p–ISSN: 2723 – 6609 e-ISSN: 2745-5254Vol. 5, No. 11, November 2024 http://jist.publikasiindonesia.id/Indonesian Journal of Social Technology, Vol. 5, No. 11, November 2024 4917The Influence of DPK, CAR, NPF, FDR, and BOPO on theProfitability of Sharia Banks Listed on the Indonesia StockExchange in 2018-2022MubarokahUniversitas Esa Unggul, IndonesiaEmail: [email protected]*CorrespondenceABSTRACTKeywords: third-partyfunds; capital adequacyratio; non-performingloans; financing to depositratio; profitability.In the modern era, the banking industry is one of the keysectors that make a significant contribution to the economyof a country, including Indonesia. With the enactment ofLaw No. 10 of 1998 on banking which was later updated intoLaw No. 21 of 2008 on Islamic banking, the Indonesianbanking industry has received a positive response. Thisstudy aims to examine the contribution of several factors tothe financial performance of banks. These factors are ThirdParty Deposits (DPK), Capital Adequacy Ratio (CAR), Non-Performing Financing (NPF), Financing to Deposit Ratio(FDR), and Operating Expenses Operating Income (BOPO).The descriptive statistical analysis method is used in thisstudy, involving the incorporation of each variable with theaverage value, minimum value, maximum, and standarddeviation. The results of the analysis show that deposits hurtprofitability, CAR has a positive and significant impact onprofitability, NPF has a positive and significant impact onprofitability, FDR has a negative and significant impact onprofitability, and BOPO has a negative and significantimpact on profitability. Using Signal Theory, this studyhighlights the importance of management actions inconveying information to investors to reduce informationinequality between management and external parties. Thisstudy has limitations such as the use of secondary data thathas been published with time series data for only five years(2018-2022) and only involves five independent variables.IntroductionIn this modern era, the banking industry is one of the key sectors that make asignificant contribution to a country's economy. As a sector, the banking industry alsofunctions as the main supporter of financial services in other sectors. In Indonesia, theform of banking with a dual banking system, which involves two types of businessessince the enactment of Law No. 10 of 1998 concerning banking which was later updatedto Law No. 21 of 2008 on Islamic banking, the banking industry has received a positive Mubarokah
Indonesian Journal of Social Technology, Vol. 5, No. 11, November 2024 4918
response. Technological developments and digitalization that blur the boundaries
between the virtual and the real world have affected various aspects of life, including the
banking sector. To succeed and be able to transform the economic and business sectors,
an effective and safe environment is needed (Rivandi & Gusmariza, 2021). In the last
decade, Islamic banking in Indonesia has grown rapidly, both in terms of institutions and
the growth of assets, third-party funds, and financing. The increasing public awareness of
transacting by Sharia principles encourages sustainable growth in this sector. This
condition requires the Islamic banking industry to continue to improve its performance in
competing and seizing the market share of Islamic banking in Indonesia (Hanafiah, 2018).
According to (Aulia & Prasetiono, 2015), banks that are efficient in managing and
distributing funds will experience a positive impact on performance and maximize the
use of capital, banks can achieve the expected profits.
The evaluation of the performance of Islamic banks does not only depend on the
achievement of profits but also the extent of their compliance with sharia principles,
namely Mudharabah, Musyarakah, Wadiah, Al-Murabahah, Salam, Istihna', Ijarah,
Qardh, Rahn/Gadai, Hawalah/Hiwalah, Wakalah (Financial Services Authority, 2017).
Islamic banks, as business entities that operate based on Sharia principles, do not only
focus on achieving maximum profits. As a business institution, Islamic banks must be
focused on achieving success in this world and the hereafter. The main purpose of
establishing an Islamic bank is to contribute to realizing sharia maqashid (Mardianto &
Chintia, 2022). Achieving profits is one of the main goals for banks, which is desired by
both management and investors who have invested their capital. By obtaining profits
according to the stipulated provisions, banks can improve product quality, create new
investments, and improve the welfare of employees and company owners. Significant
profits are the measure of the bank's operational success.
