ANALYSIS OF FACTORS INFLUENCING THE PROFITABILITY OF ISLAMIC BANKING

Dhita A'ulia Syamsi, Anton Bawono

Abstract


This study uses a quantitative approach to analyze the influence of operational costs and income, non-performing financing (NPF), and the Islamicity Performance Index on the profitability of Islamic banking, with intellectual capital as a moderating variable. The population includes Sharia Commercial Banks located in Indonesia and registered with the Financial Services Authority from 2015 to 2022. The sample was determined using purposive sampling, resulting in 56 data points. Hypotheses were tested using Moderated Regression Analysis (MRA) with Eviews 12 software.The results indicate that operational costs and income (BOPO) significantly influence the Return on Assets (ROA), while NPF does not. The profit-sharing ratio (PSR) and the Islamic Income vs Non-Islamic Income Ratio (IsIR) significantly influence ROA. Intellectual capital (IC) has a direct influence on ROA but does not moderate the relationship between BOPO and ROA, nor between NPF and ROA. However, IC can moderate the relationship between the profit-sharing ratio and ROA. It does not moderate the relationship between IsIR and ROA. These findings suggest that operational efficiency, profit-sharing mechanisms, and the proportion of Islamic income are crucial for enhancing profitability in Sharia Commercial Banks, with intellectual capital playing a significant but selective moderating role.

Keywords


Operational Costs & Income; Non-Performing Financing; Islamicity Performance Index; Return on Assets; Intellectual Capital

Full Text:

PDF
rticle

References


Adam, M., Safitri, R., & Wahyudi, T. (2018). Effect of company size, liquidity and operational efficiency on bank profitability with problem credit risk as a moderating variable at commercial banks that are listed on the Indonesia Stock Exchange. Journal of Regional Financing and Development Perspectives, 6(3), 331–344. https://doi.org/10.22437/ppd.v6i3.5894

Alwi, A. A., Zulti, N., Rosmanidar, E., & Usdeldy, U. (2023). Analysis of CAR, NPF, BOPO AND FDR on Profitability in Sharia Banks in Indonesia: Systematic Literature Review. Journal of Scientific Horizons, 2(6), 2547–2570.

Apriyanti, H. W. (2018). Sharia Banking Product Innovation Model in Indonesia. Economica: Journal of Islamic Economics, 9(1), 83–104. https://doi.org/10.21580/economica.2018.9.1.2053

Basyirah, L., & Wardi, M. C. (2020). Implementation of POAC (Planning, Organizing, Actuating, Controling) Risk Management for Tabarok Business Capital Financing at PT BPRS Sarana Prima Mandiri Pamekasan. NUANSA: Journal of Islamic Social and Religious Science Research, 17(1), 61–74. https://doi.org/10.19105/nuansa.v17i1.2836

Effendi, B., & Windiarko, M. A. (2023). Sharia Bank Readiness in Facing the 2023 Recession. Scientific Journal of Islamic Economics, 9(1), 637–645.

Hameed, S., Wirman, A., Alrazi, B., Nazli, M., & Pramono, S. (2004). Alternative Disclosure and Performance Measures for Islamic Banks. Second Conference on Administrative Sciences: Meeting the Challenges of the Globalization Age, King Fahd University of Petroleum & Minerals, Dhahran, Saudi Arabia, 19–21.

Harahap, A. P., & Saraswati, D. (2020). Bank dan Lembaga Keuangan Lainnya. Surabaya: CV. Jakad Media Publishing.

Hermawan, S., Octavia, R., & Maryanti, E. (2020). INTELLECTUAL CAPITAL KINERJA KEUANGAN, DAN COMPETITIVE ADVANTAGE: Bukti dari Perbankan Syariah di Indonesia dan Malaysia. Sidoarjo: Indomedia Pustaka.

Khasanah, A. N. (2021). The Influence of Intellectual Capital and the Islamicity Performance Index on the Financial Performance of Sharia Banking in Indonesia. Nominal Journal, 5(1), 1–18.

Moorcy, N. H., Sukimin, S., & Juwari, J. (2020). The influence of FDR, Bopo, NPF, and Car on ROA at PT. Mandiri sharia bank for the 2012-2019 period. Journal of GeoEconomics, 11(1), 74–89.

Nurmawati, B. A., Rahman, A. F., & Baridwan, Z. Z. (2020). The Moderating Role of Intellectual Capital on the Relationship Between Non Profit Sharing Financing, Profit Sharing Financing and Credit Risk to Financial Performance of Islamic Bank. Journal of Accounting and Finance Review, 10(1), 38–52.

Otoritas Jasa Keuangan. (2016). OJK Regulation No. 4/POJK.03/2016 concerning Assessment of Commercial Bank Soundness Level.

Rahmawati, U. A., Balafif, M., & Wahyuni, S. T. (2021). Analysis of the Influence of CAR, NPF, FDR, BOPO, and NOM on Financial Performance (ROA) in Sharia Commercial Banks for the 2015-2019 Period. Bharanomics, 2(1), 93–106. https://doi.org/10.46821/bharanomics.v2i1.194

Saifudin, S., Sulistyawati, A. I., Putri, A., & Debby, N. (2021). Financial Performance Based on Camel Principles: Study at Bank Bukopin. Jurnal Dinamika Ekonomi Dan Bisnis, 18(1), 37–50. https://doi.org/10.34001/jdeb.v18i1.1989

Sugiyono. (2018). Metode Penelitian Kuantitatif, Kualitatif, dan R&D. Alfabeta.

Syah, T. A. (2018). Pengaruh Inflasi, BI Rate, NPF, dan BOPO terhadap Profitabilitas Bank Umum Syariah di Indonesia. El-Jizya: Jurnal Ekonomi Islam, 6(1), 133–153.




DOI: https://doi.org/10.20961/jaedc.v9i1.81527

Refbacks

  • There are currently no refbacks.


Copyright (c) 2024 Dhita A'ulia Syamsi, Anton Bawono

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

JAEDC
Print ISSN: 2354-6417
Online ISSN: 2685-7448
Website: https://jurnal.uns.ac.id/jaedc
Email: jaedc@mail.uns.ac.id
Published by: Master of Economics and Development Studies, Faculty of Economics and Business, Universitas Sebelas Maret
Office: Ir. Sutami Street, No. 36A, Surakarta, Jawa Tengah, Indonesia