Analysis of Return on Asset Improvement Influenced by Murabaha Financing Income and Mudarabah Profit-Sharing Income with Non-Performing Finance as an Intervening Variable in Indonesian Islamic Commercial Banks

Listed on the Indonesia Stock Exchange for the Period 2019-2023

Abstract

: This study is motivated by the growth of Islamic banking in Indonesia, which shows significant potential for enhancing financial performance, particularly Return on Asset (ROA). The aim of this research is to analyze the impact of income from murabahah financing and profit-sharing from Mudarabah on Non-Performing Finance (NPF) and ROA in Islamic commercial banks listed on the Indonesia Stock Exchange from 2019 to 2023. The population consists of 4 Islamic banks, with a saturation sampling method applied. The research employs a quantitative methodology using multiple regression analysis to examine the relationships among the variables. The findings indicate that both murabahah and mudharabah income have a significant positive effect on ROA, while NPF acts as an intervening variable that influences this relationship. The conclusion emphasizes that effective management of income from murabahah and mudharabah products can enhance the financial performance of Islamic banks. Recommendations for banking practitioners include focusing strategies on managing NPF to optimize ROA.