ROA is one of the ratios used in evaluating the bank's management capabilities to
create profits from assets in its operations. To evaluate the financial performance of a
bank, an analysis is carried out on the criteria that must be met by the bank, referring to
the financial ratio standards commonly used in the banking industry. Profitability is one
of the components that need to be considered. The purpose of evaluating a company's
performance is to understand how well the company is making profits, which is its ability
to earn profits over a certain period. (Anggari & Dana, 2020). The bank's main mission
is to achieve an optimal level of profitability in carrying out its operations. Profitability
reflects the company's capacity to create profits by utilizing available resources.
Profitability is a key parameter for investors to evaluate the company's capabilities
in creating profits and rates of return for investors. (Alkhairani et al., 2020). Profit income
is often an indicator of a company's performance evaluation, where if the profit achieved
is high, then the company's performance is considered good, and vice versa. Corporate
profit is not only a benchmark of the company's capabilities in completing its obligations
to capital providers but also a factor in building the company's value that reflects its
prospects. (Suandi et al., 2023).
The Influence of DPK, CAR, NPF, FDR, and BOPO on the Profitability of Sharia Banks Listed
on the Indonesia Stock Exchange in 2018-2022
Indonesian Journal of Social Technology, Vol. 5, No. 11, November 2024 4919
The level of performance of Islamic commercial banks, with the measurement of
ROA, is influenced by several factors. (Y. Zulvia, 2020). (Mawaddah & Anisah, 2015)
Financing, Net Interest Margin (NIM), and Non-Performing Financing (NPF) are some
of the factors that affect the ROA of Sharia banks. (Ahmad Khairi et al., 2017)Ubaidillah
(2017) investigated various factors that affect ROA, such as CAR, Financing to Deposit
Ratio (FDR), Non-Performing Financing (NPF), Operating Costs compared to Operating
Income (BOPO), and funding sources. Third-party funds (DPK), NPF, CAR, FDR, and
receipt of funds from the public are some of the main sources of bank revenue. Deposits
can be used by banks for various investment purposes that generate income, including
credit distribution to customers. (F. E. Zulvia et al., 2020). With the increase in funds
from third parties, there will be significant credit growth, which in turn will increase the
bank's profitability.
According to (Moorcy et al., 2020), Financing to Deposit Ratio is a method used to
evaluate the level of bank liquidity. FDR indicates the ability of a bank to provide
financing using all its assets. A higher FDR ratio indicates a greater level of disbursement
of funds to customers, while a low FDR indicates the ineffectiveness of banks in
financing. (R. P. Astuti, 2022). Bank management needs to have the ability to effectively
manage its intermediation function. This includes raising funds and redistributing them
in the form of financing to the community. Increasing revenue is the main focus of banks,
with the hope of generating profit growth for banks in the end. (R. Astuti et al., 2022).
Bank performance is influenced by BOPO is a parameter in assessing the efficiency
and performance of banks in managing their operating activities, by comparing
operational costs with operating income. A smaller BOPO ratio signals the efficiency of
the bank's operating costs, while an increase in operating income can reduce profit before
tax, reducing overall profit in the end. A high BOPO ratio signals inefficiencies in
operational activities, where high operating costs are required to obtain operating income.
(Tarmidi & Widodo, 2021).
Method
In this study, there are four independent variables, namely Third Party Funds,
Capital Adequacy Ratio, Non-Performing Loans, Financing to Deposit Ratio, and
Operating Expenses on Operating Income, one dependent variable is Profitability. Third-
party funds are measured by looking at sales from savings, current accounts, and deposits
according to (Harapan et al., 2018). The Capital Adequacy Ratio is measured by looking
at the ratio of the number of Capital Banks to risk-weighted assets (ATMR) according to
Pujiati et al. (2020). Non-performing loans use a measure of the number of non-
performing loans compared to total credits looking at the reference Sari et al. (2019).
