FACTORS AFFECTING FINANCIAL PERFORMANCE OF ISLAMIC BANKS LISTED IN BANK INDONESIA
FACTORS AFFECTING FINANCIAL PERFORMANCE OF
ISLAMIC BANKS LISTED IN BANK INDONESIA
By:
Dyah Nirmala Arum Janie1
Ardiani Ika Sulistyawati2
Hasnul Amiruddin3
ABSTRACT
Islamic Banking in Indonesia is still in infancy. Thus, there is still wide opened area that
needs to be empirically tested. This research was purposed to empirically examine and
analyze the influence of Capital Structure, Productive Asset Quality, Liquidity, Cost
Efficiency and Equity Profitability on Islamic Banks’ Financial Performance of Listed in
Bank Indonesia. The samples used in this research are three Islamic banks listed in Bank
Indonesia (Bank Syariah Mandiri, Bank Muamalat Indonesia and Bank Mega Syariah
Indonesia). Purposive sampling method and multiple regression analysis were used. The
results of this research show that the independent variables simultaneously have a
significant impact on dependent variables. Partially variables of CAR and BOPO have no
significant effect on the financial performance, and Variables of NPL, ROE and LDR
have significant impact on financial performance.
Keywords: Financial Performance, Islamic Banks, Indonesia
1. INTRODUCTION
Financial institutions possess a very strategic role for national economic activity,
namely as a vehicle that is able to collect and distribute public funds effectively and
efficiently toward the improvement of people’s living standard. In addition, financial
intermediary institutions/financial intermediaries as a vital supporting infrastructure to
support the economy (Indrawaty, 2008).
However, instability of financial performance of Islamic banks can be seen from
the development (ROA) from the years 2007-2009. Here is the growth of Islamic banking
financial ratios according to Sharia Banking Statistic Data, CAR in 2007 was 2.07
percent and in 2008 experiences a decrease amounted to 1.42 percent, and in 2009 rising
to 1.48 percent.
Table 1 – Sharia Banks Financial Ratios
1
Lecturers, Semarang University, Corresponding author: dyahjanie@gmail.com
Lecturers, Semarang University
3
Graduates, Semarang University
2
The measurements above were using performance assessment instruments in
conventional banks which already exist. The unavailability of specific instrument to
assess the performance of Islamic banking raises a question, whether such instruments
are significantly able to measure the performance of Islamic banking that is basically
different from conventional banking services which have been exist longer before
(Setyowati & Suciningtyas, 2010).
2. LITERATURE REVIEW
One factor that must be considered in the management of the bank is the
measurement of bank performance using financial statement analysis. Size is often used
in analyzing the financial performance of banks is the ratio of the bank’s financial
statements. From this ratio can be concluded that bank performance is presented in the
form of numbers that can be analyzed, and results of ratio analysis that will be utilized as
sources of information and guidance on working procedures by the bank and utilized as
the basis for decision making by other interested parties (Setyowati & Suciningtyas,
2010).
The previous results studies (Zainuddin & Jogiyanto, 1999; Abidin & Cabanda,
2006; Prasetyo W. , 2007) of variable CAR, demonstrate that it significantly influences
financial performance, however other several previous research (Budihantho, 2001;
Mawardi, 2004; Rindawati, 2007; Indrawaty, 2008) also indicate that CAR does not
significantly affect the financial performance.
H1=
It is suspected that Islamic banking capital structure (CAR) influence Islamic
banking financial performance (ROA).
The results of previous studies on variable NPL that have been conducted by
Zainuddin (1999), Abidin & Cabanda (2006), Wahyu Prasetyo (2007) Erna Rindawati
(2007), and Heni Endrawati (2008), suggests that the variable has a significant effect on
the financial performance, conversely the results from Budihanto (2001) and Wisnu
Mawadi (2004), suggest that the NPL has no significant influence on the financial
performance.
H2=
It is suspected that Islamic banking productive asset quality (NPL) influences
Islamic banking financial performance (ROA).
Results of previous studies (Zainuddin & Jogiyanto, 1999; Budihantho, 2001;
Prayudo, 2003; Abidin & Cabanda, 2006) on ROE notes that there is a significant effect
of rentability on financial performance, yet other research (Rindawati, 2007; Indrawaty,
2008), suggests that ROE does not significantly influence financial performance.
