ANALYSIS OF FACTORS AFFECTING THE PROFITABILITY OF SYARIAH BUSINESS UNIT BANKS
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Abstract
The development of Sharia Business Units (SBUs) in Indonesia has shown positive growth; however, this growth has not been fully accompanied by stable profitability. Fluctuations in Return on Assets (ROA) indicate that several factors still influence the ability of SBUs to generate profits. This study aims to analyze the effects of Current Account Saving Account (CASA), Profit-Sharing Financing, Operating Expenses to Operating Income (BOPO), and Inflation on profitability as measured by Return on Assets (ROA) in Sharia Business Units in Indonesia during the period 2020–2025. This research uses Banking Theory, Financial Theory, Contract Theory, and Inflation Theory. This research employs a quantitative approach using panel data collected from 12 Sharia Business Units during 2020–2025. The data were analyzed using panel data regression with EViews 12. Based on model selection tests, the Random Effect Model (REM) was identified as the most appropriate model. The results indicate that CASA and Profit-Sharing Financing do not have a significant effect on profitability (ROA). In contrast, BOPO and inflation have a significant negative effect on profitability (ROA). Simultaneously, all independent variables significantly affect the profitability of Sharia Business Units. The implications of the research findings indicate that operational efficiency and macroeconomic conditions are more dominant factors affecting SBU profitability than low-cost fund collection and profit-sharing financing. Therefore, improving operational efficiency
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