Determination of Sharia Banking Profitability in Indonesia

Abstract

The purpose of this study is to analyze the determinants of profitability in Islamic banking in 2018-2021 which are listed on the IDX. The factors tested in this study are murabaha, musyarakah, financing deposit ratio, and bank size. The data used is secondary data obtained from www.idx.co.id. The sample for this study used four Islamic banking companies and were selected by purposive sampling. The analytical method used in this study shows that the murabahah, musyarakah and bank size variables have no significant effect because they cannot be used as a measure to increase profitability, what is needed is an increase in income. Meanwhile, financing deposit ratio has a significant effect on profitability because the higher the financing deposit ratio within certain limits, the higher the profitability.