H3 = It is suspected that Islamic banking rentability variable (ROE) influences
Islamic banking financial performance (ROA).
The results of previous studies on BOPO variable that have been performed by
Prayudo (2003) and Prasetyo W. (2007), reveal a significant effect that BOPO variable
has on the financial performance, but nevertheless research conducted by Mawardi
(2004), Rindawati (2007), Indrawaty (2008) prove that the variable does not significantly
influence financial performance.
H3 = It is suspected that Islamic banking cost efficiency (BOPO) influences Islamic
banking financial performance (ROA).
Studies that have been conducted previously (Zainuddin & Jogiyanto, 1999;
Budihantho, 2001; Prayudo, 2003; Abidin & Cabanda, 2006; Rindawati, 2007;
Indrawaty, 2008), on LDR variables, shows that the variable BOPO significant impact on
financial performance, still there was also a research (Prasetyo W. , 2007) resulting that
the LDR variable is not significant to the financial performance.
H5= It is suspected that Islamic banking LDR influences Islamic banking financial
performance (ROA)
Based on the description of the background of these problems, the issues that
were analyzed can be formulated as follow: How variables of Capital Structure,
Productive Assets Quality, Liquidity, Cost Efficiency, Rentability/Profitability affect the
financial performance of Islamic Banks listed in Bank Indonesia both partially and
simultaneously.
The objective of this study is to empirically examine the influence of these
variables Capital Structure, Assets Quality, Liquidity, Cost Efficiency, Equity and
Profitability (Rentability), either partially or simultaneously on the financial performance
of Islamic Banks listed in Bank Indonesia.
3. RESEARCH METHOD
The population used in this study was all commercial Islamic banks operating and
has its headquarters in Indonesia and listed in the Bank Indonesia. There were 11 Islamic
banks listed in the Bank Indonesia.
The sampling technique carried out by selecting a sample aimed (purposive
sampling) by the method of selecting a sample based on the consideration (judgmental
sampling) the sampling is based on certain considerations (Indriantoro & Supomo, 2002).
Using a purposive sampling method, then in this study population of 11 the number of
members there were three Islamic banks available data and were eligible to be sampled.
In accordance with the purposive sampling where practicality factors as primary
considerations (speed and low cost) then three banks were taken of all Islamic banks to
serve as a sample.
Based on the criteria of availability of financial statements over a period of three
years in succession, namely: 2007, 2008 and 2009, there are three banks that are eligible
to serve as the study sample, namely: Bank Muamalat Indonesia, Bank Syariah Mandiri,
Bank Syariah Mega Indonesia. Bank BRI Syariah and Bank Syariah Bukopin were not
available because they started to operate in October 2008. Meanwhile, Panin Bank
Syariah, Bank Syariah Victoria, BCA Bank Syariah, Bank BNI Syariah, Bank Jabar
Banten Sharia and Sharia Maybank started to operate in 2010.
The data in this study is the data sourced from the Quarterly Financial Statements
of Commercial Sharia Banks at Bank Indonesia. The data obtained was taken through the
website
of
Bank
Indonesia
(http://www.bi.go.id),
Bank
Syariah
Mandiri
(http://www.syariahmandiri.co.id), Bank Mega Syariah (http://www.megasyariah.co.id),
Bank Muamalat (http://www.bankmuamalat.co.id), and the library at the office of Bank
Indonesia in Semarang.
The data obtained was further analyzed using multiple linear regression to
determine the effect of independent variables on the dependent variable, with the aid of
statistical data processing program that is Statistical Package For Social Science (SPSS).
To distinguish the capabilities of independent variables in explaining the dependent
variables were analyzed from the coefficient of determination (Adjusted R 2). Analytical
model used is:
Where:
Before testing the hypothesis, first performed testing to determine whether the
classical assumptions of regression models meet the criteria BLUE (Best Linear
Unbiased Estimator) so it fits to predict the effect of independent variables on the
dependent variable, which include multicollinearity, normality, and autocorrelation,
heteroscedasticity (Prasetyo W. , 2007).