Financing To Deposit Ratio is a comparison between the total amount of loans disbursed
to third-party funds according to (Dehghan et al., 2017). Operating Expenses on
Operating Income looks at the total operating expenses with operating income according
to (Dehghan et al., 2017). As for Profitability, looking at profit after tax compared to total
assets refers to Hakiim (2018).
Mubarokah
Indonesian Journal of Social Technology, Vol. 5, No. 11, November 2024 4920
The data source used is secondary data, including the financial statements of Sharia
Banks listed on the IDX for the period 2018-2022. The data analysis applied in this study
is parametric statistics. The population consists of all Sharia Banks, with a total of 16
companies over five years. The sampling technique is nonprobability sampling with a
target sampling approach. This technique selects samples based on certain criteria.
(Sekaran & Bougie, 2016), and a sample of 71 companies was obtained.
In this study, a descriptive statistical analysis method was used. This approach
includes the incorporation of each variable with an average value, minimum and
maximum values, and standard deviation. This method also takes into account
conventional assumptions to assess the validity of the research model. To test the
hypothesis, statistical tools with multiple regression analysis. Regression equation:
Y=a+b1X1+b2X2+b3X3+b4X4+b5X5 + e ....................................................................
(1)
Where:
a: Constant
Y: Profitability
B1: Third Party Fund Coefficient
X1: Third Party Funds
B2: Capital Adequacy Ratio Coefficient
X2: Capital Adequacy Ratio
B3: Non-Performing Credit Coefficient
X3: Non-Performing Loans
B4: Financing to Deposit Ratio Coefficient
X4: Financing To Deposit Ratio
B5: Operating Expense Coefficient to Operating Revenue
X5: Operating Expenses on Operating Income
Results and Discussion
Descriptive Analysis
Table 1
Descriptive Statistical Test Results
Descriptive Statistics
N Minimum Maximum Mean Std.
Deviation
Deposi
t
71 6.020 8.910 7.2778
9
.659621
CAR 71 .123 3.905 .42701 .671296
NPF 71 .000 4.950 1.0590
4
1.397867
The Influence of DPK, CAR, NPF, FDR, and BOPO on the Profitability of Sharia Banks Listed
on the Indonesia Stock Exchange in 2018-2022
Indonesian Journal of Social Technology, Vol. 5, No. 11, November 2024 4921
FDR 71 .000 196.730 76.921
06
37.529155
BOPO 71 .813 428.400 90.957
97
53.258603
ROA 71 -2.480 7.810 1.2038
7
1.531474
Valid
N
(listwis
e)
71
Based on the table above regarding the descriptive statistical test, it is explained
that the number of observations (N) from this study is 71. The DPK variable (X1) shows
an average value of 7,277 of 69,390,887 out of a maximum total of 8.91 or 813,000,000.
This means that if funds from third parties increase, then the bank has the potential to get
high profits. This is influenced by the company's risk factors where the level of risk faced
by the company also affects the availability and cost of third-party funds. Companies with
lower risk have easier access to external funding sources at a lower cost.
The CAR variable (X2) shows an average value of 0.4270 or 42.70%, with a
maximum value of 3.95. This indicates that the bank has not managed to manage the CAR
to exceed the set limit. According to regulations, banks must meet a capital adequacy ratio
(CAR) of at least 8% (eight percent) which serves to cover the risk of losses that can
occur. The higher the CAR, the better the bank's ability to resolve the risk of loss from
each loan disbursed. This also shows that banks have not been able to finance their
operations properly, which has implications for the low contribution to the bank's
financial performance. Bank Muamalat Indonesia has a minimum value of 0.12 or 12%,
which indicates that the bank is not enough to finance its operations. This condition can
hurt the bank's financial performance.
The NPF variable (X3) had an average of 1.05% and the maximum value reached
4.95. This means that banks can manage non-performing loans effectively, which has the
potential to increase public trust. The larger the amount of non-performing loans, the
higher the reserve fund that must be prepared and the costs that must be borne for it. Bank
Aladin Syariah recorded a minimum NPF value of 0.00 or 0%, showing its ability to
manage financing well thanks to a clear source of payment so that the quality of
problematic financing becomes zero.
