Determinants of Islamic Banks’ Profitability in Indonesia

Abstract

This research aims to examine the determinants of Islamic Banks' profitability in Indonesia, consisting of internal and external factors. The research method is descriptive verificative. The research sample is 12 Islamic Commercial Banks that publish their financial statements for period 2013-2017. Data research is secondary data that is the annual financial reports published by Bank Indonesia and Financial Services Authority or OJK for variables CAR, NPF, BOPO, FDR; the annual Islamic Commercial Bank report for variable ROA; the annual report of Bank Indonesia and Indonesian Central Bureau of Statistics for variables BI Rate and Inflation. This panel data, a combination of cross-section and time series, analyzed using regression analysis method. The study result found that internal factors CAR and NPF have positive effect on ROA, while BOPO and FDR have negative effect on ROA. Meanwhile, external factors BI Rate and Inflation have no effect on ROA.

Analisis Faktor-Faktor Yang Mempengaruhi Kinerja Profitabilitas Bank Umum Syariah (Bus) Di Indonesia

“…Faktor internal yang dimaksud adalah Capital Adequacy Ratio (CAR), Net Performing Financing (NPF), Biaya Operasional terhadap Pendapatan Operasional (BOPO), dan Financing to Deposit Ratio (FDR). Sedangkan faktor eksternal adalah faktor yang berhubungan dengan ekonomi makro dan tidak memiliki hubungan langsung dengan manajemen bank tetapi akan mempengaruhi kinerja keuangan secara tidak langsung (Rini & Burhany, 2019). ROA yang positif menunjukkan bahwa dari total aktiva yang dipergunakan untuk beroperasi, perusahaan mampu memberikan laba bagi perusahaan.…”

Analisis Faktor-Faktor Yang Mempengaruhi Profitabilitas Saat Pandemi Covid-19

“…Dalam penelitiannya, Parvin et al (2020) diperoleh hasil bahwa terdapat perbedaan yang signifikan antara sebelum dan sesudah terjadinya pandemi covid 19 terutama pada variabel DPK, rekening, dan pembiayaan pada Bank Umum Syariah. Rini & Burhany (2020) dalam penelitiannya yang menganalisis pengaruh CAR, BOPO, NPF, dan FDR, menyimpulkan bahwa secara simultan CAR, NPF, FDR berpengaruh signifikan terhadap ROA, sedangkan secara parsial BOPO memiliki pengaruh yang cukup besar terhadap ROA. Penelitian yang juga dilakukan oleh Purbaningsih (2014) menunjukkan hal yang sama dimana total aset dan rasio aset tabungan berpengaruh positif terhadap persentase profitabilitas, sedangkan NPF dan FDR berpengaruh negatif terhadap profitabilitas.…”

The Role of Noan Performing Financing (NPF) as A Mediator for The Relationship Between Operating Expenses and Operating Income (BOPO) on The Performance of Islamic Banks in Indonesia

“…So that the greater the efficiency ratio, the lower the banking financial performance will be. Likewise, if the ratio of operating costs to operating income gets smaller, it can be concluded that the profitability of a company (banking) is increasing (Rini & Burhany, 2020).…”

“…According to Rini & Burhany (2020), BOPO has a positive effect on ROA, but Nahar & Prawoto (2017), Sitompul & Nasution (2019) argues that OEOI has a negative effect on ROA, from this research gap, the purpose of this research is to examine and analyze the effect of operating costs and operating income. As well as to test and analyze the effect of liquidity on the performance of Islamic banks in Indonesia which is mediated by company size.…”