Analysis of The Factors that Aff ecting Islamic Bank Profitabilit (Empirical Study on Islamic Bank in Indonesia Period 2012-2014)

Raden Andry Ardiansyah, K Khairunnisa,, Annisa Nurbaiti

Abstract

Islamic Banking is one sector that has the potential to competein the ASEAN Economy Community. As the country withthe largest muslim population in the world, Indonesia has the potential to be the center of the development of Islamic bankingand finance industy in ASEAN and the world. However, these advantages still can be maximized by islamic banking inIndonesia to obtain higher profitability.This research aims to analyze the influence of murabaha financing, Non Performing Finance and Financing to DepositRatio to profitability Islamic banks in Indonesia that are projected by Return on Assets. The population in this study is theIslamic Banks in Indonesia. Sample selection technique used is purposive sampling and obtained nine Islamic Banks with aperiod of study in 2012-2014. Methods of data analysis in thisresearch is panel data regression analysis using Eviews softwareversion 8.The results showed that murabaha financing, Non Performing Finance and Financing to Deposit Ratio simultaneouslyhas significant effect on profitability. While partially, murabaha financing no significant effect on profitability, Non PerformingFinance significant negative effect on profitability, and Financing to Deposit Ratio significant positive effect on profitability.

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