its conventional counterparts in the country.

The Influence of Financing Diversification and Financial Performance on the Risk of Islamic Commercial Banks in Indonesia

This study aims to examine the influence of financing diversification, which includes six financing contracts of Islamic banks in Indonesia and financial performance on credit risk represented by NPF in Islamic commercial banks using regression panel data in 2018-2022. The results of this study indicate that there is an insignificant positive influence on financing diversification and financial performance partially on credit risk in Islamic banking in Indonesia. However, financing diversification and financial performance together have a significant influence on credit risk, which is currently a concern of the Islamic bank financial services authority in Indonesia. The financial performance measurement indicators in this study only focus on ROA, and this indicator may have limitations in measuring the financial performance of Islamic banking.

Good Corporate Governance Toward Financial Performance Of Islamic Bank In Indonesia

This research aims to analyze the influence of good corporate governance (GCG) on the financial performance of Islamic banks in Indonesia. This study uses a quantitative approach. The population in this research is 16 Islamic banks registered with the Financial Services Authority (FSA) for the 2021-2022 period. The sample used was 10 Islamic banks that issued quarterly report data. Sample selection was carried out using the purposive sampling method. The data collection technique uses secondary data in Islamic bank documentation and is processed using the SPSS 25 application with multiple linear regression tests. The results of this research are that the board of commissioners has a negative effect on the financial performance of Islamic banks, and the board of directors has a positive effect on the financial performance of Islamic banks. In contrast, the Sharia supervisory board does not affect the financial performance of Islamic banks. Theoretical research can complement existing theories and be a reference for future research. This research can be a reference for Islamic banking in analyzing corporate governance standards to provide investors with more knowledge and understanding about the financial performance of Islamic banking and enable investors to make the right decisions.

Human capital and financial performance of Islamic banks: a meta-analysis

PurposeThis paper aims to meta-analyze the results of the prior studies related to the relationship of human capital and financial performance in Islamic banking.Design/methodology/approachTo examine the relationship between human capital and financial of Islamic banks, 23 empirical studies having sample of 15,607 are considered for the meta-analysis. Moreover, different measures related to financial performance including return on assets (ROA), return of equity (ROE) and Tobin’s Q have been taken as moderating for further subgroup analysis.FindingsThe results of meta-analysis reveal a positive correlation between human capital and financial performance with an effect size of 0.268. The subgroup analyses showed significant positive associations of human capital with ROA and ROE, insignificant with Tobin’s Q.Originality/valueThis study suggests Islamic banking should prioritize human capital development, maintain consistency and adopt a long-term perspective. Future research should consider context-specific factors and harmonize human capital and financial performance measurements for consensus.

Pengaruh Pembiayaan Musyarakah Mudharabah dan Murabahah Terhadap Profitabilitas Bank BSI

This research aims to analyze the influence of musyarakah, mudharabah and murabahah financing on the profitability (ROE) of Bank Syariah Indonesia for the 2013-2023 period. The Ordinary Least Squares (OLS) method was used to analyze the financial data of Bank Syariah Indonesia from 2013 to 2023. The results of the analysis show that the three types of financing, both partially and simultaneously, have a positive and significant effect on the financial performance of Bank Syariah Indonesia. financial performance of Bank Syariah Indonesia. profitability of Indonesian Sharia Bank. These findings underline the importance of effective asset and capital management in improving the financial performance of Islamic banks. Thus, this research provides a better understanding of the relationship between types of sharia financing and bank profitability, as well as providing guidance for sharia bank management in making decisions to achieve better financial performance in the future.

Pengaruh Intellectual Capital terhadap Kinerja Keuangan pada Bank Syariah di Malaysia Tahun 2019-2022

This study aims to investigate the effect of Intellectual Capital on the financial performance of Islamic banks in Malaysia during the period 2019-2022. This research method uses a quantitative approach by collecting data from the annual financial statements of Islamic banks in Malaysia during the study period. Intellectual Capital is measured by Capital Employed Efficiency, Human Capital Efficiency and Structural Capital Efficiency. Financial performance is measured by ROA (Return on Assets). The data analysis technique uses Partial Least Square (PLS). The sample was selected based on purposive sampling and there were 13 Islamic Banks for 4 years. The results showed that intellectual capital has a positive and significant effect on financial performance. This finding indicates that the management and development of intellectual capital, such as efficient use of capital, improving employee skills, and strengthening organizational infrastructure, contribute positively to the financial performance of Islamic banks in Malaysia. The practical implication of this study is that the management of Islamic banks should pay special attention to the management of their intellectual capital as part of the strategy to improve ROA. Investment in intellectual capital development can generate long-term benefits for Islamic banks, especially in the face of intensifying competition in the banking industry.