The FDR variable (X4) has an average value of 76.96% and a maximum value of
196.73%. This means that the disbursement of credit to customers allows the bank to
carry out its obligations to depositors who will take the money, which has been used by
the bank to distribute credit. Net interest is one of the components of income, and because
profit is part of the return on assets, the increase in net interest income will indirectly
increase profits, so that financial performance will increase. The minimum value recorded
Mubarokah
Indonesian Journal of Social Technology, Vol. 5, No. 11, November 2024 4922
is 0.00 or 0%. One of the banks that has an FDR with this minimum value is Aladin
Syariah. This happened because the bank had not yet distributed financing.
The BOPO variable (X5) with an average value of 90.95% and a maximum value
of 428.40%. This shows that the bank can manage BOPO so that the average achieved
does not exceed the standard set by the bank, which is 83-90%. Higher BOPO values
reflect a lack of efficiency in managing operational costs by management, which can
ultimately lead to a decrease in profitability. This factor is influenced by the growth of
the quality credit portfolio, where banks provide credit to customers with low risk and
high potential returns.
The profitability variable (Y) has an average value of 1.20% and a maximum value
of 7.81%. This means that in general, these companies can create quite good profits from
the assets they own. However, there are also companies that have a below-average ROA,
which is -2.48%. There are several factors that affect this, namely inefficient asset
management, high operational costs, or a decrease in sales.
Classical Assumption Analysis
1. Normality Test
Used to verify whether the data follows the normal distribution, concerning the
Kolmogorov-Smirnov significance value, the data normality test is carried out:
Table 2
Normality Test Results
One-Sample Kolmogorov-Smirnov Test
Unstandardi
zed Residual
N 71
Normal Parametersa,b Mean .0000000
Std.
Deviation
1.20125791
Most Extreme
Differences
Absolute .085
Positive .056
Negative -.085
Test Statistic .085
Asymp. Sig. (2-tailed) .200c,d
a. Test distribution is Normal.
b. Calculated from data.
c. Lilliefors Significance Correction.
d. This is a lower bound of the true significance.
All variables are normally distributed, as indicated by the Kolmogorov-Smirnov
significance value above α = 0.05. This means that all variables in this study can be used
for regression model analysis.
2. Autocorrelation Test
This test is run to detect autocorrelation with the Durbin-Watson test (DW):
Table 3
Autocorrelation Test Results
Model Summary
The Influence of DPK, CAR, NPF, FDR, and BOPO on the Profitability of Sharia Banks Listed
on the Indonesia Stock Exchange in 2018-2022
Indonesian Journal of Social Technology, Vol. 5, No. 11, November 2024 4923
Type R R
Square
Adjusted R
Square
Std. Error of
the Estimate
Durbin-
Watson
1 .620a .385 .337 1.246604 1.908
a. Predictors: (Constant), BOPO, NPF, FDR, DPK, CAR
b. Dependent Variable: ROA
The autocorrelation calculation is as follows: Number of Observations (n) = 71, k-
1 = 5-1, dL = 1.4987, dU = 1.7358, and d/R2 = 1.908. The results of the Durbin-Watson
(DW) test for this table show that this model does not experience autocorrelation
symptoms because the DW value of 1.908 is within the autocorrelation-free range.
Therefore, this model is declared free of autocorrelation.
Multicollinearity Test
The results of this test are used to assess whether or not there is a significant
relationship between independent variables (X). If multicollinearity occurs, then variable
X is not feasible to determine the contribution together.
Table 4
Multicolonnalarity Test Results
Coefficients
Type
Unstandardized
Coefficients
Standardized
Coefficients
t Sig.
Collinearity
Statistics
B Std. Error Beta Tolerance VIF
1 (Constant) 4.162 1.998 2.083 .041
Deposit -.384 .251 -.166 -1.529 .131 .808 1.237
CAR 1.078 .303 .472 3.553 .001 .535 1.868
NPF -.331 .117 -.302 -2.838 .006 .834 1.198
FDR -.002 .004 -.058 -.542 .590 .833 1.200
BOPO -.001 .004 -.034 -.253 .801 .522 1.917
So, in Table 5 it can be concluded that there is no multicollinearity between the free
variable X in regression. This can be seen in Statistics, where the tolerance value is close
to 1 and the VIF value is less than 10 for all independent variables X. Therefore, the
regression between the independent variable X does not indicate the existence of
multicollinearity, so the research variable can be used for regression model analysis.
