Profitability Of Islamic Banks Research Articles

Profitability and Financing Analysis at Sharia Bank in Indonesia

This research aims to determine the influence of Capital Adequacy, Financing Problems and Asset Quality on the Profitability of Sharia Banks in Indonesia. To determine the number of samples, a purposive sampling technique was used. The data used is secondary data, panels in quarters. Data was obtained from the Financial Services Authority/OJK for the period March 2018 to December 2020. Panel Data Regression analysis techniques with Fixed Effect Models were used to analyze the influence of independent variables on the dependent variable. The results of this research indicate that Capital Adequacy, Problem Financing and Asset Quality simultaneously have a significant effect on profitability. Meanwhile, partial testing shows that the Capital Adequacy and Asset Quality variables do not have a significant effect on profitability. The problematic financing variable has a significant negative effect on profitability. This requires efforts to reduce problematic financing so that efforts to increase the profitability of Islamic banks can be carried out in the future

PENGARUH DPK, PEMBIAYAAN MUDHARABAH, NPF TERHADAP ROA BANK UMUM SYARIAH DI INDONESIA

In Islamic banks, one of the indicators commonly used to assess the bank's health is its own financial report. Information obtained from financial reports can be used to calculate various financial ratios, often serving as the basis for evaluating a bank's health. Several factors affect profitability in Islamic banks, sourced from the different profitability indicators generated by various performance metrics. This is because third-party funds (DPK) and Mudharabah financing, when increasing, contribute to the increase in the Return on Assets (ROA). This is due to the fact that an increase in customer deposits gathered by Islamic banks will enhance the efforts of the Islamic bank in generating profitability. On the other hand, if non-performing financing (NPF) increases, the ROA will decrease. This is because the non-acceptance of disbursed funds contributes to the decline in ROA. The research aims to investigate the partial and simultaneous effects of DPK, Mudharabah financing, and NPF on ROA. The research methodology employed is quantitative with a causal approach. Using purposive sampling technique, five Islamic commercial banks were selected as the research sample for the period 2017 to 2022. The analysis utilized panel data regression analysis through Eviews12. The results indicate that DPK and Mudharabah financing, individually, do not have a significant partial impact on the ROA of Islamic commercial banks. However, NPF has a significant partial effect on the ROA of Islamic commercial banks. Furthermore, when considered collectively, DPK, Mudharabah financing, and NPF have a significant simultaneous impact on the ROA of Islamic commercial banks.

DETERMINAN YANG MEMPENGARUHI PROFITABILITAS BANK UMUM SYARIAH DI INDONESIA

This research aims to determine the determinants that affect the profitability of Islamic Commercial Banks (BUS) in Indonesia. Profitability is measured by Return on Assets (ROA) as the dependent variable. Determinants that are expected to affect ROA consist of Non Performing Financing (NPF), Financing to Deposit Ratio (FDR), Operating Costs to Operating Income (BOPO) and Profit Sharing Financing (PBH) as independent variables. The data used is secondary data which is quarterly data for the period 2016 to 2020, obtained from the Financial Services Authority. The population of this study were all 14 BUS. Determination of the sample using purposive sampling and obtained as many as 5 BUS with an observation period of 20 quarters so that the number of observations is 100 observations. The data analysis technique uses panel data regression analysis. The results of this research indicate that NPF, FDR, BOPO and PBH simultaneously have a significant effect on BUS profitability in Indonesia. Furthermore, the partial test results found that BOPO and PBH had a significant negative effect and FDR had a significant positive effect on BUS profitability, while NPF was not significantKeywords : Profitability; Sharia Commercial Banks

Pengaruh Pembiayaan Murabahah dan Financing to Debt Ratio terhadap Profitabilitas yang dimoderasi oleh Non Performing Financing pada BTPN Syariah

