The Impact of Financing Profit Sharing Ratio, Murabahah, and Non-Performing Finance on the Performance of Islamic Banks in Indonesia
Main
Lia Agustina*
Mohamad Irsyad
This research centers on the impact of Profit Sharing Ratio scheme, murabaha financing, and Non-Performing Finance (NPF) on the financial performance of Islamic banks in Indonesia, specifically focusing on the Return on Assets (ROA) metric. Utilizing a quantitative methodology, data from 12 Islamic Commercial Banks from 2014-2023 is analyzed using multiple linear regression techniques with EViews 10 software. The findings show that the Profit Sharing Ratio has no significant effect on the Return on Assets of Islamic Commercial Banks. Although Profit Sharing Ratio is a factor that can reflect the profit sharing between banks and customers, this finding indicates that the volatility of profit sharing schemes does not directly affect the profitability of banks, which could be due to the volatile and uncertain nature of the Islamic market itself. On the other hand, murabaha financing shows a significant effect on Return on Assets, indicating that fixed-margin financing is more effective in increasing bank profitability. Murabaha financing, which is based on the principle of sale and purchase with a clear margin, provides stability and predictability in cash flows, which is important in managing the financial performance of Islamic banks, compared to profit-sharing-based financing products that depend on market fluctuations. In addition, Non-Performing Finance has a significant impact on the financial performance of banks. High Non-Performing Finance indicates a high risk of non-performing financing, which can reduce profits and strain the financial stability of the bank. Hence, improved risk management is essential for Islamic banks to stay profitable and financially healthy.
Afandi, A., & Haryono, S. (2022). The Effect of Islamicity Performance Index and Debt Equity Ratio on Profitability with Intellectual Capital as a Moderating Variable for the 2016-2020 Period. MALIA: Journal of Islamic Banking and Finance,6 (1), 1. https://doi.org/10.21043/malia.v6i1.12600
Alifedrin, G. (2023). Liquidity Risk and Profitability of Islamic Banking The Role of FDR, LAD, LTA NPF and CAR. Bandung: Continuous Discovery Media Publication.
Apriani, E. (2021). Production Sharing Financing and Sale and Purchase on the Financial Performance of Islamic Commercial Banks during the Covid-19 Pandemic Npf and Bopo as Moderating Variables. Proceedings of the National Seminar & Call For Paper STIE AAS, 341–356.
Ardichy, M. F., & Rahayu, Y. S. (2022). The Effect of Financial Ratios on Profitability at Islamic Commercial Banks in Indonesia for the 2017-2021 Period. Owner,6 (3), 1432-1445. https://doi.org/10.33395/owner.v6i3.924
Asyik, & Fadrul. (2019). Analysis Of The Influence Of Capital Adequacy Ratio (CAR), Non Performing Financing (NPF), Net Operating Margin (NOM), Operational Cost And Operational Revenue (BOPO), Finance To Deposit Ratio (FDR) To The Financial Performance Of Syariah Banking In Indonesia Year 2011-2017. KURS: Journal of Accounting, Entrepreneurship and Business, 4(2).
Cahya, B. T., & Sari, D. A. (2021). Intellectual Capital, Islamicity Performance Index, and Financial Performance of Islamic Banks in Indonesia (Study in 2015-2020). AKTSAR: Journal of Islamic Accounting,4 (2), 155. https://doi.org/10.21043/aktsar.v4i2.12031
Chamidah, A. N., & Basalamah, M. R. (2021). The Effect of Mudharabah, Murabahah, Musyarakah, Ijarah Financing on Profitability at Pt. Bank Bri Syariah Malang Period 2015 - 2019. E-JRM: Electronic Journal of Management Research, 10(05).
Cholilah, A. U., & Sopingi, I. (2024). The Effect of Non-Performing Financing (NPF) and Inflation on Return on Assets (ROA) of Islamic Banking in Indonesia. Pelita: Journal of Islamic Studies of UII Dalwa Students, 2(1).
Felani, H., & Wahyuni, S. (2020). The Analysis Effect of Islamicity Performance Index on the Financial Performance of Sharia Commercial Banks in Indonesia. Journal of Economics Research and Social Sciences,4 (2), 129-139. https://doi.org/10.18196/jerss.v4i2.8389
Fuadah, N., & Hakimi, F. (2020). Financial Performance and Market Share in Foreign Exchange Islamic Commercial Banks in Indonesia: A Stakeholder Theory Perspective. Journal of IPTEKS Research,5 (2), 180-186. https://doi.org/10.32528/ipteks.v5i2.3656
Grilseda, N., & Riyadi, S. (2021). The effect of CAR, LDR, KAP and NPL on ROA of Go Public Banks listed on the IDX. Journal of Management Science,11 (1), 53. https://doi.org/10.32502/jimn.v11i1.3252
Haikal, M., & Efendi, S. (2024). Principles of Sharia Economic Law in Sharia Banking Law. MAQASIDI: Journal of Sharia and Law, 26-39. https://doi.org/10.47498/maqasidi.v4i1.2988
Hakim, L., Pamikatsih, M., & Setiabudi, H. (2023). Analysis of the Effect of CAR, NPF, and FDR on ROA of Islamic Commercial Banks. JESYA: Journal of Islamic Economics & Economics,6 (1), 661-673. https://doi.org/10.36778/jesya.v6i1.1008
Husna, S. (2024). The Effect of Murabahah, Istishna, and Ijarah Financing on the Financial Performance of Islamic Commercial Banks. JAKBS: Journal of Financial and Business Accounting, 1(04).
