DETERMINANTS OF PROFITABILITY LEVEL OF BANK SYARIAH IN INDONESIA: A CASE STUDY AT PT. BANK SYARIAH MANDIRI

The purpose of this research study is to analyze the influence of the profitability level of Bank Syariah Mandiri. The independent variables used are the internal and the external factors that can affect the profitability level of Bank Syariah Mandiri. The internal factors include capital adequacy ratio (CAR), non-performing financing (NPF), Operational Income Operating Expense (Indonesian: biaya operasional terhadap pendapatan operasional or BOPO), and net operating margin (NOM). While the external factors are the BI rate and the gross domestic product (GDP). Profitability is measured in return on assets (ROA) as a dependent variable. The data used in this research study was obtained from the financial statements of Bank Syariah Mandiri in the quarter period of 2010-2017. The analytical method used in this research study is multiple regression analysis. The results showed that the CAR, NOM, and BI rates variables have a positive influence in the profitability level of Bank Syariah Mandiri. The NPF and Operational Income Operating Expense have a negative influence on the profitability level of Bank Syariah Mandiri