4. RESULTS
The classical assumptions test results shows that the regression model meet the
criteria BLUE. (See Table 2, Table 3 and Figure 1):
Table 2 – Classical Assumptions Test Results
Figure 1 - Heteroscedasticity
Table 3 – Multicollinearity Table
From the results of the regression coefficients obtained data processing as shown
in the table above, so the regression equation can be arranged as follows:
Table 4 – Regression Coefficients
Based on the table above, the regression coefficient of Islamic banks can be
explained as follows:
The data processing results show that CAR has a coefficient of 0.109 with a
probability of 34.4 percent error rate. It is greater than the significance level of 5 percent.
Thus, variable CAR is partially and positively related to but insignificantly influences the
financial performance of Islamic banks.
The data processing results demonstrate that the NPL has a coefficient of -0.431
with a probability of 0 percent error rate. It is smaller than the significance level of 5
percent. Therefore, Ho2 is rejected. It indicates that variable NPL is partially and
negatively related to and significantly influences the financial performance of Islamic
banks.
The data processing results prove that the variable ROE has a coefficient of 0.427
with a probability of 0.04 percent error rate. It is smaller than the significance level of 5
percent. Consequently, the Ho3 is rejected. It implies that the variable ROE is partially
and positively related to and significantly affects the financial performance of Islamic
banks.
The data processing results confirm that variable has a coefficient of -0.293 with a
probability of 6.8 percent error rate. It is greater than the significance level of 5 percent.
Hence, Ho4 is rejected. It suggests that the variable BOPO is partially and negatively
related to but insignificantly influences the financial performance of Islamic banks.
The data processing results exemplify that the LDR has a coefficient of 0.363
with a probability of 0.01 percent error rate. It is smaller than the significance level of 5
percent. As a result, the Ho5 is rejected. It denotes that variable LDR partially and
positively related to and significantly affect the financial performance of Islamic banks.
From the data processing results can be concluded that the independent variables
(CAR, NPL, ROE, BOPO and LDR) hold a significance of F-value for 29.473 with a
probability of 0.000. The probability is smaller than the 0.05 level. Accordingly, it means
that the independent variables altogether (simultaneously) maintain a significant
influence on the financial performance of Islamic banks.
The determination coefficient (Adjusted R2) value is 0.803. It indicates that 80.3
percent of Islamic banks financial performance (ROA) is affected by the variable CAR,
NPL, ROE, BOPO and LDR. While as much as 19.7 percent of other factors are not
discussed here.
The data processing results show that partially variable CAR has no significant
effect on the financial performance of Islamic banks. It is inconsistent with research
conducted by Prasetyo W.
(2007) that the variable CAR significantly influences
financial performance. Yet it is coherent with research conducted by Mawardi (2004)
with the result that CAR insignificantly affects on ROA. It is consistent with research
conducted by Indrawaty (2008) indicating that the CAR does not have a significant
influence on financial performance.
The data processing results show that the variable NPL significantly affects ROA.
This is consistent with study conducted by Prasetyo W. (2007) that NPL variable
significantly influences the financial performance of banks. It is also consistent with
investigation conducted by Mawardi (2004) that the NPL partially and negatively affect
financial performance (ROA). Yet it is inconsistent with the study conducted by
Indrawaty (2008) which results that the NPL does not have a significant effect on
financial performance.
The data processing results confirm that the variable ROE significantly affects the
financial performance of Islamic banks (ROA). This is consistent with the research
conducted by Indrawaty (2008) that variable ROE have a significant impact on financial
performance.
The data processing results show that the BOPO variable insignificantly effects
the financial performance of Islamic banks (ROA). It is not in accordance with research
conducted by Prasetyo W. (2007) where the BOPO variable has a significant influence on
financial performance.
The data processing results that the LDR variable has a significant influence on
the financial performance of Islamic banks (ROA). It is not in accordance with research
conducted by Prasetyo W.
(2007) that variable LDR insignificantly influences the
financial performance of Islamic banking.
5. CONCLUSION
Based on the results of the analysis it can be concluded as follows:
Partially Islamic banking financial performance articulated in financial ratios of
the variable CAR, NPL, ROE, BOPO and LDR. After conducting examination, it is
discovered that CAR and BOPO variables do not have significant influence on financial
performance, while the NPL, ROE and LDR variables have significant influence on
Islamic Banking financial performance.
Simultaneously the financial performance of Islamic banks set forth in the
financial ratios of the variable CAR, NPL, ROE, BOPO and LDR have a significant
effect on the financial performance of Islamic banks, so the instrument can also be used
to assess the performance of Islamic banks.