Imsar, & Harahap, R. D. (2023). The Effect of Capital Adequacy Ratio, Profit Sharing Ratio on Return On Asset with Non-Performing Financing as a Moderating Variable at Islamic Commercial Banks in Indonesia. As-Syirkah: Islamic Economic & Financial Journal,2 (2), 356-365. https://doi.org/10.56672/syirkah.v2i2.124
Iqbal, M., & Anwar, S. (2022). The Effect of Capital Adequacy Ratio, Non Performing Financing, Financing To Deposit Ratio, Operational Efficiency Ratio, and Profit Sharing Ratio on the Financial Performance of Islamic Commercial Banks. Journal of Revenue: Scientific Journal of Accounting,2 (2), 259-270. https://doi.org/10.46306/rev.v2i2.69
Ishak, I. M., & Pakaya, S. I. (2022). The Effect of Non-Performing Financing (NPF) on Return On Asset (ROA) in Indonesian Islamic Banking (Case Study on Islamic Commercial Banks Registered in Ojk in 2013-2020). JAMBURA: Scientific Journal of Management and Business,5 (1), 66-70. https://doi.org/10.37479/jimb.v5i1.14235
Kuncoro, R. G., & Anwar, S. (2021). Can Non Performing Financing Moderate CAR, PSR, ZPR on Profitability of Islamic Commercial Banks? Journal of Revenue: Scientific Journal of Accounting,2 (1), 107-115. https://doi.org/10.46306/rev.v2i1.53
Lubis, K. (2021). Analysis of the Effect of Mudharabah, Musyarakah, and Murabahah Financing on the Profitability of Islamic Banking registered with Bank Indonesia (BI) for the 2012-2016 Period. SINTAMA: Journal of Information Systems, Accounting and Management, 1(1).
Maqhfirah, S., & Fadhlia, W. (2019). The Effect of Intellectual Capital and Company Size on the Profitability of Islamic Commercial Banks (Study on Islamic Commercial Banks in Indonesia in 2013-2017). Scientific Journal of Accounting Economics Students,5 (1), 137-148. https://doi.org/10.24815/jimeka.v5i1.15482
Meilani, S. E. R., & Ahzar, F. A. (2024). Analysis of Sharia Financial Statements (2nd ed.). Yogyakarta: Gerbang Media Aksara.
Mustion, S., Wira, A., & Novia, A. (2023). The Influence Of Islamicity Performance Index And Non Performing Financing On Return On Asset Of Indonesian Sharia Commercial Bank. Journal of Masharif al-Syariah: Journal of Economics and Islamic Banking, 8(3).
Mutia, E., & Jannah, R. (2019). Islamicity Performance Index of Islamic Banking in Indonesia. Proceedings of the 1st Aceh Global Conference (AGC 2018). Proceedings of the 1st Aceh Global Conference (AGC 2018), Banda Aceh, Indonesia. https://doi.org/10.2991/agc-18.2019.65
Nurfajri, F. (2019). The Effect of Murabahah, Musyarakah, Mudharabah, and Ijarah on the Profitability of Islamic Commercial Banks in Indonesia. Monex Journal Research Accounting Polytechnic Tegal,8 (2). https://doi.org/10.30591/monex.v8i2.1231
Nurhayati, S., & Wasilah. (2019). Sharia Accounting in Indonesia (5th ed.). Jakarta: Salemba Empat.
Pangestika, M., & Mayasari, I. (2021). The Effect of DAR and TATO on ROA in Food and Beverage Subsector Companies on the IDX 2014-2020. Indonesian Journal of Economics and Management,2 (1), 197-207. https://doi.org/10.35313/ijem.v2i1.3137
Pradana, M. N. R. (2018). The Effect of Liquidity and External Variables on Non Performing Financing in Islamic Banks. Exis: Journal of Economic and Business Research,13 (2), 131-144. https://doi.org/10.26533/eksis.v13i2.286
Pradesyah, R., & Aulia, N. (2021). The Effect of Murabahah and Musyarakah Financing on Profitability at PT Bank Syariah Mandiri. AGHNIYA: Journal of Islamic Economics,3 (1), 76-89. https://doi.org/10.30596/aghniya.v3i1.5852
Pudyastuti, L. W. (2018). The Effect of Islamicity Performance Index and Financing To Deposit Ratio (Fdr) on the Financial Performance of Islamic Banking in Indonesia. Indonesian Journal of Business Management, 7(2), 170–181.
