DETERMINING THE PROFITABILITY OF ISLAMIC BANKS WORLDWIDE: NET PROFIT MARGIN, NON-PERFORMING FINANCING, DEBT-TO-ASSET RATIO, AND THIRD-PARTY FUNDS
Abstract
This study investigates the determinants of profitability in Islamic banks worldwide by examining the influence of Net Profit Margin (NPM), Non-Performing Financing (NPF), Debt-to-Asset Ratio (DAR), and Third-Party Funds (DPK) on Return on Assets (ROA). Using a quantitative descriptive approach, secondary data were collected from 20 Islamic banks across 12 countries, selected from The 100 Strongest Islamic Banks in the World by The Asian Banker for the period 2019–2023. Panel data regression with the Random Effect Model (REM) was employed after conducting Chow, Hausman, and Lagrange Multiplier tests to determine the most appropriate model. The results reveal that NPM and DAR have a significant partial effect on ROA, while NPF and DPK do not show a significant impact individually. However, collectively, the four variables significantly influence the profitability of Islamic banks, with an Adjusted R-squared of 36.24%. These findings highlight the importance for Islamic banks to enhance efficiency, manage debt structures prudently, and optimize fund allocation through productive financing in order to strengthen profitability at the global level.
References
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Boukhatem, J., & Ben Moussa, F. (2017). The effect of Islamic banks on GDP growth: Some evidence from selected MENA countries. Borsa Istanbul Review, 18(3), 231–247. https://doi.org/10.1016/j.bir.2017.11.004
Dessriadi, G. A., Harsuti, H., Muntahanah, S., & Murdijaningsih, T. (2022). Pengaruh Kebijakan Dividen, Leverage dan Profitabilitas terhadap Nilai Perusahaan LQ-45 yang Terdaftar di Bursa Efek Indonesia. Ekonomis: Journal of Economics and Business, 6(1), 195. https://doi.org/10.33087/ekonomis.v6i1.506
Dewi, A. S., Wardana, G. K., & Yuliana, I. (2025). The Effect of NPM, NPF, DAR, CIR, and DPK on Profitability (ROA) of Islamic Banks in the World. LAA MAISYIR : Jurnal Ekonomi Islam, 12(1). https://doi.org/10.24252/lamaisyir.v12i1.56469
Fitriana, D., & Ciptanila Y., (2024). Pengaruh Dana Pihak Ketiga dan Financing to Deposit Ratio terhadap Profitability Bank Syariah. https://doi.org/10.35384/jemp.v10i1.485
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Kasmir. (2015). Analisis Laporan Keuangan. Jakarta: Raja Grafindo Persada.
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Mufidah, F., Purnama, S., & Hasanudin, E. (2021). Pengaruh Net Interest Margin (NIM) dan Net Profit Margin (NPM) Terhadap Return Saham Pada Perusahaan Perbankan yang Terdaftar di Bursa Efek Indonesia. Jurnal Studia Akuntansi dan Bisnis (The Indonesian Journal of Management & Accounting), 9(1), 65 - 76. https://doi.org/10.55171/jsab.v9i1.574.
Laylia, N. N., & Munir, H. M. (2022). Pengaruh CR, DER dan NPM terhadap Harga Saham EPS sebagai Variabel moderasi. Jurnal Ekonomi Dan Bisnis, 10(2), 201 - 206. https://doi.org/10.34308/eqien.v10i2.584.
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Muhammad, R., & Azmiana, R. (2021). Determinan Struktur Modal Perbankan Syariah Asia Dan Eropa. Media Riset Akuntansi, Auditing & Informasi, 21(1), 51–74. https://doi.org/10.25105/mraai.v21i1.9089
Nabela, I., Fitriano, Y., & Hidayah, R. (2023). Pengaruh Net Profit Margin (NPM) Return On Asset (ROA), Return On Equity (ROA) Terhadap Nilai Perusahaan PT. Astra International TBK Tahun 2017-2021. Jurnal Ekombis Review, 11(2), 1153-1168. https://doi.org/10.37676/ekombis.v11i2
Nani. (2022). Step by Step Analisis Regresi Data Panel Menggunakan E-views. Serang, Visi Intelegensia.
Prasetyoningrum. (2015). Risiko Bank Syariah. Yogyalarta, Pustaka Pelajar.
