The Determinants of Inflation, Non-Performing Financing (NPF), Financing to Deposit Ratio (FDR), Size, and Age of Banks on the Profitability of Islamic Banks

This study aims to examine the effect of inflation, NPF, FDR, size, and age on the profitability of Islamic banks. The study was conducted on 12 Islamic commercial banks in Indonesia using unbalanced panel data regression analysis. Since one of the variables in this study is bank age, measured from the time a bank converted to Islamic banking until the year of study, the number of observation years differs across banks. The data were obtained from the financial reports of each bank for the period 2014–2023. The study employs the Random Effect Model (REM). The results indicate that NPF has a significant negative effect, bank size has a significant positive effect, while inflation, FDR, and age have no significant effect on the profitability of Islamic banks.