Abstract:
As a country with the majority of Muslims makes the growth of Islamic banking grow rapidly in Indonesia. In line with the Islamic bank’s growth, they must be able to maintain and improve their financial performance to know how good the bank’s health is and how the bank must maintain its funds and risk. One indication of a good bank’s performance is the low level Non-Performing Financing (NPF) since financing is one of the main activities in the bank. This study aims to find which financial ratios that consisting of FDR, CAR, ROA, ROE, NPM, BOPO, ZIS funds to net profit ratio, and Qardh funds to total assets ratio that could be the determinant of financial performance measurement proxied by NPF on Islamic Commercial Bank (BUS) in Indonesia. The population in this study is all Islamic commercial banks registered in the Financial Services Authority (OJK) that has been operating for a minimum of two (2) years during the 2009-2018 period. The research data are quantitative data obtained from the annual financial statements of each bank for ten (10) years in the 2009-2018 period. The results in the partial test show that variables CAR, ROE, and ZIS fund to net profit ratio for the result have an impact on the financial performance. While variables FDR, ROA, NPM, BOPO, and Qardh fund to total assets ratio has no significant impact on financial performance of the Islamic banks. The result in simultaneous relation test show all independent variables namely FDR, ROA, ROE, NPM, BOPO, ZIS funds to net profit, and Qardh funds to total assets ratio have a significant impact on financial performance of the Islamic banks.
