Miagasela Aprilia Ramadhani, Miagasela Aprilia Ramadhani and Guntur Kusuma Wardana, Guntur Kusuma Wardana 
ORCID: https://orcid.org/0000-0001-7901-1228
(2026)
Internal Determinants of Islamic Bank Profitability: A Cross-Country Panel Data Analysis.
Maslahah : Jurnal Hukum Islam dan Perbankan Syariah, 17 (1).
pp. 51-75.
ISSN 2807-8403
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Abstract
Islamic banks face increasing pressure to sustain profitability amid post-pandemic structural changes. This study examines the effects of operational efficiency (CIR), capital adequacy (CAR), asset quality (NPF), firm size, and liquidity (FDR) on profitability (ROA) during 2022–2025. A quantitative approach was employed using panel data and the Fixed Effect Model (FEM) on 195 quarterly observations from 13 Islamic banks across nine countries. The sample was purposively selected from The Asian Banker’s Top 100 Strongest Islamic Banks in the World based on data availability and regional representation. The findings reveal that all independent variables jointly explain 67.44% of the variation in ROA (F = 78.287; p < 0.001). Partially, CIR (coef. 1.006), CAR (coef. 7.747), and FDR (coef. 0.138) have positive and significant effects on ROA, indicating that operational efficiency, strong capital positions, and adequate liquidity are key drivers of profitability. In contrast, NPF (coef. −5.798) exerts a negative and significant effect, suggesting that deteriorating asset quality reduces bank earnings. Firm size shows no significant influence on profitability (p = 0.121). These findings contribute to the cross-country Islamic banking literature and provide practical implications for regulators and bank managers in strengthening sustainable profitability.
| Item Type: | Journal Article |
|---|---|
| Keywords: | Operational Efficiency, Capitalization, Asset Quality, Company Size, Liquidity, Profitability |
| Subjects: | 15 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 1502 Banking, Finance and Investment |
| Divisions: | Faculty of Economics > Department of Islamic Banking |
| Depositing User: | Guntur Kusuma Wardana |
| Date Deposited: | 10 Jul 2026 15:45 |
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