The coefficient of determination (Adjusted R2) was obtained 0.803 means that
80.3 percent of Islamic bank financial performance (ROA) is affected by the variables of
CAR, NPL, ROE, BOPO and LDR. While the other remaining factors as much as 19.7
percent is not examined in this study.
This research is expected to benefit several parties. Researchers, it is expected to
increase valuable knowledge of practitioners associated with theoretical knowledge and
to gain experience and new knowledge about Islamic banking. For Islamic banking
business, the result of this study is expected to be able to be used as a guide for decisionmaking in determining the policy and as notes or corrections to maintain and improve its
performance if there are shortcomings and weaknesses. As for academic purpose, it is
expected to be used as a reference for the continuation of research in the future.
The limitation in this study is of there are only a few Islamic banks in Indonesia
that has sufficient financial statements for research purpose as this field is still relatively
new.
So, the further research can be conducted by extending the study sample, adding
the period of research data, as well as the depth of this analysis, using a longer
observation period, including aspects of management as one component of CAMEL,
adding such Islamic companies or banks, i.e. Islamic Business Units, Islamic Rural
Banks, making it possible result of better financial performance.
REFERENCES
Abidin, & Cabanda. (2006). Kinerja Keuangan dan Produksi Bank Asing dan Bank
Swasta Nasional Sebelum dan Sesudah Krisis. Manajemen Usahawan Indonesia ,
6, 3-9.
Abustan. (2009). Analisis Perbandingan Kinerja Keuangan Perbankan Syariah dengan
Perbankan Konvensional. Universitas Gunadharma, Fakultas Ekonomi. Jakarta:
Unpublished.
Budihantho, M. H. (2001). Analisis Kinerja Bank Perkreditan Rakyat Syariah di Jawa
Timur. Universitas Brawijaya, Program Magister Manajemen . Malang:
Unpublished.
Indrawaty, H. (2008). Analisis Faktor-faktor yang Mempengaruhi Kinerja Keuangan
BMT: Studi Pada BMT Sarana Wiraswasta Muslim Kota Malang. Jurnal
Akuntansi , XII (02).
Mawardi, W. (2004). Analisis Faktor yang Mempengaruhi Kinerja Keuangan Bank
Umum di Indonesia. Semarang: Universitas Diponegoro.
Prasetyo, I. (2008). Analisis Kinerja Keuangan Bank Syariah dan Bank Konvensional di
Indonesia. Jurnal Aplikasi Manajemen , 6 (2).
Prasetyo, W. (2007). Pengaruh Rasio Camel terhadap Kinerja Keuangan pada Bank.
Semarang: Universitas Diponegoro.
Prayudo, Y. A. (2003). Analisis Pengaruh Variabel CAMEL terhadap Laba Usaha pada
Bank Umum Swasta Nasional (Tbk). Program Magister Manajemen, Universitas
Malang. Malang: Unpublished.
Rindawati, E. (2007). Analisis Perbandingan Kinerja Keuangan Perbankan Syariah
dengan Perbankan Konvensional. Yogyakarta: Universitas Islam Indonesia.
Setyowati, & Suciningtyas. (2010). Perbandingan Kinerja Perbankan Syariah dengN
Perbankan Konvensional Pasca Fatwa MUI Tahun 2004. Sultan Agung , XLVII
(121).
Zainuddin, & Jogiyanto. (1999). Manfaat Rasio Keuangan dalam Memprediksi
Pertumbuhan Laba: Studi Empiris pada Perusahaan Perbankan yang Terdaftar di
BEJ. Jurnal Riset Akuntansi Indonesia , 2 (1).
