Profitability Of Islamic Commercial Banks Research Articles

Musharakah Financing: Profitability Improvement Tool for Islamic Banks

Islamic commercial banks are part of country’s financial system and play a crucial role in business industry. Similar to other business firms, Islamic commercial banks seek profits, growth and sustainability. This study attempted to analyze the effects of musharakah financing on the profitability of Islamic commercial banks. The majority of literature of finance relates to traditional finance, which has so many weaknesses. In contrast, this study focuses on Islamic banking theory with specific emphasis on Musharakah financing which is essential mechanism in the practice of Islamic banking and finance. The data were analyzed using statistical package for social science to examine the extant of the effects of musharakah financing on the profitability of Islamic commercial banks. Results: The results showed that musharakah financing has a positive effect on profitability of Islamic commercial banks (r = 0.882, p < 0.05). The study concludes that increase in Musharakah financing significantly improves profitability of Islamic commercial banks. The study presents several managerial implications, suggesting the importance of increasing service exposure to attract new customers, enhance public awareness towards musharakah financing, conduct regular visits to gain deep and accurate information concerning the operations of joint ventures business, and finally, the bank should have clearly written policy on musharakah agreement, financing, management and control systems. This study contributes to the existing literature on Islamic finance and banking, highlighting its growing global practice and theory, driven by community ethical and financial needs, innovation, and market competitiveness.

The Role of Green Banking Implementation in Sharia Banking Performance from an Islamic Perspective

The aim of this research is to determine the effect of implementing green banking on the profitability of Islamic commercial banks in Indonesia and the concept of green banking from an Islamic perspective. This research was conducted at Islamic commercial banks registered with the Financial Services Authority (OJK) for the 2016-2022 period. The population in this study consisted of 12 Islamic commercial banks. The sample selection used a non-probability sampling method with a purposive sampling technique and a sample of 8 Islamic commercial banks with 7 years of observation was obtained so that 56 research data were obtained. The hypothesis testing method in this research uses a panel data regression model with a Fixed Effect Model (FEM) approach using the EViews program. The urgency of this research is to see the impact of implementing green banking on Sharia banking performance, especially from an Islamic perspective. The research results show that Green Banking practices have a negative and insignificant effect on Sharia banking performance.

PENGARUH DPK, NPF DAN ZPR TERHADAP PROFITABILITAS DENGAN FDR SEBAGAI MODERASI

Based on the phenomenon regarding the development of Return on Assets (ROA) in Islamic banking in Indonesia in recent years, which shows the occurrence of fluctuations in developments and descriptions of what factors influence the financial performance of Islamic banking based on existing theory, there is an inconsistency in this research, namely the use of the moderating variable, namely Financing to Deposit Ratio (FDR), to see the relationship between DPK, NPF, and ZPR on ROA. The results of this study show that DPK has a negative and significant effect on the profitability of Islamic commercial banks. Non-performance financing has a negative and insignificant effect on the profitability of Islamic commercial banks. ZPR has a negative and insignificant effect on the profitability of Islamic commercial banks. This is caused by the fact that most Islamic commercial banks payments of zakat are not yet perfect, namely 2.5% of their assets, which have reached the ratio. Or even not paying zakat at all. and for the variable financing deposit ratio, it is able to moderate the effect of DPK and NPF on the ROA of Islamic Commercial Banks. However, the financing deposit ratio variable is not able to moderate the effect of ZPR on the ROA of Islamic commercial banks. Which means FDR is not a moderating variable on the effect of ZPR on the ROA of Islamic commercial banks.Keywords: Profitability; ZPR; FDR

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

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

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

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.

The Influence of Sharia Commercial Bank Financing on Profitability

Introduction - The theme of this research is the effect of financing on the profitability of Islamic Commercial Banks. Profitability is the company's ability to generate profits with all the capital owned by the company. Companies or banks that have a high rate of return on investment use relatively small debt because the high rate of return allows the company to finance most of its internal funding.Objective – This research was conducted with the aim of analyzing the effect of mudharabah, musyarakah, murabahah, istishna'dan ijarah financing on profitability in Islamic commercial banks registered with OJK for the 2017-2021 period Methodology - This research uses quantitative research. The data used is secondary data obtained from the annual financial reports of Islamic commercial banks registered with the Financial Services Authority (OJK) for the 2017-2021 period. The number of samples used was 28 samples obtained using purposive sampling method. The analysis technique used is multiple linear regression with the help of the SPSS 25 program. Findings - The research results obtained show that the financing variables mudharabah, murabaha and ijarah have no effect on profitability, while musyarakah and istishna' variables have a negative effect on profitability. Implications - The results of this study are expected to improve banking performance from financial and non-financial aspects.

