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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| Format: | Article |
| Language: | English |
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Universitas Muhammadiyah Malang
2025-02-01
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| Series: | Jurnal Akademi Akuntansi |
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| 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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| format | Article |
| id | doaj-art-aba9c7bce6f7492498c7aa0aac49b9f4 |
| institution | DOAJ |
| issn | 2715-1964 2654-8321 |
| language | English |
| publishDate | 2025-02-01 |
| publisher | Universitas Muhammadiyah Malang |
| record_format | Article |
| series | Jurnal Akademi Akuntansi |
| 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 |