3. Heteroscedasticity Test
The results of this test aim to detect whether the error variant of some X values is
not constant by looking at the graph between Y and residue. Based on calculations using
the SPSS application and scatter chart analysis:
Mubarokah
Indonesian Journal of Social Technology, Vol. 5, No. 11, November 2024 4924
Figure 2. Scatterplot Test Results
There is no heteroscedasticity in the regression between the free variable X. This is
indicated by the scatterplot, where the dots are scattered above and below the Y axis
without showing a specific pattern. Regression between variables X indicates that the
research variable is feasible to use for regression model analysis.
Multiple Linear Regression Analysis
The first stage of regression analysis is carried out to evaluate the influence of X on
variable Y. The results of this analysis use the SPSS application and are based on the
Standardization Beta coefficient.
Table 5
Multiple Linear Regression Results
Coefficients
Type Unstandardized
Coefficients
Standardize
d
Coefficients
t Sig.
B Std.
Error
Beta
1 (Const
ant)
4.162 1.998 2.083 .041
Deposi
t
-.384 .251 -.166 -1.529 .131
CAR 1.078 .303 .472 3.553 .001
NPF -.331 .117 -.302 -2.838 .006
FDR -.002 .004 -.058 -.542 .590
BOPO -.001 .004 -.034 -.253 .801
a. Dependent Variable: ROA
The Influence of DPK, CAR, NPF, FDR, and BOPO on the Profitability of Sharia Banks Listed
on the Indonesia Stock Exchange in 2018-2022
Indonesian Journal of Social Technology, Vol. 5, No. 11, November 2024 4925
The values of 1, 3, 4, and 5 are -0.384, -0.331, -0.002, and -0.001 with negative
regression coefficients, indicating an inverse relationship between the variables DPK,
NPF, FDR, and BOPO with profitability (Y). This means that if the variables of DPK,
NPF, FDR, and BOPO are reduced by one unit, profitability will increase. In contrast, a
value of 2 of 1,078 with a positive regression coefficient, indicates a direct relationship
between the CAR variable and profitability, which means that an increase in CAR per
unit will increase the profitability of one unit.
Hypothesis Testing
1. Test F
This research is aimed at assessing the simultaneous impact of the variables DPK,
CAR, NPF, FDR, and BOPO on profitability (ROA).
Table 6
Test Results F
ANOVAa
Type Sum of
Squares
Df Mean
Square
F Sig.
1 Regressio
n
63.167 5 12.633 8.130 .000b
Residual 101.011 65 1.554
Total 164.179 70
a. Dependent Variable: ROA
b. Predictors: (Constant), BOPO, NPF, FDR, DPK, CAR
Table 6 shows that the variables DPK, CAR, NPF, FDR, and BOPO simultaneously
affect profitability, with a significance value of 0.000 < 0.05, which means the hypothesis
is accepted.
2. Partial hypothesis test (T-test)
The t-test was conducted to evaluate the impact of the variables DPK, CAR, NPF,
FDR, and BOPO individually on profitability. This t-test was carried out using the SPSS
application by considering the t-column and the Significance (Sig) values obtained were:
Table 7
T Test Results
Coefficients
Type Unstandardized
Coefficients
Standardized
Coefficients
t Sig.
B Std.
Error
Beta
1 (Const
ant)
4.162 1.998 2.0
83
.041
Mubarokah
Indonesian Journal of Social Technology, Vol. 5, No. 11, November 2024 4926
Deposi
t
-.384 .251 -.166 -
1.5
29
.131
CAR 1.078 .303 .472 3.5
53
.001
NPF -.331 .117 -.302 -
2.8
38
.006
FDR -.002 .004 -.058 -
.54
2
.590
BOPO -.001 .004 -.034 -
.25
3
.801
a. Dependent Variable: ROA
The conclusions that can be drawn are as follows:
H1: The deposit variable has a significance value of 0.131 > 0.05, meaning that the
deposit variable does not have a significant impact on profitability (ROA). Therefore, the
H1 hypothesis was rejected.