Murabahah financing is the most preferred financing option among customers due to its low risk and its versatility for working capital, consumption, or investment purposes. However, there is a phenomenon observed in BTPN Shariah where the increase in Murabahah financing is not accompanied by a rise in profits. Furthermore, the lack of profit increase is suspected to be due to the low Financing to Debt Ratio (FDR). This research aims to understand how Murabahah financing and FDR influence the profitability of Islamic banks, with Non-Performing Financing (NPF) acting as a moderator. The research sample includes quarterly reports from BTPN Shariah for the period 2015-2022, using purposive sampling techniques. The study utilizes SPSS 25 for analysis, including multiple linear regression,and Moderating Regression Analysis (MRA). The test results indicate that Murabahah financing, when considered individually, has an impact on profitability, whereas the Financing to Debt Ratio does not affect profitability. When both Murabahah financing and FDR are considered together, they collectively influence profitability with a percentage of 71.2% before moderation by NPF. The MRA results suggest that Non-Performing Financing is unable to moderate the impact of the two independent variables, namely Murabahah financing and FDR, on profitability.

Background of The Board of Director and Financial Intermediary: Does It Contribute to The Performance of Islamic Banks?

This study aims to examine the effect of women leadership, education level, financing and investment on the profitability of Islamic banks. The type of data used is secondary data in the form of annual reports of Islamic banks for the 2016-2020 period. Data collection was carried out using purposive sampling technique so that the sample obtained for research was 12 Islamic banks. The analytical tool used in this panel data regression with dummy variables is e-views 10 software. The results showed that partially financing and investment have a positive and significant effect on the profitability of Islamic banks, while women leadership and education level have no effect on profitability. Simultaneously, women's leadership, education level, financing and investment have an influence on profitability. Then based on the results of the determination test shows that the independent variables in the form of women's leadership, education level, financing and investment are able to explain the dependent variable profitability by 99%, while the other 1% is explained by other variables not mentioned in this study.

Pengaruh Capital Adequacy Ratio (CAR), Dana Pihak Ketiga(DPK), Non Performng Finance terhadap Profitabilitas Perbankan Pada Tahun 2016 - 2020

This study aims to determine whether the capital adequacy ratio, non-performing finance, third party funds affect the profitability of Islamic banking. The grand theory in this study uses Agency Theory. The population in this study is Islamic banking registered on the OJK website. Using purposive sampling technique by using secondary data. The results of this study indicate that the capital adequacy ratio has a positive and insignificant effect, third party funds have a negative and insignificant effect on the profitability of Islamic banking and non-performing finance has a negative and significant effect on the profitability of Islamic banking.

Nexus of liquidity creation, profitability and bank stability with the moderating role of corruption: an empirical analysis

Purpose This study aims to investigate the impact of liquidity creation (LC) on the profitability and stability of banks while considering the moderating role of corruption. Design/methodology/approach Panel data from 23 conventional banks and five Islamic banks in Pakistan spanning from 2008 to 2021 were used for analysis. The study used fixed effect and random effect models, along with the generalized method of moments estimation to ensure robustness of the results. Findings The study reveals a negative relationship between LC and banking profitability, but a positive association with banking stability. Additionally, corruption is found to play a moderating role in the relationship between LC, profitability and stability in the banking sector of Pakistan. Research limitations/implications The findings have practical implications for bank managers and investors, emphasizing the negative relationship between LC and profitability in Pakistan. Moreover, the study highlights the significant impact of corruption on bank performance, which can guide policymakers in formulating strategies to strengthen the banking sector and prevent financial turmoil in the future. Originality/value This study makes a significant contribution to the existing literature by examining the moderating role of corruption in the relationship between LC, profitability and stability in both conventional and Islamic banks.

The Effect of Bank Health on Profitability and Firm Value of Islamic Banks in Indonesia

<p><em>This study aims to determine the effect between bank health on profitability and firm value of Islamic Commercial Banks in Indonesia. This research employs a quantitative approach. Researchers conducted tests through the SPSS application and path analysis. The research included a total of 12 Islamic Commercial Banks for the financial year 2020-2022. The findings of this research demonstrate that RGEC (Risk Profile, Good Corporate Governance, Earnings, and Capital) have a simultaneous impact on bank health, specifically on profitaility through Return on Assets (ROA). Partially, only payments affect ROA. Meanwhile, other indicators of RGEC do not affect ROA. Partially, risk profile and earnings indicators affect Return on Equity (ROE). In contrast, two other indicators, namely good corporate profile and capital, do not affect ROE. Simultaneously, the influence of bank health on firm value is mediated by RGEC. Partially, the four RGEC indicators have no impact on firm value. In other tests, through the mediation flow, neither ROA nor ROE can mediate the effect of RGEC on firm value. Meanwhile, profitability through ROA and ROE affects firm value. The implications of this research significantly contribute to understanding the financial stability of bank health, its effect on profitability, its effect on firm value, and its contributions to the field of academic research.</em></p>

