Prosperia: Journal of Economic Development, Accounting, and Global Markets
Vol. 1 No. 2 (2026): : May: Prosperia: Journal of Economic Development, Accounting, and Global Marke

The Role of Profitability in Assessing The Financial Health of Islamic Banks

Dina Febrianti .P (Institut Agama Islam Negeri Bone)
Reski Ros Cahayana (Institut Agama Islam Negeri Bone)



Article Info

Publish Date
27 May 2026

Abstract

This inquiry establishes a comprehensive conceptual framework validating the structural role of profitability as an active diagnostic instrument in determining the microprudential stability of Sharia compliant financial institutions. Operating within an integrated systematic literature review design, the analytical architecture synthesizes macro level global industry standards with micro level sovereign statutory directives to trace the transmission pathways of institutional earnings. The qualitative data reduction reveals that fundamental rentability metrics including return on assets, return on equity, and net operating margins transcend basic accounting records to actively dictate the broader composite health classifications of modern banking corporations. Through meticulous thematic synthesis and conceptual triangulation, the findings demonstrate that sustainable profit generation directly strengthens operational resilience by accelerating organic capital retention, optimizing risk profile structures, and fortifying corporate governance efficiency. Ultimately, long term organizational survival requires a well integrated revenue optimization strategy that balances prudent asset liability management with aggressive digital banking transformations. Maintaining this structural equilibrium remains highly essential for securing public depositor trust and preserving systemic stability across competitive market landscapes.

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Journal Info

Abbrev

prosperia

Publisher

Subject

Description

Prosperia: Journal of Economic Development, Accounting, and Global Markets is a peer-reviewed academic journal dedicated to publishing high-quality scholarly works in the fields of economics, accounting, finance, and global market studies. The journal provides an international platform for ...