Determinants of Bank Profit Growth: A Study of PT. Bank NTB Syariah in 2019-2023

Sahirul Alim; Hendri Saleh; Windra Sopiana

doi:10.59535/xwy2yp58

Authors

Sahirul Alim Institut Agama Islam Nurul Hakim Kediri Lombok Barat, Indonesia Author
Hendri Saleh Institut Agama Islam Nurul Hakim Kediri Lombok Barat, Indonesia Author
Windra Sopiana Institut Agama Islam Nurul Hakim Kediri Lombok Barat, Indonesia Author

DOI:

https://doi.org/10.59535/xwy2yp58

Keywords:

Determinants, Profit, Bank

Abstract

The growth of company profits, including PT. Bank NTB Syariah is determined by many factors. Return On Asset, (ROA), Return On Equity (ROE) and Debt to Equity Ratio (DER) are predictor factors for the profits generated. This study aims to analyze the factors, namely Return On Asset, Return On Equity, Debt to Equity Ratio, both partially and simultaneously, on profit growth. The statistical test used is Multiple Linear Regression. The population in the study is the financial statements of PT Bank NTB Syariah in 2019-2023, totaling 60 financial statements.

The results of the study indicate that partially Return On Asset has an effect on profit growth, the calculated t value is > from the t table value or 2.382 > 2.00324 or sig (0.032 < 0.05). Furthermore, Return On Equity has an effect on profit growth, this is evidenced by the calculated t value > from the t table value or 2.365 > 2.00324 or sig (0.029 < 0.05). While Debt to Equity Ratio does not affect profit growth with the calculated t value < from the t table value or 0.702 < 2.00324 or sig (0.486 > 0.05). The conclusion of this study is that simultaneously Return On Asset, Return On Equity, Debt to Equity Ratio have an effect on profit growth. Simultaneous test with three predictors, namely ROA, ROE and DER on Profit Growth shows that the value of F-calculation (3.496) > Ftable (2.77) and sig value 0.015 < 0.05 means that simultaneously Return On Asset (ROA),

References

[1] Z. Zulkifli, A. A. Purwati, N. Renaldo, Z. Hamzah, and M. L. Hamzah, “Employee performance of Sharia Bank in Indonesia : The mediation of organizational innovation and knowledge sharing,” Cogent Business & Management, vol. 10, no. 3, p. 2273609, Dec. 2023, doi: 10.1080/23311975.2023.2273609.

[2] A. N. I. Pratama, “Analysis of Disclosure of Nonhalal Income Receipts on The Financial Statements of Islamic Commercial Banks and Its Conformity with PSAK 101,” InVacation: International Vocational Conference of Accounting Innovation, vol. 1, no. 1, Art. no. 1, Nov. 2023.

[3] G. George, M. R. Haas, A. M. McGahan, S. J. D. Schillebeeckx, and P. Tracey, “Purpose in the For-Profit Firm: A Review and Framework for Management Research,” Journal of Management, vol. 49, no. 6, pp. 1841–1869, Jul. 2023, doi: 10.1177/01492063211006450.

[4] S. Ren, “Optimization of Enterprise Financial Management and Decision-Making Systems Based on Big Data,” Journal of Mathematics, vol. 2022, no. 1, p. 1708506, 2022, doi: 10.1155/2022/1708506.

[5] D. A. K. Panigrahi and K. Vachhani, “Financial Analysis by Return on Equity (ROE) and Return on Asset (ROA) - A Comparative Study of HUL and ITC,” Oct. 11, 2021, Social Science Research Network, Rochester, NY: 3940100. Accessed: Jul. 07, 2025. [Online]. Available: https://papers.ssrn.com/abstract=3940100

[6] E. Yanto, I. Christy, and P. A. Cakranegara, “The Influences of Return on Asset, Return on Equity, Net Profit Margin, Debt Equity Ratio and Current Ratio Toward Stock Price,” International Journal of Science, Technology & Management, vol. 2, no. 1, Art. no. 1, Jan. 2021, doi: 10.46729/ijstm.v2i1.155.

[7] A. Belhadi, S. S. Kamble, V. Mani, I. Benkhati, and F. E. Touriki, “An ensemble machine learning approach for forecasting credit risk of agricultural SMEs’ investments in agriculture 4.0 through supply chain finance,” Ann Oper Res, vol. 345, no. 2, pp. 779–807, Feb. 2025, doi: 10.1007/s10479-021-04366-9.