The Impact Of Islamic Financing Products On Islamic Banks Profitability: Case Of Al Rayan Bank (Qatar)

This study aims to determine the effect of islamic financing products on Islamic banks profitability of Al Rayan Islamic Bank. This research uses Quarterly data of Al Rayan Bank for 2011Q1-2023Q1.The variables used in this study are independent variables, Musharaka, Murabaha, Istisna’a and Ijarah financing. While the dependent variable is, the Islamic bank's profitability measured by (ROE).The study used ARDL Model to analyze the short and long-term relationships between variables. Data collected were analyzed by using EViews10 software. ARDL bounds test findings shown that there is a cointegration relationship between bank profitability and Islamic financing Products variables in the long run. The results of the long-run analysis show that Musharaka financing has a positive and significant effect on ROE at the 5% level. Murabaha financing has a negative and significant effect on ROE. Meanwhile, the Istisna’a and Ijarah variables have no significant effect on ROE. The short run dynamics show that there is a negative and significant effect of Murabaha and Ijarah financing on the profitability of the Islamic bank, while lagged value of Murabaha LMUR(-1) has a positive and significant effect on the profitability index of the Islamic bank. Simultaneously, there is no relationship and effect of Musharaka and Istisna’a on the profitability of the Islamic bank in the short term

Analisis Dan Estimasi Kinerja Bank Umum Syariah Sebelum Dan Selama Pandemi Covid-19

This study aims to determine and analyze the influence of macroeconomic and internal financial performance factors of Islamic Commercial Banks on the profitability of Islamic Commercial Banks before and during the COVID-19 pandemic, as well as to be able to estimate the long-term and short-term effects on the financial performance of Islamic Commercial Banks. The data analysis method in this study uses the Error Correction Model (ECM), where the end result is to measure the short-term and long-term influence of the movement of Islamic Commercial Bank profitability as measured by ROA. The data used is secondary data, in the form of time series and the research period is January 2015 - December 2022. The results showed that interest rates (SB), exchange rates (NTR), NPF, CAR and BOPO affect ROA in the long run. While NPF, BOPO and SB have an effect on ROA in the short term. These findings are very important for the Islamic banking industry and the authorities to carry out strategies that must be carried out on the influence of macroeconomics and internal financial performance of Islamic Commercial Banks

THE EFFECT OF EXCHANGE RATES, INFLATION AND BI RATES ON PROFITABILITY IN ISLAMIC COMMERCIAL BANKS DURING THE 2016-2022 PERIOD

A bank is a place to raise distribute and funds public funds. In addition, banks also provide payment services to the public. The main goal of a bank is to obtain profitability. This trial purpose to examine the effect of inflation, exchange rate, and BI rate on profitability (ROA) in Islamic commercial banks for the 2016-2022 period. The residents of this study incoporate all Islamic trade banks for the 2016-2022 period. The type of investigation used in this analysis is quantitative analysis. The data used is secondly data with a causal associative approach. The consequence of this study argue that the independent variables of Exchange Rate, Inflation, and the BI Rate have a significant effect on the dependent variable of Islamic Banking profitability (ROA). And partially, inflation and the BI Rate have a positive effect on ROA at the level α = 10%, while the exchange rate has a negative effect on ROA.