Putra, S. E., & Wardana, G. K. (2022). Pengaruh Pembiayaan Murabahah, KAP dan DPK terhadap Earning After Tax pada Bank Umum Syariah di Indonesia. Jurnal Ilmiah Ekonomi Islam, 8(2), 2281. https://doi.org/10.29040/jiei.v8i2.5197
Sari, I., & Aisyah, E. N. (2022). Pengaruh FDR, PSR, Zakat Performance Ratio, dan Dana Pihak Ketiga Terhadap Market Share Dengan ROA Sebagai Variabel Mediasi. Jurnal Ilmiah Ekonomi Islam, 8(3), 2765. https://doi.org/10.29040/jiei.v8i3.6766
Sari, T, E., Wahyuni, S., & Hasan, Z. (2024). Theoretical Analysis of the Effectiveness of the Sharia Financial System in Facing the Global Economic Crisis. Rihlah Iqtishad: Jurnal Bisnis dan Keuangan Islam, 1(2), 56–70. https://doi.org/10.61166/rihlah.v1i2.19
Marliastutik, I, S., & Wardana, G, K., (2024). Bukti Return Saham Perbankan Syariah di Asia: EPS, PER, NPM, dan ROE Dengan Nilai Tukar Sebagai Variabel Moderasi. Nisbah: Jurnal Perbankan Syariah, 10(1), 59 - 73. https://doi.org/10.30997/jn.v10i2.15767
Roficoh, L., W., & Bakri, W. (2018). Tinjauan Empirik Perkembangan Sistem Ekonomi Syariah di Eropa. Ijtihad : Jurnal Hukum dan Ekonomi Islam, 12(1), 44. https://doi.org/10.21111/ijtihad.v12i1.2547
Shoumi, I. N. H., & Wardana, G. K. (2024). Penentuan Nilai Perusahaan dengan Kebijakan Dividen sebagai Variabel Moderasi: Bukti Perbankan Islam di Dunia. Maliki Islamic Economic Journal, 4(1), 27 - 42. https://doi.org/10.18860/miec.v4i1.26956
Subekti, W, A, P., & Wardana, G, K., (2022). Pengaruh CAR, Asset Growth, BOPO, DPK, Pembiayaan, NPF dan FDR Terhadap ROA Bank Umum Syariah. INOBIS: Jurnal Inovasi Bisnis dan Manajemen Indonesia, 05(02), 270–285. https://doi.org/https://doi.org/10.31842/jurnalinobis.v5i2.229
Wardana, G., & Abdani, F. (2023). Bukti Efisiensi Bank Syariah Di Indonesia Dan Malaysia: ROA, BANK SIZE DAN NPF. https://doi.org/10.32812/jibeka.v17i1.1026
Wardana, G., Aisyah Barlian, N., & Ichsan, C. F. (n.d.). Proceeding Iconies Faculty Of Economics Uin Maulana Malik Ibrahim Malang World Sharia Banking Capital Structure: Value, Size, Profitability And Dividend Policy.
Wardana, G. K., & Barlian, N. A. (2022). Determinant of Islamic Banks on the World Capital Structure. IQTISHODUNA: Jurnal Ekonomi Islam, 11(2), 195–206. https://doi.org/10.54471/iqtishoduna.v11i2.1874
Widardjono. (2013). Ekonometrika, Pengantar dan Aplikasi. Yogyakarta: Ekonosia.
https://tabinsights.com. (2024).
