Factors Affecting the Profitability of Islamic Commercial Banks in Indonesia for the Period 2021–2023: FACTORS AFFECTING THE PROFITABILITY OF ISLAMIC COMMERCIAL BANKS IN INDONESIA FOR THE PERIOD 2021–2023

Widia Octari Diliana; Rr Lilis Intan Permatasari

doi:10.30871/jama.v9i2.9930

Authors

Widia Octari Diliana Universitas Nusa Cendana
Rr Lilis Intan Permatasari

DOI:

https://doi.org/10.30871/jama.v9i2.9930

Keywords:

CAR; BOPO; NPF; ROA; Sharia Commercial Banks

Abstract

This study is driven by the importance of understanding sharia banking profitability factors. Capital Adequacy Ratio (CAR), Operational Expansion to Operating Income (BOPO), and Non-Performing Financing (NPF) effect return on assets (ROA) for Indonesian Sharia Commercial Banks from 2021 to 2023. Quantitative multiple linear regression study using secondary data from 12 OJK-listed Sharia Commercial Banks yields 36 observations. CAR positively and considerably affects ROA, highlighting the importance of capital adequacy. BOPO has a significant negative impact, proving that operational efficiency boosts profits. NPF has a positive impact on problem financing risk management. The three variables explain 69.2% of ROA variation. The study's theoretical contribution is to enrich the research on the factors influencing Sharia banks' profitability following the pandemic. Bank managers and regulators can use the findings to improve capital structure, cost efficiency, and risk management to boost financial performance.

Downloads

Download data is not yet available.

References

Agustina, Y., & Pratiwi, R. W. (2024). NPL Effect Moderating LDR, Profitability & CAR on Profitability of Indonesian Private Banks. KnE Social Sciences, 9(4), 351–367. https://doi.org/10.18502/kss.v9i4.15084

Akerlof, G. A. (1970). The Market for “Lemons”: Quality Uncertainty and the Market Mechanism. The Quarterly Journal of Economics, 84(3), 488–500. https://doi.org/10.2307/1879431

Almunawwaroh, M., & Marliana, R. (2018). Pengaruh CAR, NPF dan FDR terhadap Profitabilitas Bank Syariah di Indonesia. Jurnal Ekonomi dan Keuangan Syariah, 2(1), 1–17. https://doi.org/10.29313/amwaluna.v2i1.3156

Astuti, R. P. (2022). Pengaruh CAR, FDR, NPF, dan BOPO terhadap Profitabilitas Perbankan Syariah. Jurnal Ilmiah Ekonomi Islam, 8(3), 3213–3223. https://doi.org/10.29040/jiei.v8i3.6100

Berk, J., & DeMarzo, P. (2023). Corporate Finance. London: Pearson Education.

Destiani, I. R., Mayasari, I., Tamara, D. A. D., & Setiawan, S. (2023). Pengaruh CAR, NPF, FDR dan BOPO terhadap Profitabilitas BPRS di Indonesia. Journal of Applied Islamic Economics and Finance, 3(2), 356–372. https://doi.org/10.35313/jaief.v3i2.3766

Dewi, N. L. P. S., & Ariani, M. D. (2020). Pengaruh CAR, NPF, BOPO terhadap Profitabilitas Bank Umum Syariah. Jurnal Ilmu dan Riset Akuntansi, 9(3), 1–15. https://doi.org/10.32528/jiai.v6i1.5065

Effendi, J. (2018). Theoretical Framework for Islamic Banking Profitability. Jakarta: Salemba Empat.

Ferawati, R. U. (2022). Fluktuasi Rasio Keuangan FDR, NIM, NPF dan BOPO terhadap Profitabilitas (ROA) pada Bank Umum Syariah. Jurnal Ilmiah Pendidikan, 2(1), 16–25. Retrieved from https://media.neliti.com/media/publications/537235-none-44726e4c.pdf

Iqbal, Z., & Mirakhor, A. (2011). An Introduction to Islamic Finance: Theory and Practice (2nd ed.). London: John Wiley & Sons.