VAR Analysis: What Drives The Profitability of Islamic Commercial Banks?

<p><em>Third-party funds of Islamic commercial bank in period of 2015-2021 have been increasing, as well as the matter of financing. However, the profitability of Islamic commercial bank during those years were fluctuating below 1,5% which affected the average of Return on Assets in 2015-2021 below a healthy level of 1,1%. In 2017, the third-party funds and financing has been increased, but ROA value tended to be constant, while in 2020, the increase of third-party funds and financing was inversely proportional to ROA ratio value that was actually decreased. This phenomenon incompatibility with theory has stated that the higher distribution of financing, it would determine the higher ROA ratio. Since, banking sector was often regarded as a heart of driving force of the country’s economy and profitability was significant for banking continuity. It needed to conduct a research on determinants that affected profitability of Islamic commercial banks. Hence, this research was aimed to analyze the effects of third-party funds, NPF, Operational Cost, and SBIS on ROA. The method in this research was quantitative with vector auto regression model as the analysis method. Based on the result of estimation, the third-party funds, NPF, and Operational Cost did not affect, but SBIS affected positively on ROA.</em></p>

Macroeconomic Sensitivity and Financial Performance on Islamic Banks Profitability

This study aims to determine and analyze the effect of NOM sensitivity on inflation, CAR, NPF, FDR, OER, and company size (Size) on profitability in Islamic commercial banks in Indonesia from 2017 to 2022. The population in this study are all Islamic Banks in Indonesia. The sample used is purposive sampling. There are 7 Islamic Banks that are the sample in this research object. The method used is linear regression, where this method is used for hypothesis testing. In this study, the measurement of the coefficient of determination, the F significance test, and the t significance test were used. This measurement is done to determine how much influence between variables. The test results show that simultaneously NOM sensitivity on inflation, CAR, NPF, FDR, OER, effect on profitability. However, the t significance test shows only OER has a significant negative effect on the profitability of Islamic commercial banks in Indonesia. Meanwhile, NOM's sensitivity to inflation, CAR, NPF, and firm size (Size) have no significant effect on the profitability of Islamic Banks in Indonesia. The hypothesis regarding the Financing to Deposit Ratio (FDR) has a positive effect on the profitability of Islamic banks has not been proven.

Pengaruh Non Performing Financing Terhadap Profitabilitas Bank Umum Syariah Periode 2018-2021

This study aims to analyze the effect of NPF (Non Performing Financing) on profitability with the ratio of NPM (Net Profit Margin) of Islamic Commercial Banks in Indonesia, either partially or simultaneously. The NPF used is the NPF mudharabah, NPF musyarakah, and NPF murabahah. The research conducted is a quantitative research using secondary data obtained from Islamic Banking Statistics 2018-2021 which has been carried out to the public through the official website of the Financial Services Authority. The sample was selected by purposive sampling technique so that the selected sample was Islamic Commercial Banks in Indonesia. The data analysis method used in this research is multiple linear regression analysis method. The hypothesis test that will be used is the t test to partially test the hypothesis and the F test to test the hypothesis simultaneously. The results showed that partially the mudharabah NPF had a significant effect on the profitability of Islamic commercial banks in a positive direction, while the musyarakah NPF and murabahah NPF partially had no effect on the profitability of Islamic commercial banks. Simultaneously, NPF mudharabah, NPF musyarakah, and NPF murabahah have no effect on the profitability of Islamic Commercial Banks.