Influence Of Islamic Corporate Social Responsibility, Islamicity Performance Index, And Company Size On Sharia Banking Profitability

This study aims to determine the effect of Islamic corporate social responsibility, islamicity performance index, and company size on the profitability of Islamic banking in 2016-2020. In research, the independent variable is the influence of ICSR, sharia performance index, and company size, the dependent variable is profitability. This study uses secondary data from the company's annual report for the 2016-2020 period. The research population is Islamic banking companies in 2016 to 2020. The research sample was obtained as many as 30 companies through the purposive sampling method. The data analysis technique used multiple linear regression. The adjusted R square value is 0.194 or 19.4%, while the remaining 80.6% is described by other variables besides the variables in the study. The results of the study show that (1) ICSR includes investment funding, service products, employees, social communities, and corporate governance. And only indicators of investment funding have a significant effect on profitability (2) Islamicity Performance Index has a significant effect on profitability of Islamic banking (3) Company size has no effect on profitability.

Working Capital and Investment Financing in the MSME Sector: Impact on the Profitability of Islamic Commercial Banks in Indonesia

Working Capital and Investment Financing in the MSME Sector: Impact on the Profitability of Islamic Commercial Banks in Indonesia

Pengaruh Good Corporate Governance Dan Islamic Corporate Social Responsibility Terhadap Profitabilitas (Roa) Pada Bank Umum Syariah Di Indonesia Tahun 2017-2020

This thesis aims to determine the Effect of Good Corporate Governance and Islamic Corporate Social Responsibility on Profitability (ROA) in Islamic Commercial Banks in Indonesia in 2017-2020. This study uses the independent variable, namely Good Corporate Governance with the proxy of the Board of Commissioners, Board of Directors and Islamic Corporate Social Responsibility. The dependent variable is Profitability (ROA). The data used in this study is secondary data, namely the annual report and the GCG report of Islamic Commercial Banks for the 2017-2020 period. The population in this study are all Islamic Commercial Banks registered with the Financial Services Authority in the 2017-2020 period. The sample was selected by purposive sampling method and 8 samples were obtained. The analytical method used in this research is panel data regression, model testing, classical assumption test, t test, and f test which are processed using the Eviews 8 application and Microsoft Excel 2010. The results of this study indicate that the board of commissioners has no effect on profitability (ROA) at Islamic Commercial Banks in Indonesia in 2017-2020. The board of directors has no effect on the profitability (ROA) of Islamic Commercial Banks in Indonesia in 2017-2020. Islamic Corporate Social Responsibility has no effect on profitability (ROA) at Islamic Commercial Banks in Indonesia in 2017-2020. The board of commissioners, board of directors, Islamic Corporate Social Responsibility simultaneously (simultaneously) affect the profitability (ROA) of Islamic Commercial Banks in Indonesia in 2017-2020.

INCOME DIVERSIFICATION, PROFITABILITY, AND RISK IN ISLAMIC BANKING IN INDONESIA

This study investigates the factors that affect income diversification and the associated risk in Indonesian Islamic banking. Panel regression is used to examine the correlation between risk factors, including primary operating revenue, fee-based income, internal and external factors, and the profitability of Islamic banks. Panel regression analysis has been conducted on the data from 2012-2016 to determine the factors that affect profitability and risk. The results show that pretax profit, after-tax profit as a proportion of total assets, and after-tax profit as a percentage of total equity react differently to income diversification. According to the findings, an increase in profit before taxes can be expected as the number and diversity of a company's revenue streams continue to expand. This indicates that the financial health of Islamic banks improves when they have access to many revenue streams. Furthermore, the standard deviation of baseline income shows that diversifying sources of income has little effect on internal risk.

Effect of CASA, Fee-Based Income, and Intellectual Capital Towards Profitability of Islamic Banking in Indonesia

The increase in value of the Current Account Saving Account (CASA) and fee-based income (FBI) in Islamic banking industry is indicative of the optimal use of intellectual capital. This increase in the value of CASA and FBI does not enhance Islamic banking profitability in Indonesia. Therefore, this study aimed to measure and analyze the influence of CASA, FBI, and intellectual capital on profitability of Islamic banks. The populations of this study are all commercial Islamic banks from 2017 to 2020, from which a sample of 13 was selected using the purposive sampling method. Secondary data were collected from quarterly reports of the financial statements of the 13 Islamic banks from 2017 to 2020. This study adopted the panel data regression with a value-added method for the variable intellectual capital (VAIC). The results showed that CASA and intellectual capital had a significant positive effect on Islamic banking profitability, while FBI had no significant effect. It was recommended that in order to enhance banking profitability, the management of Islamic banks needed to improve CASAand intellectual capital by increasing the quantity of CASA funding and optimizing intellectual capital from human resources and technology.