H2: The CAR variable has a significance value of 0.001 < 0.05, meaning that the CAR
variable has a significant impact on profitability (ROA). Therefore, the H2 hypothesis is
accepted.
H3: The NPF variable has a significance value of 0.006 < 0.05, meaning that the NPF
variable has a significant impact on profitability (ROA). Therefore, the H3 hypothesis is
accepted.
H4: The FDR variable has a significance value of 0.590 > 0.05, meaning that the FDR
variable does not have a significant impact on profitability (ROA). Therefore, the H4
hypothesis is rejected.
H5: The BOPO variable has a significance value of 0.801 > 0.05, meaning that the BOPO
variable does not have a significant impact on profitability (ROA). Therefore, the H5
hypothesis was rejected.
The analysis of the results of this study was carried out using inferential statistical
methods and hypothesis tests. This discussion also involves a comparison with the theory
used in this study as well as the results of previous research that serve as a reference. The
entire discussion is presented in detail in the specified sections.
Table 8
Summary of Hypothesis Test Results
The Influence of DPK, CAR, NPF, FDR, and BOPO on the Profitability of Sharia Banks Listed
on the Indonesia Stock Exchange in 2018-2022
Indonesian Journal of Social Technology, Vol. 5, No. 11, November 2024 4927
Hypothesis Information Prob
Value
Result
H2 Deposits negatively impacted by
partial profitability
0.131 Accepted
H3 CAR has a positive impact on
partial profitability
0.001 Accepted
H4 NPF has a positive impact on
partial profitability
0.006 Accepted
H5 FDR negatively impacted
profitability partially
0.590 Rejected
H6 BOPO hurts profitability
partially
0.801 Rejected
Based on the hypothesis testing table above, it can be discussed as follows:
Deposits on Profitability
The results of the hypothesis analysis show that Third Party Deposits (DPK) hurt
profitability. Funds from third parties do not have a significant impact on ROA due to a
mismatch between the funds received and the amount of credit disbursed. This causes a
decrease in ROA or efficiency of banks in generating profits, where the interest income
obtained from credit distribution is not sufficient to offset the interest costs given to
depositors, Katuuk et al. (2018). A large amount of third-party funds should ideally be
followed by increased financing by banks. If this does not happen, banks could face a
decrease in profitability because the interest income earned from loans is insufficient to
compensate for the interest costs that must be given to depositors. This situation results
in a decrease in the ROA or efficiency of banks in generating profits, where the interest
income from credit disbursement is not enough to cover the interest costs that must be
given to depositors. (Sari and Murni, 2016). Not in line with Taswan's (2008) theory, the
more deposits that become the main source of banks, the more banks will place their funds
in the form of productive assets such as financing. The placement of funds in the form of
financing will contribute to the bank's interest income which affects profitability. This
finding is in line with Katuuk et al. (2018), that deposits hurt profitability.
CAR to Profitability
The results of the hypothesis test show that CAR has a significant impact on
profitability. When CAR increases, the ROA value will also increase, and vice versa
(Amalia and Diana, 2022). This is due to the function of CAR which aims to assess
whether the bank's capital is sufficient to support the bank's operations efficiently, can
cover unavoidable losses, and whether the bank's assets can be maintained in larger or
smaller amounts (Sari and Murni, 2016). Generally, banks try to maintain CAR by Bank
Indonesia's minimum provisions, which is 8%. Thus, banks demonstrate a better ability
to manage risks that may arise from risky credit or productive assets. In line with Olatayo
et al. (2019) who also found that CAR has a positive and significant impact on
Mubarokah
Indonesian Journal of Social Technology, Vol. 5, No. 11, November 2024 4928
profitability in the banking sector. This finding is in line with Putri & Dewi (2017),
Agbeja et al. (2015), and Sari & Murni (2017) that CAR has an impact on profitability.