Putri, R. D. (2020). The Effect of Murabahah and Musyarakah Financing on the Profitability of Islamic Commercial Banks for the 2016-2018 Period. Tabarru' Journal: Islamic Banking and Finance,3 (1), 48-56. https://doi.org/10.25299/jtb.2020.vol3(1).5310
Putri, R. P., & Widiawati, W. (2022). The Role of Intellectual Capital in Moderating the Effect of Islamicity Performance Index on Profitability. Finansha: Journal of Sharia Financial Management,3 (2), 57-75. https://doi.org/10.15575/fjsfm.v3i2.20862
Quatro, C., & Asnaini, A. (2021). The Effect of Production Sharing Financing Volume and Murabahah Financing on the Financial Performance of Islamic Commercial Banks for the 2015-2020 period. Al-Intaj: Journal of Islamic Economics and Banking,7 (1), 33. https://doi.org/10.29300/aij.v7i1.4195
Rahayu, D. Y., & Kurniati, T. (2020). Analysis of the Effect of Intellectual Capital, Islamicity Performance Index and Corporate Social Responsibility on Profitability (Study on Islamic Commercial Banks for the 2014-2018 Period). COMPARTEMEN: Scientific Journal of Accounting, XIX(2), 85–98.
Rahmadita, N., & Amri, A. (2024). The Effect of Financial Leverage and Company Size on the Financial Performance of Islamic Commercial Banks for the 2018-2022 Period. 8(2).
Rahmatullah, N. Z., & Tripuspitorini, F. A. (2020). Analysis of the Effect of Islamicity Performance Index on the Profitability of Islamic Commercial Banks in Indonesia in 2014 - 2018. Journal of Applied Islamic Economics and Finance1, 1(1), 85–96.
Rizky, I. M. & Azib. (2021). The Effect of Mudharabah, Murabahah and Musyarakah Financing on Return On Assets. Journal of Management and Business Research,1 (1), 16-24. https://doi.org/10.29313/jrmb.v1i1.35
Sari, C. I. P., & Sulaeman. (2021). The Effect of Murabahah Financing, Mudharabah Financing and Musyarakah Financing on Profitability. Al Maal: Journal of Islamic Economics and Banking,2 (2), 160. https://doi.org/10.31000/almaal.v2i2.3111
Sofiani, L., & Siregar, E. M. (2022). Analysis of the Effect of ROA, CR and DAR on the Value of Food and Beverage Sector Companies. Scientific Journal of Unitary Accounting,10 (1), 9-16. https://doi.org/10.37641/jiakes.v10i1.1183
Subekti, W. A. P., & Wardana, G. K. (2022). The Effect of CAR, Asset Growth, BOPO, DPK, Financing, NPF and FDR on the ROA of Islamic Commercial Banks. INOBIS: Indonesian Journal of Business Innovation and Management,5 (2), 270-285. https://doi.org/10.31842/jurnalinobis.v5i2.229
Supardi, P. L. & Syafri. (2023). The Effect of CAR, NPF, FDR AND Bopo on Profitability (ROA) in Islamic Commercial Banks (Case Study: Islamic Banks Registered in Ojk 2018-2022). Trisakti Economic Journal,3 (2), 3243-3254. https://doi.org/10.25105/jet.v3i2.17944
Suryadi, N., & Yusnelly, A. (2024). The Effect of Various Financing on Profitability at Bank Mualamat Indonesia. Journal Of Islamic Finance And Accounting Research,3 (1), 48-60. https://doi.org/10.25299/jafar.2024.16499
Wahyuningtyas, I. P., & Lutfiana, D. (2022). The Effect Of Islamic Corporate Governance, Islamic Corporate Social Responsibility, And Islamicity Performance Index On The Financial Performance Of Sharia Commercial Banks In Indonesia. Al-Mal: Journal of Islamic Accounting and Finance,3 (2), 135-156. https://doi.org/10.24042/al-mal.v3i2.12096
Widyastuti, P. F., & Aini, N. (2021). The effect of CAR, NPL, LDR on bank PROFITABILITY (ROA) in 2017-2019. JIMAT: Scientific Journal of Undiksha Accounting Students,12 (03). https://doi.org/10.23887/jimat.v12i3.37828
Wirnawati, M., & Diyani, L. A. (2019). Testing CAR, NPF, FDR, and BOPO on Profitability in Islamic Commercial Banks. JMBI: Bina Insani Student Journal, 4(1).
Zoniara, N. (2023). The Effect of Murabahah and Musyarakah Financing on Profitability of Islamic Commercial Banks Listed on the Indonesia Stock Exchange for the 2019-2022 Period. JAKBS: Journal of Financial and Business Accounting, 1(3).