APPENDIX
Table 1 – Sharia Banks Financial Ratios
Ratios
2007
2008
2009
CAR
10,67% 12,81% 10,77%
ROA
2,07% 1,42%
1,48%
ROE
40,38% 38,79% 26,09%
NPF / NPL 4,05% 1,42%
4,01%
FDR / LDR 99,76% 103,65% 89,70%
BOPO
76,54% 81,75% 84,39%
Source: BI Sharia Banking Directory
Table 2 – Classical Assumptions Test Results
No
1
2
3
4
Test
Autocorrelation
Heteroscedasticity
Multicollinearity
Normality
Indicator
DW= 2,150
See Figure 1
See Table 3
K-S Zscore = O,725
Conclusion
Undetected positive and negative autocorrelation
Undetected heteroscedasticity
Undetected multicollinearity
Normally distributed residuals
Source: SPSS Output
Figure 1 - Heteroscedasticity
Source: SPSS Output
Table 3 – Multicollinearity Table
Dependent
Variables
CAR
NPL
ROE
BOPO
LDR
VIF
2,292
1,488
3,378
4,239
1,906
Conclusion
VIF < 10 Undetected Multicollinearity
VIF < 10 Undetected Multicollinearity
VIF < 10 Undetected Multicollinearity
VIF < 10 Undetected Multicollinearity
VIF < 10 Undetected Multicollinearity
Source: SPSS Output
Table 4 – Regression Coefficients
Unstandardized Standardized
Coefficients Coefficients
Model
B Std. Error
1 (Constant) -.548
Beta
4.171
t
Sig.
-.131 .896
CAR
.069
.072
.109
.962 .344
NPL
-.298
.063
-.431
-4.704 .000
ROE
.034
.011
.427
3.094 .004
BOPO
-.052
.028
-.293
-1.894 .068
LDR
.066
.019
Dependent Variable: ROA
.363
3.498 .001
Source: SPSS Output
ISLAMIC BANKS LISTED IN BANK INDONESIA
By:
Dyah Nirmala Arum Janie1
Ardiani Ika Sulistyawati2
Hasnul Amiruddin3
ABSTRACT
Islamic Banking in Indonesia is still in infancy. Thus, there is still wide opened area that
needs to be empirically tested. This research was purposed to empirically examine and
analyze the influence of Capital Structure, Productive Asset Quality, Liquidity, Cost
Efficiency and Equity Profitability on Islamic Banks’ Financial Performance of Listed in
Bank Indonesia. The samples used in this research are three Islamic banks listed in Bank
Indonesia (Bank Syariah Mandiri, Bank Muamalat Indonesia and Bank Mega Syariah
Indonesia). Purposive sampling method and multiple regression analysis were used. The
results of this research show that the independent variables simultaneously have a
significant impact on dependent variables. Partially variables of CAR and BOPO have no
significant effect on the financial performance, and Variables of NPL, ROE and LDR
have significant impact on financial performance.
Keywords: Financial Performance, Islamic Banks, Indonesia
1. INTRODUCTION
Financial institutions possess a very strategic role for national economic activity,
namely as a vehicle that is able to collect and distribute public funds effectively and
efficiently toward the improvement of people’s living standard. In addition, financial
intermediary institutions/financial intermediaries as a vital supporting infrastructure to
support the economy (Indrawaty, 2008).
However, instability of financial performance of Islamic banks can be seen from
the development (ROA) from the years 2007-2009. Here is the growth of Islamic banking
financial ratios according to Sharia Banking Statistic Data, CAR in 2007 was 2.07
percent and in 2008 experiences a decrease amounted to 1.42 percent, and in 2009 rising
to 1.48 percent.
Table 1 – Sharia Banks Financial Ratios
1
Lecturers, Semarang University, Corresponding author: dyahjanie@gmail.com
Lecturers, Semarang University
3
Graduates, Semarang University
2
The measurements above were using performance assessment instruments in
conventional banks which already exist. The unavailability of specific instrument to
assess the performance of Islamic banking raises a question, whether such instruments
are significantly able to measure the performance of Islamic banking that is basically
different from conventional banking services which have been exist longer before
(Setyowati & Suciningtyas, 2010).
2. LITERATURE REVIEW
One factor that must be considered in the management of the bank is the
measurement of bank performance using financial statement analysis. Size is often used
in analyzing the financial performance of banks is the ratio of the bank’s financial
statements. From this ratio can be concluded that bank performance is presented in the
form of numbers that can be analyzed, and results of ratio analysis that will be utilized as
sources of information and guidance on working procedures by the bank and utilized as
the basis for decision making by other interested parties (Setyowati & Suciningtyas,
2010).
The previous results studies (Zainuddin & Jogiyanto, 1999; Abidin & Cabanda,
2006; Prasetyo W. , 2007) of variable CAR, demonstrate that it significantly influences
financial performance, however other several previous research (Budihantho, 2001;
Mawardi, 2004; Rindawati, 2007; Indrawaty, 2008) also indicate that CAR does not
significantly affect the financial performance.
