Unveiling the drivers of islamic bank profitability : fundamental and macroeconomic factors in Asia

Purpose: This research aims to analyze the influence of fundamental and macroeconomic factors on the profitability of Islamic banking in Asia during 2019–2023. Methodology/Approach: This empirical study uses a quantitative descriptive approach analyzed through panel data regression using Eviews s...

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Main Authors: Mar'atus Sholihah, Guntur Kusuma Wardana
Format: Article
Language:English
Published: Universitas Muhammadiyah Malang 2025-02-01
Series:Jurnal Akademi Akuntansi
Subjects:
Online Access:https://ejournal.umm.ac.id/index.php/jaa/article/view/39373
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author Mar'atus Sholihah
Guntur Kusuma Wardana
author_facet Mar'atus Sholihah
Guntur Kusuma Wardana
author_sort Mar'atus Sholihah
collection DOAJ
description Purpose: This research aims to analyze the influence of fundamental and macroeconomic factors on the profitability of Islamic banking in Asia during 2019–2023. Methodology/Approach: This empirical study uses a quantitative descriptive approach analyzed through panel data regression using Eviews software version 12. The sample consists of 18 Islamic banks selected through purposive sampling from the 100 largest Islamic banks in Asia based on total assets during the 2019–2023 period, resulting in 1,080 monthly observation data obtained from the financial statements of each bank. Findings: The results show that CAR, BOPO, DPK, DER, and inflation have a significant effect on Return on Assets (ROA) partially, while GDP is not significant. Simultaneously, all variables affect ROA with a determination of 99.9%. Practical and Theoretical Contribution/Originality: This study highlights the importance of operational efficiency (low BOPO), capital management (CAR), DPK optimization, debt structure management (DER), and inflation control in enhancing the performance of Islamic banking in Asia. Although GDP is not significant, monitoring economic conditions remains essential to anticipate indirect impacts on profitability. Research Limitation: The findings are limited to the analysis of data from 2019–2023, and the study may not fully capture long-term trends or external factors affecting Islamic banking profitability.
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spelling doaj-art-aba9c7bce6f7492498c7aa0aac49b9f42025-08-20T02:59:47ZengUniversitas Muhammadiyah MalangJurnal Akademi Akuntansi2715-19642654-83212025-02-018110.22219/jaa.v8i1.39373Unveiling the drivers of islamic bank profitability : fundamental and macroeconomic factors in AsiaMar'atus Sholihah0Guntur Kusuma Wardana1Faculty of Economic, Maulana Malik Ibrahim State Islamic University, Malang, IndonesiaFaculty of Economic, Maulana Malik Ibrahim State Islamic University, Malang, Indonesia Purpose: This research aims to analyze the influence of fundamental and macroeconomic factors on the profitability of Islamic banking in Asia during 2019–2023. Methodology/Approach: This empirical study uses a quantitative descriptive approach analyzed through panel data regression using Eviews software version 12. The sample consists of 18 Islamic banks selected through purposive sampling from the 100 largest Islamic banks in Asia based on total assets during the 2019–2023 period, resulting in 1,080 monthly observation data obtained from the financial statements of each bank. Findings: The results show that CAR, BOPO, DPK, DER, and inflation have a significant effect on Return on Assets (ROA) partially, while GDP is not significant. Simultaneously, all variables affect ROA with a determination of 99.9%. Practical and Theoretical Contribution/Originality: This study highlights the importance of operational efficiency (low BOPO), capital management (CAR), DPK optimization, debt structure management (DER), and inflation control in enhancing the performance of Islamic banking in Asia. Although GDP is not significant, monitoring economic conditions remains essential to anticipate indirect impacts on profitability. Research Limitation: The findings are limited to the analysis of data from 2019–2023, and the study may not fully capture long-term trends or external factors affecting Islamic banking profitability. https://ejournal.umm.ac.id/index.php/jaa/article/view/39373Fundamental FactorsIslamic BanksMacroeconomicsProfitability
spellingShingle Mar'atus Sholihah
Guntur Kusuma Wardana
Unveiling the drivers of islamic bank profitability : fundamental and macroeconomic factors in Asia
Jurnal Akademi Akuntansi
Fundamental Factors
Islamic Banks
Macroeconomics
Profitability
title Unveiling the drivers of islamic bank profitability : fundamental and macroeconomic factors in Asia
title_full Unveiling the drivers of islamic bank profitability : fundamental and macroeconomic factors in Asia
title_fullStr Unveiling the drivers of islamic bank profitability : fundamental and macroeconomic factors in Asia
title_full_unstemmed Unveiling the drivers of islamic bank profitability : fundamental and macroeconomic factors in Asia
title_short Unveiling the drivers of islamic bank profitability : fundamental and macroeconomic factors in Asia
title_sort unveiling the drivers of islamic bank profitability fundamental and macroeconomic factors in asia
topic Fundamental Factors
Islamic Banks
Macroeconomics
Profitability
url https://ejournal.umm.ac.id/index.php/jaa/article/view/39373
work_keys_str_mv AT maratussholihah unveilingthedriversofislamicbankprofitabilityfundamentalandmacroeconomicfactorsinasia
AT gunturkusumawardana unveilingthedriversofislamicbankprofitabilityfundamentalandmacroeconomicfactorsinasia