Overview

Original Research

ANALYSIS OF THE INFLUENCE OF INTERNAL AND EXTERNAL FACTORS ON THE PROFIT GROWTH OF ISLAMIC BANKS IN INDONESIA

PUSPITA 1, ALVIEN NUR AMALIA 2, and DIKDIK SALEH SADIKIN 3.

Vol 18, No 11 ( 2023 )   |  DOI: 10.5281/zenodo.10158366   |   Author Affiliation: Islamic Banking and Finance Management Department, Indonesia Banking School, Jalan Kemang Raya No. 35, Jakarta Selatan 12730 1,2; Accounting Department, Indonesia Banking School, Jalan Kemang Raya No. 35, Jakarta Selatan 12730 3.   |   Licensing: CC 4.0   |   Pg no: 53-64   |   Published on: 01-11-2023

Abstract

This study aims to determine the influence of internal and external factors on the profit growth of banks and sharia business units for the period January 2014-July 2020 in Indonesia. Internal factors used are the growth of third party funds (DPK), financing and fee-based income. Meanwhile, external factors include changes in the BI-Rate and Inflation. The data used is secondary data, which is processed using SPSS software through multiple regression analysis. The results of data processing show, partially, only internal factors of financing growth and fee-based income have an influence on profit growth. However, if simultaneously examined, all internal and external factors affect the profit growth of banks and sharia business units for the period January 2014-July 2020 in Indonesia.

Keywords

Profit Growth, Third Party Funds, Financing Growth, Fee Based Income, BI-Rate Changes, Inflation Changes.