H1=
It is suspected that Islamic banking capital structure (CAR) influence Islamic
banking financial performance (ROA).
The results of previous studies on variable NPL that have been conducted by
Zainuddin (1999), Abidin & Cabanda (2006), Wahyu Prasetyo (2007) Erna Rindawati
(2007), and Heni Endrawati (2008), suggests that the variable has a significant effect on
the financial performance, conversely the results from Budihanto (2001) and Wisnu
Mawadi (2004), suggest that the NPL has no significant influence on the financial
performance.
H2=
It is suspected that Islamic banking productive asset quality (NPL) influences
Islamic banking financial performance (ROA).
Results of previous studies (Zainuddin & Jogiyanto, 1999; Budihantho, 2001;
Prayudo, 2003; Abidin & Cabanda, 2006) on ROE notes that there is a significant effect
of rentability on financial performance, yet other research (Rindawati, 2007; Indrawaty,
2008), suggests that ROE does not significantly influence financial performance.
H3 = It is suspected that Islamic banking rentability variable (ROE) influences
Islamic banking financial performance (ROA).
The results of previous studies on BOPO variable that have been performed by
Prayudo (2003) and Prasetyo W. (2007), reveal a significant effect that BOPO variable
has on the financial performance, but nevertheless research conducted by Mawardi
(2004), Rindawati (2007), Indrawaty (2008) prove that the variable does not significantly
influence financial performance.
H3 = It is suspected that Islamic banking cost efficiency (BOPO) influences Islamic
banking financial performance (ROA).
Studies that have been conducted previously (Zainuddin & Jogiyanto, 1999;
Budihantho, 2001; Prayudo, 2003; Abidin & Cabanda, 2006; Rindawati, 2007;
Indrawaty, 2008), on LDR variables, shows that the variable BOPO significant impact on
financial performance, still there was also a research (Prasetyo W. , 2007) resulting that
the LDR variable is not significant to the financial performance.
H5= It is suspected that Islamic banking LDR influences Islamic banking financial
performance (ROA)
Based on the description of the background of these problems, the issues that
were analyzed can be formulated as follow: How variables of Capital Structure,
Productive Assets Quality, Liquidity, Cost Efficiency, Rentability/Profitability affect the
financial performance of Islamic Banks listed in Bank Indonesia both partially and
simultaneously.
The objective of this study is to empirically examine the influence of these
variables Capital Structure, Assets Quality, Liquidity, Cost Efficiency, Equity and
Profitability (Rentability), either partially or simultaneously on the financial performance
of Islamic Banks listed in Bank Indonesia.
3. RESEARCH METHOD
The population used in this study was all commercial Islamic banks operating and
has its headquarters in Indonesia and listed in the Bank Indonesia. There were 11 Islamic
banks listed in the Bank Indonesia.
The sampling technique carried out by selecting a sample aimed (purposive
sampling) by the method of selecting a sample based on the consideration (judgmental
sampling) the sampling is based on certain considerations (Indriantoro & Supomo, 2002).
Using a purposive sampling method, then in this study population of 11 the number of
members there were three Islamic banks available data and were eligible to be sampled.
In accordance with the purposive sampling where practicality factors as primary
considerations (speed and low cost) then three banks were taken of all Islamic banks to
serve as a sample.
Based on the criteria of availability of financial statements over a period of three
years in succession, namely: 2007, 2008 and 2009, there are three banks that are eligible
to serve as the study sample, namely: Bank Muamalat Indonesia, Bank Syariah Mandiri,
Bank Syariah Mega Indonesia. Bank BRI Syariah and Bank Syariah Bukopin were not
available because they started to operate in October 2008. Meanwhile, Panin Bank
Syariah, Bank Syariah Victoria, BCA Bank Syariah, Bank BNI Syariah, Bank Jabar
Banten Sharia and Sharia Maybank started to operate in 2010.
The data in this study is the data sourced from the Quarterly Financial Statements
of Commercial Sharia Banks at Bank Indonesia. The data obtained was taken through the
website
of
Bank
Indonesia
(http://www.bi.go.id),
Bank
Syariah
Mandiri
(http://www.syariahmandiri.co.id), Bank Mega Syariah (http://www.megasyariah.co.id),
Bank Muamalat (http://www.bankmuamalat.co.id), and the library at the office of Bank
Indonesia in Semarang.
