In Indonesia, the development of Islamic banking has shown significant growth from year to year. One of the pioneers of Islamic banking in Indonesia is Bank Muamalat Indonesia. In its early establishment, Bank Muamalat Indonesia experienced strong growth. However, this condition did not last long; starting in 2018, Bank Muamalat Indonesia experienced a significant decline in profits. This study aims to examine the effect of Financing, Third-Party Funds, Non-Performing Financing (NPF), and Capital Adequacy Ratio (CAR) on the Profitability of Bank Muamalat Indonesia. This research employs a quantitative approach, with the independent variables consisting of Financing, Third-Party Funds, Non-Performing Financing (NPF), and Capital Adequacy Ratio (CAR), while the dependent variable is Profitability. The sampling technique used in this study is non-probability sampling. The data source is secondary data obtained from the quarterly financial statements of Bank Muamalat Indonesia for the period 2013–2023. The analytical techniques applied include classical assumption tests, hypothesis testing, and multiple linear regression analysis using SPSS version 22. The partial test results indicate that Financing has a positive and significant effect on profitability. Third-Party Funds have a positive and significant effect on profitability. Non-Performing Financing (NPF) has a negative and significant effect on profitability, while the Capital Adequacy Ratio (CAR) has a positive and significant effect on profitability. Simultaneously, the variables of financing, third-party funds, NPF, and CAR collectively affect profitability. This is evidenced by the calculated F-value of 3.658, which is greater than the F-table value (3.658 > 2.61).
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