Relationship Between Musharakah, Credit Risk, and Profitability in Pakistan's Islamic Banks

The most significant and theoretical link between credit risk and Islamic banks' profitability ratio (ROE) has been determined due to the special nature of Musharakah (cost-in-low) financing. This study aims to determine how credit risk affects Islamic banks' profitability ratio (ROE). Data was obtained from (2018-2022), from the yearly reports of selected Islamic banks in Pakistan. The data analysis found that measures for the end of Musharakah size financing (MSF) (0.0220) and Musharakah Non-Performing ratio (MNPR) (0.03706) significantly impact return on equity. Study results show a strong and positive correlation between ROE and the Musharakah Non-Performing Ratio (MNPR). Based on the findings, it was concluded that the economic support of Musharakah (diminishing) generally increases the return on equity (ROE) of Islamic banks. Therefore, this research suggests Islamic banks need to increase their support for Musharakah (diminishing) to overcome the high credit risk exposure. Based on the findings of this study, Islamic banks can design and implement policies to reduce credit risks while improving their financial performance. Furthermore, this research can help Islamic banks improve their profitability ratio by reducing credit risk.

Analisis Pengaruh Pendapatan Margin Murabahah dan Ijarah Muntahiyah Bittamlik terhadap Profitabilitas Bank Umum Syariah Di Indonesia Periode 2018-2022

The purpose of conducting this research is to determine the effect of Margin Income of Murabahah and Ijarah Mutahiyah Bittamlik on the Profitability of Islamic Commercial Banks in Indonesia for the 2018-2022 period. The type of research in this study is descriptive quantitative. The sampling technique used in this study was a purposive sampling technique and produced a sample of 6 Islamic Commercial Banks, including PT Bank BNI Syariah, PT Bank BCA Syariah, PT Bank Syariah Mandiri, PT Bank Bukopin Syariah, PT Bank BRI Syariah, PT Bank Muamalat Indonesia from the period 2018 to 2022. The data analysis method in this study is multiple regression analysis. The results of the research that has been done show that there is a significant effect of Margin Murabahah and Ijarah Mutahiyah Bittamlik income on Profitability which is carried out simultaneously.

Pengaruh Pembiayaan Mudharabah Dan Pembiayaan Musyarakah Terhadap Profitabilitas Bank Umum Syariah

Profitability is a measure of the success of a company or a bank. The higher the level of profitability of a bank, the survival of the bank will be more guaranteed. In this study profitability with the Return On Asset (ROA) indicator. In an effort to increase Sharia Commercial Bank Return On Assets (ROA) channeling working capital financing, namely mudharabah financing and musyarakah financing. The purpose of this study was to determine the effect of Mudharabah Financing and Musyarakah Financing on the Profitability (ROA) of Islamic Commercial Banks. This research was conducted using quarterly financial data at Bank BNI Syariah and Bank Syariah Bukopin 2015-2019 as samples. The results showed that mudharabah financing had a positive and significant effect on Return On Assets and Musyarakah Financing had a positive and significant effect on Return On Assets. Mudharabah financing and musyarakah financing simultaneously have a significant effect on return on assets. Keywords : Mudharabah Financing, Musyarakah Financing, Return On Asset

A Study on Relationship between Capital Adequacy Ratio (CAR) and Profitability of Islamic Banks in Bangladesh

The study explored the impact of capital adequacy ratio (CAR) on the profit of Islamic banks in Bangladesh. For conducting the study, we have used a panel data set from 2005 to 2018 of 5 Islamic banks operating in Bangladesh, and we also used the return on equity (ROE) as the proxy of profit. By employing the fixed effect (FE) model, we found that CAR had a significant positive impact, while inflation and domestic credit to GDP had a negative effect on profitability of Islamic banks in Bangladesh. The findings of our study have important implications for the stakeholders, customers, and regulators of banks in Bangladesh.