The data obtained was further analyzed using multiple linear regression to
determine the effect of independent variables on the dependent variable, with the aid of
statistical data processing program that is Statistical Package For Social Science (SPSS).
To distinguish the capabilities of independent variables in explaining the dependent
variables were analyzed from the coefficient of determination (Adjusted R 2). Analytical
model used is:
Where:
Before testing the hypothesis, first performed testing to determine whether the
classical assumptions of regression models meet the criteria BLUE (Best Linear
Unbiased Estimator) so it fits to predict the effect of independent variables on the
dependent variable, which include multicollinearity, normality, and autocorrelation,
heteroscedasticity (Prasetyo W. , 2007).
4. RESULTS
The classical assumptions test results shows that the regression model meet the
criteria BLUE. (See Table 2, Table 3 and Figure 1):
Table 2 – Classical Assumptions Test Results
Figure 1 - Heteroscedasticity
Table 3 – Multicollinearity Table
From the results of the regression coefficients obtained data processing as shown
in the table above, so the regression equation can be arranged as follows:
Table 4 – Regression Coefficients
Based on the table above, the regression coefficient of Islamic banks can be
explained as follows:
The data processing results show that CAR has a coefficient of 0.109 with a
probability of 34.4 percent error rate. It is greater than the significance level of 5 percent.
Thus, variable CAR is partially and positively related to but insignificantly influences the
financial performance of Islamic banks.
The data processing results demonstrate that the NPL has a coefficient of -0.431
with a probability of 0 percent error rate. It is smaller than the significance level of 5
percent. Therefore, Ho2 is rejected. It indicates that variable NPL is partially and
negatively related to and significantly influences the financial performance of Islamic
banks.
The data processing results prove that the variable ROE has a coefficient of 0.427
with a probability of 0.04 percent error rate. It is smaller than the significance level of 5
percent. Consequently, the Ho3 is rejected. It implies that the variable ROE is partially
and positively related to and significantly affects the financial performance of Islamic
banks.
The data processing results confirm that variable has a coefficient of -0.293 with a
probability of 6.8 percent error rate. It is greater than the significance level of 5 percent.
Hence, Ho4 is rejected. It suggests that the variable BOPO is partially and negatively
related to but insignificantly influences the financial performance of Islamic banks.
The data processing results exemplify that the LDR has a coefficient of 0.363
with a probability of 0.01 percent error rate. It is smaller than the significance level of 5
percent. As a result, the Ho5 is rejected. It denotes that variable LDR partially and
positively related to and significantly affect the financial performance of Islamic banks.
From the data processing results can be concluded that the independent variables
(CAR, NPL, ROE, BOPO and LDR) hold a significance of F-value for 29.473 with a
probability of 0.000. The probability is smaller than the 0.05 level. Accordingly, it means
that the independent variables altogether (simultaneously) maintain a significant
influence on the financial performance of Islamic banks.
The determination coefficient (Adjusted R2) value is 0.803. It indicates that 80.3
percent of Islamic banks financial performance (ROA) is affected by the variable CAR,
NPL, ROE, BOPO and LDR. While as much as 19.7 percent of other factors are not
discussed here.
The data processing results show that partially variable CAR has no significant
effect on the financial performance of Islamic banks. It is inconsistent with research
conducted by Prasetyo W.
(2007) that the variable CAR significantly influences
financial performance. Yet it is coherent with research conducted by Mawardi (2004)
with the result that CAR insignificantly affects on ROA. It is consistent with research
conducted by Indrawaty (2008) indicating that the CAR does not have a significant
influence on financial performance.
The data processing results show that the variable NPL significantly affects ROA.
This is consistent with study conducted by Prasetyo W. (2007) that NPL variable
significantly influences the financial performance of banks. It is also consistent with
investigation conducted by Mawardi (2004) that the NPL partially and negatively affect
financial performance (ROA). Yet it is inconsistent with the study conducted by
Indrawaty (2008) which results that the NPL does not have a significant effect on
financial performance.
The data processing results confirm that the variable ROE significantly affects the
financial performance of Islamic banks (ROA). This is consistent with the research
conducted by Indrawaty (2008) that variable ROE have a significant impact on financial
performance.
