Analysis of The Effect of Financial Ratios on ROA In Islamic Commercial Banks in Indonesia

Authors

  • Widiastuti Murtiningrum Perbanas Institute

DOI:

https://doi.org/10.54099/ijibmr.v3i2.624

Keywords:

Financial ratios, profitability, Islamic banking

Abstract

Currently, Islamic banks are growing rapidly, starting in 1983, where BI gave freedom to banks to set interest rates, in order to create a healthy and strong bank, by implementing a profit-sharing system. The potential for the development of Islamic banks is very open, to become a leading bank at the global level. One of the government's missions is to develop the halal industry, making Islamic banks large and powerful in the country with the largest Muslim population in the world. For this reason, research was conducted by analyzing the ratio of finance to profitability at Islamic Banks from 2010 to 2022. The population in the study was 8 out of 14 Islamic banks, which are registered with OJK and have complete financial statements published with purposive sampling. Data analysis method with panel data regression using SPSS 25 and eviews 10. From the results of the t test, it is hypothesized that CAR and FDR have no influence on ROA, while NPF and BOPO have a negative influence on ROA. The variables CAR, FDR, NPF and BOPO simultaneously have a significant influence on the ROA of Islamic Banks for the period 2010 – 2022. The coefficient of determination is 53.5% and the remaining 46.5% comes from factors other than variables in the study.

References

A. Wangsawidjaja (2012). Sharia Bank Financing, Jakarta : PT. Gramedia Main Library

Afrilien, Fridiani (2021). Analysis of the Influence of Internal Factors and External Factors on the Profitability of Sharia Commercial Banks for the 2018-2021 Period. URI:https://digilib.iainptk.ac.id/xmlui/handle/123456789/2321.

Agustin, P.T and Darmawan (2018). The Effect of Financial Ratios on Financial Performance of Sharia Banks (Study on Sharia Commercial Banks Registered with the Financial Services Authority of the Republic of Indonesia in 2014-2016). Journal of Business Administration, 64(1), 102-108.

Ardichy.M.F and Rahayu Y.S (2022). The Effect of Financial Ratios on Profitability at Sharia Commercial Banks in Indonesia for the 2017-2021 Period. Accounting Research and Journal, 6(3), 2432-2445. https://doi.org/10.33395/owner.v6i3.924

Arifin.Z (2009). Basics of Sharia Bank Management. Jakarta : Azkia Publisher.

Ceta Indra Lesmana, Lutvi Alamsyah and Ema Widya Kalpikawati (2022). The Effect of Liquidity Ratio and Solvency Ratio on Return On Asset (ROA) That Affects Stock Prices (Case Study of Sharia Commercial Bank Listed on Indonesia Stock Exchange). Journal of Islamic Studies, K.H Abdul Chalim Islamic Boarding School Institute Mojokerto, Indonesia, Kartika, Vol.2, No.2, November 2022

Dendawijaya, L. (2009) Banking Management. Ghalia Indonesia.

Hakim L, Pamitkasih M and Setiabudi H (2023). Analysis of the Effect of CAR, NPF and FDR on the ROA of Sharia Commercial Banks. Jesya (Journal of Economics and Sharia Economics), 6(1), 661-673. https://doi.org/10.36778/jesya.v6i1.1008.

Cashmere (2008). Financial Statement Analysis, 7th Edition. Raja Grafindo Persada, Jakarta

Kuncoro and Suhardjono (2011). Banking Management (Theory and Application), Second edition, BPFE, Yogyakarta.

Muhammad (2002). Sharia Bank Management, Yogyakarta : UPP STIM YKPN

Muhammad and Dwi Suwiknyo (2005). Sharia Banking Accounting, Yogyakarta, Trustmedia

Nadlira and Hunufa, Ainun (2022) Analysis of the Influence of Intellectual Capital and Financial Ratios on Financial Performance of Sharia Commercial Banks in Indonesia (Empirical Study on Sharia Commercial Banks registered with the Financial Services Authority for the 2014-2019 Period). Indonesian Journal of Islamic Business and Economics (S1), Vol.4, No.1, 16-39, March 2022, ISSN 2722-8002, http://jos.unsoed.ac.id/index.php/ijibe/article/view/8713. https://doi.org/10.32424/1.ijibe.2022.4.1.8713.