INTERACTION OF MACROECONOMIC VARIABLE SHOCKS AND MONETARY POLICY INTERVENTIONS ON THE PROFITABILITY OF SHARIA COMMERCIAL BANKS IN INDONESIA

Background. Economic growth and financial development in Indonesia are supported by developments in the Islamic banking industry. The business continuity of Islamic banking is determined by financial performance, which is measured by the level of profitability. The profitability of Islamic commercial banks is thought to be influenced by macroeconomic variables and monetary policy interventions.Purpose. This study aims to analyze the effect of shocks on macroeconomic variables, including the real effective exchange rate and consumer price index, and monetary policy intervention through the policy instrument of the Indonesian central bank's benchmark interest rate, namely the BI Rate, and the effect of the capital adequacy ratio on the profitability of Islamic commercial banks in Indonesia in the short and long term.Method. This study employs error-correction model analysis to completely utilize secondary data from January 2015 to May 2022. Data gathered from the Financial Services Authority's (OJK) Sharia Banking Statistics and Fred Economic Data (FED)Results. The research results show that the real effective exchange rate and consumer price index affect the profitability of Indonesian commercial banks in the long term but do not have a significant effect on the profitability of Islamic commercial banks in the short term. Monetary policy does not have a significant effect in the short or long term. Meanwhile, the capital adequacy ratio has a significant influence on the profitability of Islamic commercial banks in the short and long term.Conclusion. Macroeconomic variable shocks have the ability to disrupt banking performance in the short term, and this situation shows that banking management has not put flexible policies and a strategic approach to short-term changes in place. Short-term changes are still managed from the standpoint of handling internal conditions, however management is fairly effective at controlling capital adequacy.

PENGARUH RISIKO PEMBIAYAAN DAN RISIKO LIKUIDITAS TERHADAP PROFITABILITAS BANK UMUM SYARIAH PERIODE 2018-2020

This study aims to examine the effect of financing risk and liquidity risk on the profitability of Islamic commercial banks for the 2018-2020 period. The sampling technique used is purposive sampling. The sample used is a Sharia Commercial Bank registered with the Financial Services Authority (OJK). Based on the purposive sampling method, 11 Islamic Commercial Banks meet the criteria. The results of this study indicate that partial liquidity risk does not affect the profitability of Islamic commercial banks. In contrast, financing risk influences the profitability of Islamic commercial banks. This study also shows that financing and liquidity risks simultaneously affect Islamic commercial banks' profitability. Based on the calculations carried out in this study, the results showed that the financing risk level could affect Islamic commercial banks' profitability.

Analisis Pengaruh NPF, FDR, CAR, dan GCG terhadap Profitabilitas Bank Umum Syariah

This study aims to examine the effect of NPF, FDR, CAR and GCG on the profitability of Islamic commercial banks. The data used is secondary data in the form of annual financial reports from 10 Islamic Commercial Banks in Indonesia registered with the Financial Services Authority for the 2017-2020 period. The independent variables used are NPF, FDR, CAR, and GCG which are proxied by the board of directors, independent board of commissioners, and sharia supervisory board. While the dependent variable used is return on assets (ROA). Testing this hypothesis uses a path diagram that is processed with WarpPLS version 8.0. The results of this study indicate that the NPF, FDR, CAR and the sharia supervisory board have significant effect on the profitability of Islamic commercial banks, while the independent board of directors and commissioners have no significant effect on the profitability of Islamic commercial banks.

THIRD-PARTY FUNDS, CAPITAL ADEQUATE RATIO, PROFIT-SHARING FINANCING, AND NON-PERFORMING FINANCING ON PROFITABILITY IN SHARIA COMMERCIAL BANKS IN INDONESIA

This study aims to examine whether there is an influence from the mechanism of Third-Party Funds, Capital Adequate Ratio (CAR), Profit sharing financing, and Problematic financing on profitability in Islamic commercial banks for the period 2016-2020 with a total sample of 8 Islamic commercial banks in Indonesia. The analysis used in analysis multiple linear regression with the SPSS 18.00 analysis tool. The results of the data test stated that the f-test showed that all variables affected the profitability of Islamic commercial banks in Indonesia. Whereas through the t-test the variables of Third-party Funds (DPK), Capital Adequate Ratio (CAR), and profit-sharing financing have no effect on profitability in Islamic commercial banks in Indonesia while Non-Performing Financing (NPF) has an influence on profitability in Islamic commercial banks in Indonesia. Keywords: Third Party Funds, Capital Adequate Ratio, Profit sharing financing, Non Performing Financing, Profitability

CAR, NPF, FDR, dan BOPO Terhadap Profitabilitas Bank Umum Syariah

This research aims to analyze the effect of Capital Adequacy Ratio (CAR), Non-Performing Finance (NPF), Financing to Deposit Ratio (FDR) and Operating Cost of Operating Income (BOPO) on the Profitability of Islamic Commercial Banks in Indonesia. Sampling in this study used a purposive sampling method with data collection techniques, documentation studies and library research. The number of samples used as many as 12 Islamic Commercial Banks in Indonesia. The data obtained were analyzed using multiple linear regression analysis using Eviews 10 software and Microsoft Excel 365. The results of this research indicate that the CAR has an insignificant positive effect on Profitability, NPF has a significant negative effect on Profitability, FDR has an insignificant negative effect on Profitability, and (BOPO) has a significant negative effect on profitability.

