Analysis of Financial Ratio Determinants on the Profitability of Islamic Banking in Indonesia Period 2022-2024: Analisis Faktor-Faktor Penentu Rasio Keuangan terhadap Profitabilitas Perbankan Syariah di Indonesia Periode 2022-2024

karina aurelia (Faculty of Economics and Management UNIDA Gontor, Indonesia)
Miftahul Huda (Faculty of Economics and Management UNIDA Gontor, Indonesia)

Journal of Islamic Economics and Philanthropy
Vol. 9 No. 1 (2026): August

Profitability is fundamental parameter for evaluating the performance and sustainability of Islamic commercial banks. This study aims to analyze the impact of the BOPO, FDR and CAR on the NPM The research subjects include BSI, Bank Muamalat, BCA Syariah, and Bank Mega Syariah for the period 2022–2024. The research method employs a quantitative approach using the Panel Vector Autoregression (PVAR) because no variables found were found to be cointegrated in the cointegration test, based on secondary data from quarterly financial reports. Test results using Eviews 13 indicate in Panel VAR Estimates, the BOPO and CAR variables have no significant effect on NPM, while FDR has a significant positive effect on NPM. The findings of the Variance Decomposition confirm that the FDR is the primary determinant in explaining fluctuations in the NPM. This is proven by increasing progressively from the beginning of the period until the end of the period.