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

Sholihah, Mar’atus and Wardana, Guntur Kusuma ORCID: https://orcid.org/0000-0001-7901-1228 (2025) Unveiling the drivers of islamic bank profitability : fundamental and macroeconomic factors in asia. Jurnal Akademi Akuntansi. ISSN 2715-1964

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Abstract

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.

Item Type:	Journal Article
Keywords:	Fundamental Factors; Islamic Banks; Macroeconomics; Profitability.
Subjects:	14 ECONOMICS > 1401 Economic Theory > 140102 Macroeconomic Theory
Divisions:	Faculty of Economics > Department of Islamic Banking
Depositing User:	Guntur Kusuma Wardana
Date Deposited:	27 Jan 2026 09:03

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