The data processing results show that the BOPO variable insignificantly effects
the financial performance of Islamic banks (ROA). It is not in accordance with research
conducted by Prasetyo W. (2007) where the BOPO variable has a significant influence on
financial performance.
The data processing results that the LDR variable has a significant influence on
the financial performance of Islamic banks (ROA). It is not in accordance with research
conducted by Prasetyo W.
(2007) that variable LDR insignificantly influences the
financial performance of Islamic banking.
5. CONCLUSION
Based on the results of the analysis it can be concluded as follows:
Partially Islamic banking financial performance articulated in financial ratios of
the variable CAR, NPL, ROE, BOPO and LDR. After conducting examination, it is
discovered that CAR and BOPO variables do not have significant influence on financial
performance, while the NPL, ROE and LDR variables have significant influence on
Islamic Banking financial performance.
Simultaneously the financial performance of Islamic banks set forth in the
financial ratios of the variable CAR, NPL, ROE, BOPO and LDR have a significant
effect on the financial performance of Islamic banks, so the instrument can also be used
to assess the performance of Islamic banks.
The coefficient of determination (Adjusted R2) was obtained 0.803 means that
80.3 percent of Islamic bank financial performance (ROA) is affected by the variables of
CAR, NPL, ROE, BOPO and LDR. While the other remaining factors as much as 19.7
percent is not examined in this study.
This research is expected to benefit several parties. Researchers, it is expected to
increase valuable knowledge of practitioners associated with theoretical knowledge and
to gain experience and new knowledge about Islamic banking. For Islamic banking
business, the result of this study is expected to be able to be used as a guide for decisionmaking in determining the policy and as notes or corrections to maintain and improve its
performance if there are shortcomings and weaknesses. As for academic purpose, it is
expected to be used as a reference for the continuation of research in the future.
The limitation in this study is of there are only a few Islamic banks in Indonesia
that has sufficient financial statements for research purpose as this field is still relatively
new.
So, the further research can be conducted by extending the study sample, adding
the period of research data, as well as the depth of this analysis, using a longer
observation period, including aspects of management as one component of CAMEL,
adding such Islamic companies or banks, i.e. Islamic Business Units, Islamic Rural
Banks, making it possible result of better financial performance.
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Swasta Nasional Sebelum dan Sesudah Krisis. Manajemen Usahawan Indonesia ,
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APPENDIX
Table 1 – Sharia Banks Financial Ratios
Ratios
2007
2008
2009
CAR
10,67% 12,81% 10,77%
ROA
2,07% 1,42%
1,48%
ROE
40,38% 38,79% 26,09%
NPF / NPL 4,05% 1,42%
4,01%
FDR / LDR 99,76% 103,65% 89,70%
BOPO
76,54% 81,75% 84,39%
Source: BI Sharia Banking Directory
Table 2 – Classical Assumptions Test Results
No
1
2
3
4
Test
Autocorrelation
Heteroscedasticity
Multicollinearity
Normality
Indicator
DW= 2,150
See Figure 1
See Table 3
K-S Zscore = O,725
Conclusion
Undetected positive and negative autocorrelation
Undetected heteroscedasticity
Undetected multicollinearity
Normally distributed residuals
Source: SPSS Output
Figure 1 - Heteroscedasticity
Source: SPSS Output
Table 3 – Multicollinearity Table
Dependent
Variables
CAR
NPL
ROE
BOPO
LDR
VIF
2,292
1,488
3,378
4,239
1,906
Conclusion
VIF < 10 Undetected Multicollinearity
VIF < 10 Undetected Multicollinearity
VIF < 10 Undetected Multicollinearity
VIF < 10 Undetected Multicollinearity
VIF < 10 Undetected Multicollinearity
Source: SPSS Output
Table 4 – Regression Coefficients
Unstandardized Standardized
Coefficients Coefficients
Model
B Std. Error
1 (Constant) -.548
Beta
4.171
t
Sig.
-.131 .896
CAR
.069
.072
.109
.962 .344
NPL
-.298
.063
-.431
-4.704 .000
ROE
.034
.011
.427
3.094 .004
BOPO
-.052
.028
-.293
-1.894 .068
LDR
.066
.019
Dependent Variable: ROA
.363
3.498 .001
Source: SPSS Output