NPF on Profitability
The results of the hypothesis analysis indicate that NPF has a significant positive
impact on profitability. The NPF ratio describes the level of financing risk faced by Sharia
Commercial Banks. The higher this ratio, the worse the bank's credit quality is due to the
larger the amount of non-performing financing, which indicates an increase in potential
problems for banks. These findings suggest that both high and low NPF will affect the
ROA level in question. This happens because banks have provided adequate reserves and
analyzed risks effectively so the problem will have an impact on the level of distribution
of bank profits to related parties (Yusuf 2017). This finding is in line with Syafrizal et al.
(2023) who also found that NPF has a positive and significant impact on profitability.
FDR on Profitability
The test results show that FDR has a significant negative impact on profitability.
The FDR variable partially affects profitability negatively. The distribution of financing
to prospective customers is carried out by applying the 5C principles, which include
Character, Capacity, Collateral, Capital, and Condition (Hakiim, 2018). If savings
increase but are not followed by an increase in financing, profitability will decrease. The
research of Muliawati & Khoiruddin (2015) also supports this finding, that the FDR
variable has a negative and insignificant impact on profitability. According to OJK
regulation Number 21/12/PBI/2019, FDR which indicates healthy bank liquidity is in the
range of 84% to 94%. If the FDR of an Islamic bank is below 84% or above 94%, the
bank does not function properly as an intermediary institution, which can jeopardize the
bank's continuity and threaten customer deposits (Anam & Khairunnisah, 2019).
BOPO on Profitability
The results of the analysis found that BOPO had a significant negative impact on
profitability. This study highlights that the higher the BOPO, the more inefficient the
management of operational costs is, which has the potential to reduce bank profitability
(Amalia & Diana, 2022). The study stated that the main operation of banks, namely
collecting and distributing public funds, causes banks' operating costs and income to be
greatly influenced by interest costs and interest receipts. Therefore, any increase in
operating costs can reduce profit before tax, which directly impacts the bank's
profitability.
According to Bank Indonesia regulations, banks are considered efficient if their
BOPO ratio is below 90%. Banks that meet health standards according to BI must have a
BOPO of ≤ 93.52% (Bank Indonesia Circular Letter No.6/23/DPNP dated May 31, 2004).
If BOPO exceeds this threshold, banks can be categorized as unhealthy and inefficient
(Capriani & Dana, 2016). In line with Sofyan (2022) and Wardoyo et al. (2022), BOPO
hurts profitability.
Conclusion
The Influence of DPK, CAR, NPF, FDR, and BOPO on the Profitability of Sharia Banks Listed
on the Indonesia Stock Exchange in 2018-2022
Indonesian Journal of Social Technology, Vol. 5, No. 11, November 2024 4929
Based on the findings and analysis, the conclusion is that CAR and NPF have a
significant positive impact on profitability. Meanwhile, deposits, FDR, and BOPO have
a significant negative impact on profitability. This study has limitations that need to be
improved, including that the data used is only secondary data that has been published,
with a time series data of only 5 years, namely 2018-2022. In this study, there are only
five independent variables, namely DPK, CAR, NPF, FDR, and BOPO. It is hoped that
further research will add other variables to provide a better picture of profitability such
as increasing market share and profit-sharing financing.
From the results of this study, the managerial implications that must be carried out
are that companies must implement consistent accounting policies for their DPK, CAR,
NPF, FDR, and BOPO. It is important to ensure that the values of DPK, CAR, NPF, FDR,
and BOPO recorded in the financial statements reflect the true value and can be accounted
for. Consistent accounting policies are accounting principles in which companies must
apply the same methods of measuring, acknowledging, and reporting similar transactions
from period to period. By implementing consistent accounting policies, companies can
ensure that the financial statements presented reflect the actual financial condition and
can be compared consistently from one period to another.
Mubarokah
Indonesian Journal of Social Technology, Vol. 5, No. 11, November 2024 4930
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