Karadayi, N. (2023). Determinants of Return on Assets. European Journal of Business and Management Research, 8(3), 37–44. https://doi.org/10.24018/ejbmr.2023.8.3.1938

Khuluqi, M. N. A. (2024). Analysis of the Influence of CAR, NPF, FDR, and BOPO on the Profitability of Sharia Commercial Banks. Al Fadhilah International Journal of Islamic Studies, 1(1), 25–42. https://doi.org/10.34305/afijis.v1i1.451

La Difa, C. G., Setyowati, D. H., & Ruhadi. (2022). The Effect of FDR, NPF, CAR, and OER on Profitability of Islamic Banks in Indonesia. Journal of Applied Islamic Economics and Finance, 2(2), 333–341. https://doi.org/10.35313/jaief.v2i2.2972

Modigliani, F., & Miller, M. H. (1958). The Cost of Capital, Corporation Finance and the Theory of Investment. The American Economic Review, 48(3), 261–297. Retrieved from https://www.jstor.org/stable/1809766

Nimalathasan, B., & Brabete, V. (2010). Capital Structure and Its Impact on Profitability: A Study of Listed Manufacturing Companies in Sri Lanka. Revista Tinerilor Economisti, 1(5), 7–16. Retrieved from https://econpapers.repec.org/article/aiorte/yej

OJK. (2024). Statistik Perbankan Syariah Desember 2023. Retrieved from https://www.ojk.go.id/id/statistik-dan-data/Statistik-Perbankan-Syariah

Pratiwi, A., & Diana, N. (2021). Pengaruh CAR, NPF, dan BOPO terhadap Profitabilitas pada Bank Umum Syariah di Indonesia tahun 2015–2019. Jurnal Ilmiah Akuntansi Indonesia, 6(1), 55–66. https://doi.org/10.32528/jiai.v6i1.5065

Sari, D., & Putri, P. (2021). Pengaruh Dana Pihak Ketiga, CAR, NPF dan FDR terhadap ROA pada Bank Syariah yang Terdaftar pada Bursa Efek Indonesia. Journal of Economics and Business Innovation, 1(1), 1–13. Retrieved from https://journal.inspirasi.or.id/index.php/nomicpedia

Sentika, D., Sujadi, E., & Sramigi, E. (2024). Analysis of the Impact of BOPO, FDR, NOM and NPF on ROA of Indonesian Sharia Commercial Banks Registered with the OJK. Jurnal Kajian Ekonomi & Bisnis Islam, 5(4), 3230–3249. https://doi.org/10.47467/elmal.v5i4.1915

Sitompul, S., & Nasution, S. K. (2019). The Effect of CAR, BOPO, NPF, and FDR on Profitability of Sharia Commercial Banks in Indonesia. Budapest International Research and Critics Institute, 2(3), 234–238. https://doi.org/10.33258/birci.v2i3.412

Stiglitz, J. E., & Weiss, A. (1981). Credit Rationing in Markets with Imperfect Information. American Economic Review, 71(3), 393–410. Retrieved from https://www.jstor.org/stable/1802787

Subekti, W. A. P., & Wardana, G. K. (2022). Pengaruh CAR, Asset Growth, BOPO, DPK, Pembiayaan, NPF dan FDR terhadap ROA Bank Umum Syariah. Jurnal Inovasi Bisnis dan Manajemen Indonesia, 5(2), 270–285. https://doi.org/10.31842/jurnalinobis.v5i2.229

Suharyanto, B. (2018). Analisis Faktor-Faktor yang Mempengaruhi Profitabilitas Bank Syariah di Indonesia (Thesis). Universitas Brawijaya.

Sutrisno, E. (2019). Manajemen Perbankan. Jakarta: Kencana.

Wijayani, D. I. L. (2023). Faktor-Faktor yang Mempengaruhi Profitabilitas Bank: Studi pada Perbankan Swasta di Indonesia. Owner: Riset & Jurnal Akuntansi, 7(1), 563–575. https://doi.org/10.33395/owner.v7i1.1223

Zikri, S. A., Tamara, D. A. D., Mai, M. U., & Nurdin, A. A. (2023). Analisis Pengaruh CAR, NPF, BOPO, dan FDR terhadap ROA (Studi Kasus PT. Bank Muamalat Indonesia Tbk.). Journal of Applied Islamic Economics and Finance, 3(2), 286–301. https://doi.org/10.35313/jaief.v3i2.3756

FACTORS AFFECTING THE PROFITABILITY OF ISLAMIC COMMERCIAL BANKS IN INDONESIA FOR THE PERIOD 2021–2023