[8] P. Berrone, H. E. Rousseau, J. e. Ricart, E. Brito, and A. Giuliodori, “How can research contribute to the implementation of sustainable development goals? An interpretive review of SDG literature in management,” International Journal of Management Reviews, vol. 25, no. 2, pp. 318–339, 2023, doi: 10.1111/ijmr.12331.

[9] M. K. Illahi, F. Firdaus, and I. Fakhruddin, “Islamic Banking Performance Based on Profitability Approach of Indonesia Malaysia Islamic Banks,” Talaa : Journal of Islamic Finance, vol. 3, no. 2, pp. 90–103, Dec. 2023, doi: 10.54045/talaa.v3i2.736.

[10] D. Kusz, I. Bąk, B. Szczecińska, L. Wicki, and B. Kusz, “Determinants of Return-on-Equity (ROE) of Biogas Plants Operating in Poland,” Energies, vol. 16, no. 1, Art. no. 1, Jan. 2023, doi: 10.3390/en16010031.

[11] N. Kim Quoc Trung, “Does leverage fit non-performing loans in the COVID-19 pandemic – evidence from the Vietnamese banking system,” Cogent Business & Management, vol. 9, no. 1, p. 2119675, Dec. 2022, doi: 10.1080/23311975.2022.2119675.

[12] Y. Soesetio, “Good Corporate Governance Mechanisms and Financial Performance in Controlling Financial Distress,” ADPEBI International Journal of Business and Social Science, vol. 3, no. 1, Art. no. 1, Apr. 2023, doi: 10.54099/aijbs.v3i1.542.

[13] D. Gajdosikova, G. Lăzăroiu, and K. Valaskova, “How Particular Firm-Specific Features Influence Corporate Debt Level: A Case Study of Slovak Enterprises,” Axioms, vol. 12, no. 2, Art. no. 2, Feb. 2023, doi: 10.3390/axioms12020183.

[14] R. Sukmadewi, “Analysis of the Effect of Current Ratio, Working Capital, Debt Ratio on the Performance of Various Industrial Companies Listed on the IDX,” Husnayain Business Review, vol. 2, no. 1, Art. no. 1, May 2022, doi: 10.54099/hbr.v1i1.25.

[15] T. N. Bui, X. H. Nguyen, and K. T. Pham, “The Effect of Capital Structure on Firm Value: A Study of Companies Listed on the Vietnamese Stock Market,” International Journal of Financial Studies, vol. 11, no. 3, Art. no. 3, Sep. 2023, doi: 10.3390/ijfs11030100.

[16] Y. N. Isayas, “Determinants of banks’ profitability: Empirical evidence from banks in Ethiopia,” Cogent Economics & Finance, vol. 10, no. 1, p. 2031433, Dec. 2022, doi: 10.1080/23322039.2022.2031433.

[17] A. F. Alamah, Y. Nadhirah, and P. Putra, “The Impact of Islamicity Performance Index on the Profitability of Sharia Banks in Indonesia,” Research of Islamic Economics, vol. 2, no. 2, Art. no. 2, Jan. 2025, doi: 10.58777/rie.v2i2.381.

[18] Z. Hasan, “Analysis of Factors Affecting Community Interest in Bengkalis Regency Riau Province Indonesia in Using Sharia Banking,” European Journal of Islamic Finance, no. 19, Art. no. 19, Dec. 2021, doi: 10.13135/2421-2172/6108.

[19] S. Winarsih, M. Yafiz, and T. Anggraini, “The Effect of BOPO, CAR and NPF on the Profit Sharing Rate of Mudharabah Deposits in Sharia Commercial Banks,” Journal La Sociale, vol. 5, no. 6, Art. no. 6, Aug. 2024, doi: 10.37899/journal-la-sociale.v5i6.1392.

[20] E. A. Bennett and J. Grabs, “How can sustainable business models distribute value more equitably in global value chains? Introducing ‘value chain profit sharing’ as an emerging alternative to fair trade, direct trade, or solidarity trade,” Business Ethics, the Environment & Responsibility, vol. 34, no. 2, pp. 581–601, 2025, doi: 10.1111/beer.12666.