Ainun Masruroh, S., & Kusuma Wardana, G. (n.d.). Journal of Economics, Finance and Management Studies The Influence of Asset Growth, Profitability, and Firm Size on the Capital Structure of Islamic Banking in the World Period 2011-2020. https://doi.org/10.47191/jefms/v5-i6-11
Ayu, D., Afifah, N., Guntur, &, & Wardana, K. (2022). Pengaruh Likuiditas, Efektivitas, dan Pembiayaan Bagi Hasil Terhadap Profitabilitas Perbankan Syariah Di Indonesia. Jurnal Tabarru’: Islamic Banking and Finance, 5 (1). https://doi.org/10.25299/jtb.2022.vol5(1).9204
Boukhatem, J., & Ben Moussa, F. (2017). The effect of Islamic banks on GDP growth: Some evidence from selected MENA countries. Borsa Istanbul Review, 18(3), 231–247. https://doi.org/10.1016/j.bir.2017.11.004
Dessriadi, G. A., Harsuti, H., Muntahanah, S., & Murdijaningsih, T. (2022). Pengaruh Kebijakan Dividen, Leverage dan Profitabilitas terhadap Nilai Perusahaan LQ-45 yang Terdaftar di Bursa Efek Indonesia. Ekonomis: Journal of Economics and Business, 6(1), 195. https://doi.org/10.33087/ekonomis.v6i1.506
Dewi, A. S., Wardana, G. K., & Yuliana, I. (2025). The Effect of NPM, NPF, DAR, CIR, and DPK on Profitability (ROA) of Islamic Banks in the World. LAA MAISYIR : Jurnal Ekonomi Islam, 12(1). https://doi.org/10.24252/lamaisyir.v12i1.56469
Fitriana, D., & Ciptanila Y., (2024). Pengaruh Dana Pihak Ketiga dan Financing to Deposit Ratio terhadap Profitability Bank Syariah. https://doi.org/10.35384/jemp.v10i1.485
Hidayat, A. R., & Trisanty, A. (2020). Analisis Market Share Perbankan Syariah di Indonesia. At-Taqaddum, 12(2), 183–200. https://doi.org/10.21580/at.v12i2.6449
Indartini, M., & Mutmainah. (2024). Analisis Data Kuantitatif Uji Instrumen, Uji Asumsi Klasik, Uji Korelasi dan Regresi Linier Berganda. Lakeisha.
Ishak, I. M., & Pakaya, S. I. (2022). Pengaruh Non-Performing Financing (NPF) Terhadap Return On Asset (ROA) Di Perbankan Syariah Indonesia (Studi Kasus Pada Bank Umum Syariah Yang Terdaftar Di Ojk Tahun 2013-2020). JAMBURA, 5(1), 2022. https://doi.org/10.37479/jimb.v5i1.14235
Islamic Financial Services Board. (2023). Islamic Financial Services Industry Stability Report. www.ifsb.org
Ismail. (2010). Manajemen Perbankan: Dari Teori Menuju Aplikasi (1st ed.). Jakarta: Kencana.
Junaidi. (2019). Processing Data Penelitian Kuantitatif Menggunakan Eviews. Jakarta: Wordpress.
Kasmir. (2015). Analisis Laporan Keuangan. Jakarta: Raja Grafindo Persada.
Khasanah, U., Tibrizi, A., & Wicaksono, S. (2021). Intermediary performance of Islamic banks in the disruption era: Does it contribute to economic growth? Banks and Bank Systems, 16(1), 103–115. https://doi.org/10.21511/bbs.16(1).2021.10
Kristin, A. P. (2019). Analisis Determinan Efisiensi Bank Umum Syariah Indonesia Dengan Variabel Moderating Profitabilitas. MALIA: Journal of Islamic Banking and Finance, 3(1).
Mufidah, F., Purnama, S., & Hasanudin, E. (2021). Pengaruh Net Interest Margin (NIM) dan Net Profit Margin (NPM) Terhadap Return Saham Pada Perusahaan Perbankan yang Terdaftar di Bursa Efek Indonesia. Jurnal Studia Akuntansi dan Bisnis (The Indonesian Journal of Management & Accounting), 9(1), 65 - 76. https://doi.org/10.55171/jsab.v9i1.574.
Laylia, N. N., & Munir, H. M. (2022). Pengaruh CR, DER dan NPM terhadap Harga Saham EPS sebagai Variabel moderasi. Jurnal Ekonomi Dan Bisnis, 10(2), 201 - 206. https://doi.org/10.34308/eqien.v10i2.584.
Martias, A. (2017). Analisa Kinerja Keuangan Perusahaan Pendekatan Rasio Penentu di Bursa Efek Indonesia. Moneter: Jurnal Akuntansi dan Keuangan. 4(2). 99-190. https://doi.org/10.31294/moneter.v4i2.1987.
Muhammad, R., & Azmiana, R. (2021). Determinan Struktur Modal Perbankan Syariah Asia Dan Eropa. Media Riset Akuntansi, Auditing & Informasi, 21(1), 51–74. https://doi.org/10.25105/mraai.v21i1.9089
Nabela, I., Fitriano, Y., & Hidayah, R. (2023). Pengaruh Net Profit Margin (NPM) Return On Asset (ROA), Return On Equity (ROA) Terhadap Nilai Perusahaan PT. Astra International TBK Tahun 2017-2021. Jurnal Ekombis Review, 11(2), 1153-1168. https://doi.org/10.37676/ekombis.v11i2
Nani. (2022). Step by Step Analisis Regresi Data Panel Menggunakan E-views. Serang, Visi Intelegensia.