Financial Services Authority (2020). Sharia Banking Statistics. https:/www.ojk.go.id

Piliang, E and Deputy, A (2008). Financial Performance Analysis Using Financial Ratios and Economic Value Added (Case Study : PT. Bank Syariah Mandiri). Tazkia Islamic Finance and Business Review, 3(2)

Pradana A and Ersdkhadifa R (2023). Analysis of the Effect of Financing Products and Risk on the Profitability of Sharia Commercial Banks for the 2014-2021 Period. Journal of Student Research in Social Sciences, Economics and Business (SOSEBI), 3(1), 38-55. http://doi.org/10.21274/sosebi.v3i1.6141

Purbaningsih, R.Y.P and Fatimah, N (2018). The Effect of Liquidity Risk and Non-Performing Financing (NPF) Ratio on Profitability in Sharia Commercial Banks in Indonesia. International Journal of Business, Economics and Law, 16(1),5.

Downloads

Published

2023-12-20

How to Cite

Murtiningrum, W. . (2023). Analysis of The Effect of Financial Ratios on ROA In Islamic Commercial Banks in Indonesia. International Journal of Islamic Business and Management Review, 3(2), 173–182. https://doi.org/10.54099/ijibmr.v3i2.624

Issue

Vol. 3 No. 2 (2023)

Section

Articles

License

Copyright (c) 2023 International Journal of Islamic Business and Management Review

Creative Commons License

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

Copyright

Copyright aims to protect the specific way the article has been written to describe an experiment and the results. S International Journal of Islamic Business and Management Review is committed to its authors to protect and defend their work and their reputation and takes allegations of infringement, plagiarism, ethical disputes, and fraud very seriously. Automotive Experiences is published under the terms of the Attribution-NonCommercial 4.0 International (CC BY-NC 4.0). Authors retain copyright and grant the journal right of first publication (online and print) with the work simultaneously. We use the restrictive license (non-commercial) as follows:

BY (attribution): Users are allowed to share, distribute and redistribute the published article in any medium or format, with an identification of the authors and its initial publication in this journal. Authors are encouraged to post and distribute their articles immediately after publication (e.g., institutional or public repositories, personal websites). Authors are allowed to enter into additional contractual arrangements for the non-exclusive distribution of the published and an acknowledgment of its initial publication in this journal.
NC (non-commercial): Users are not allowed to use the article commercially without the permission of the authors. Authors agree explicitly that the published article is indexed worldwide in databases, repositories and indexation services, even if these services operate on a commercial basis. Authors grant  International Journal of Islamic Business and Management Review explicit the right to include the published articles in databases, repositories and indexation services. 

License

License to Publish

The non-commercial use of the article will be governed by the Attribution-NonCommercial 4.0 International (CC BY-NC 4.0). The author hereby grants  International Journal of Islamic Business and Management Review an exclusive publishing and distribution license in the manuscript include tables, illustrations or other material submitted for publication as part of the manuscript (the “Article”) in print, electronic and all other media (whether now known or later developed), in any form, in all languages, throughout the world, for the full term of copyright, and the right to license others to do the same, effective when the article is accepted for publication. This license includes the right to enforce the rights granted hereunder against third parties.

Author's Warranties

The author warrants that the article is original, written by stated author/s, has not been published before, contains no unlawful statements, does not infringe the rights of others, is subject to copyright that is vested exclusively in the author and free of any third party rights, and that any necessary written permissions to quote from other sources have been obtained by the author(s).

User Rights

Under the Creative Commons Attribution-Non Commercial 4.0 International (CC BY-NC 4.0) license, the author(s) and users are free to share (copy and redistribute the material in any medium or format) and adapt (remix, transform, and build upon the material). Users must give appropriate credit, provide a link to the license, and indicate if changes were made.

Rights of Authors

Authors retain the following rights:

  1. Copyright, and other proprietary rights relating to the article, such as patent rights,
  2. The right to use the substance of the article in future own works, including lectures and books,
  3. The right to reproduce the article for own purposes, provided the copies are not offered for sale, and
  4. The right to self-archive the article.

Co-Authorship

If the article was prepared jointly with other authors, the signatory of this form warrants that he/she has been authorized by all co-authors to sign this agreement on their behalf, and agrees to inform his/her co-authors of the terms of this agreement.

Royalties

This agreement entitles the author to no royalties or other fees. To such extent as legally permissible, the author waives his or her right to collect royalties relative to the article in respect of any use of the article by  International Journal of Islamic Business and Management Reviews or its sublicensee.

Miscellaneous

 International Journal of Islamic Business and Management Review will publish the article (or have it published) in the Journal if the article’s editorial process is successfully completed and  International Journal of Islamic Business and Management Review or its sublicensee has become obligated to have the article published.  International Journal of Islamic Business and Management Review may conform the article to a style of punctuation, spelling, capitalization, and usage that it deems appropriate.