Analisis Profitabilitas Pada Bank Umum Syariah di Indonesia

This study was conducted to analyze and examine the effect of capital adequacy, liquidity, financing and efficiency on profitability at Islamic Commercial Banks in Indonesia from 2017-2020. A total of 14 banks as the population of this study. Samples were taken using a saturated sampling technique, namely all parts of the population as samples. The total sample was 14 Islamic commercial banks in Indonesia from 2017-2020. The method of analysis in this study is multiple regression analysis. The hypothesis was tested using the F test and the t-test. The result of this research is that capital adequacy has a significant positive effect on profitability, liquidity has a non-significant positive effect on profitability, financing has a negative and significant effect on profitability, and efficiency has an insignificant negative effect on profitability. The conclusion is the adequacy of capital and financing can contribute to the profitability of Islamic commercial banks in Indonesia. Meanwhile, liquidity and efficiency can’t contribute to the profitability of Islamic commercial banks in Indonesia.

Profitabilitas pada bank umum syariah dan peran biaya intermediasi, capital adequacy ratio, pembiayaan mudharabah, financing to deposit ratio, dan dana pihak ketiga

This study aims to determine the effect of bank intermediation costs, capital adequacy ratio, mudharabah financing, financing-to-deposit ratio, and third-party funds on profitability in Islamic commercial banks for the 2016-2020 period. This research type is quantitative, while the analysis method uses multiple linear regression. The results of this study indicate that intermediation costs significantly positively affect profitability (return on assets). In contrast, the capital adequacy ratio, mudharabah financing, financing-to-deposit ratio, and third-party funds do not affect the profitability of Islamic commercial banks.

Pengaruh Tingkat Risiko Pembiayaan terhadap Profitabilitas Bank Umum Syariah

This study aims to determine the level of financing risk to the profitability of Islamic commercial banks. This study uses data from the financial statements of Islamic commercial banks that have been audited and published to the public through the official website of the financial services authority. The author uses a quantitative descriptive type of research; the analysis method in this study is a simple linear regression analysis. The sample determination technique used with purposive sampling techniques is to select samples based on certain criteria based on the purpose of the study. The results showed that there was a significant negative relationship between NPF and ROA. The relationship is a cause-and-effect relationship, so the ROA value is inversely proportional to the NPF. In this study, the size of the ROA value was influenced by NPF. It can be concluded from this study that there is a significant negative relationship between NPF and ROA. The relationship is a cause-and-effect relationship, so the ROA value is inversely proportional to the NPF.
 Keywords: Profitability, Financing Risk level

THE SECTORAL FINANCING DIVERSIFICATION AND THE PROFITABILITY OF ISLAMIC BANKING IN INDONESIA

This study investigates the influence of sectoral financing concentration on the profitability of Islamic banking in Indonesia. The data is aggregated by Indonesian Islamic banks from January 2015 to June 2021. Islamic banks are divided into two, namely Islamic commercial banks and Islamic window banks. The study used Autoregressive distributed lag (ARDL) and Panel Mean Group (PMG). The results showed that sectoral financing concentration increased the profitability of Islamic commercial banks while diversification of sectoral financing boosted the profitability of Islamic window banks. In addition, this study also showed that size and inefficiency negatively affected the profitability of Islamic commercial banks and window banks. This result implies that the right sectoral financing policy for Islamic commercial banks is financing concentration. This strategy implies that Islamic commercial banks must build competitiveness in certain sectors of the economy. For this reason, there is a need to increase the skills of the worker to build a competitive advantage in the sector that is the focus of financing. In comparison, sectoral financing diversification is more applicable for Islamic window banks. To support this diversification strategy, banks must conduct good supervision in the financing, especially sectoral financing based on profit-sharing contracts.