The Influence of Sharia Supervisory Board Composition and Islamicity Performance Index on Profitability (Study on Islamic Commercial Banks in Indonesia and Malaysia)

Sumiati Sumiati (Politeknik Negeri Bandung)
Nurdin Nurdin (Politeknik Negeri Bandung)
Fifi Afiyanti Tripuspitorini (Politeknik Negeri Bandung)
Hazma Hazma (Politeknik Negeri Bandung)

Journal of Applied Islamic Economics and Finance
Vol. 6 No. 2 (2026): Journal of Applied Islamic Economics and Finance (February 2026)

This study examines the effect of the composition of Sharia Supervisory Board (SSB) and Islamicity Performance Index on profitability of Islamic commercial banks in Indonesia and Malaysia. The dependent variable used is Return on Assets (ROA). The composition of the SSB is measured through size and frequency of SSB meetings, while Islamicity Performance Index consists of Profit Sharing Ratio (PSR), Zakat Performance Ratio (ZPR), and Islamic Income vs Non-Islamic Income (IIvsNII). The study uses secondary data from the annual reports of 20 Islamic commercial banks during the period 2018–2023. The method used is panel data regression with a descriptive quantitative approach. The results of the study are expected to provide theoretical and practical contributions to the development of profitability improvement strategies based on Islamic principles.