Prasetyoningrum. (2015). Risiko Bank Syariah. Yogyalarta, Pustaka Pelajar.
Putra, S. E., & Wardana, G. K. (2022). Pengaruh Pembiayaan Murabahah, KAP dan DPK terhadap Earning After Tax pada Bank Umum Syariah di Indonesia. Jurnal Ilmiah Ekonomi Islam, 8(2), 2281. https://doi.org/10.29040/jiei.v8i2.5197
Sari, I., & Aisyah, E. N. (2022). Pengaruh FDR, PSR, Zakat Performance Ratio, dan Dana Pihak Ketiga Terhadap Market Share Dengan ROA Sebagai Variabel Mediasi. Jurnal Ilmiah Ekonomi Islam, 8(3), 2765. https://doi.org/10.29040/jiei.v8i3.6766
Sari, T, E., Wahyuni, S., & Hasan, Z. (2024). Theoretical Analysis of the Effectiveness of the Sharia Financial System in Facing the Global Economic Crisis. Rihlah Iqtishad: Jurnal Bisnis dan Keuangan Islam, 1(2), 56–70. https://doi.org/10.61166/rihlah.v1i2.19
Marliastutik, I, S., & Wardana, G, K., (2024). Bukti Return Saham Perbankan Syariah di Asia: EPS, PER, NPM, dan ROE Dengan Nilai Tukar Sebagai Variabel Moderasi. Nisbah: Jurnal Perbankan Syariah, 10(1), 59 - 73. https://doi.org/10.30997/jn.v10i2.15767
Roficoh, L., W., & Bakri, W. (2018). Tinjauan Empirik Perkembangan Sistem Ekonomi Syariah di Eropa. Ijtihad : Jurnal Hukum dan Ekonomi Islam, 12(1), 44. https://doi.org/10.21111/ijtihad.v12i1.2547
Shoumi, I. N. H., & Wardana, G. K. (2024). Penentuan Nilai Perusahaan dengan Kebijakan Dividen sebagai Variabel Moderasi: Bukti Perbankan Islam di Dunia. Maliki Islamic Economic Journal, 4(1), 27 - 42. https://doi.org/10.18860/miec.v4i1.26956
Subekti, W, A, P., & Wardana, G, K., (2022). Pengaruh CAR, Asset Growth, BOPO, DPK, Pembiayaan, NPF dan FDR Terhadap ROA Bank Umum Syariah. INOBIS: Jurnal Inovasi Bisnis dan Manajemen Indonesia, 05(02), 270–285. https://doi.org/https://doi.org/10.31842/jurnalinobis.v5i2.229
Wardana, G., & Abdani, F. (2023). Bukti Efisiensi Bank Syariah Di Indonesia Dan Malaysia: ROA, BANK SIZE DAN NPF. https://doi.org/10.32812/jibeka.v17i1.1026
Wardana, G., Aisyah Barlian, N., & Ichsan, C. F. (n.d.). Proceeding Iconies Faculty Of Economics Uin Maulana Malik Ibrahim Malang World Sharia Banking Capital Structure: Value, Size, Profitability And Dividend Policy.
Wardana, G. K., & Barlian, N. A. (2022). Determinant of Islamic Banks on the World Capital Structure. IQTISHODUNA: Jurnal Ekonomi Islam, 11(2), 195–206. https://doi.org/10.54471/iqtishoduna.v11i2.1874
Widardjono. (2013). Ekonometrika, Pengantar dan Aplikasi. Yogyakarta: Ekonosia.
https://tabinsights.com. (2024).
Published
2025-10-15
How to Cite
WARDANA, Guntur Kusuma; DEWI, Annisa Sinta; BARLIAN, Noer Aisyah.
DETERMINING THE PROFITABILITY OF ISLAMIC BANKS WORLDWIDE: NET PROFIT MARGIN, NON-PERFORMING FINANCING, DEBT-TO-ASSET RATIO, AND THIRD-PARTY FUNDS.
Proceedings of the International Conference of Islamic Economics and Business (ICONIES), [S.l.], v. 11, n. 1, p. 391-402, oct. 2025.
ISSN 2541-3333.
Available at: <https://conferences.uin-malang.ac.id/index.php/iconies/article/view/3350>. Date accessed: 15 may 2026.
Section
Articles
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