Financial Impact of Islamic CSR and Income Ratio: A Study of Profitability in Islamic Banks

This study aims to determine the effect of Islamic Corporate Social Responsibility and Islamic Income Ratio on the Level of Profitability, and to determine the effect of Islamic Corporate Social Responsibility and Islamic Income Ratio on the Level of Profitability moderated by Zakat Performance Ratio.The sample was collected using purposive sampling method, so as to obtain data according to predetermined criteria.This study used a sample of 10 Islamic commercial banks with an observation period of 2019-2023, so that observation data was obtained as many as 50 companies.The research method uses verification research methods with a quantitative approach.To test the hypothesis proposed, researchers used multiple linear regression analysis with moderation and without moderation.The results showed that Islamic Corporate Social Responsibility and Islamic Income Ratio had a significant effect with a positive direction on the level of profitability.In addition, Zakat Performance Ratio is able to moderate the influence of Islamic Corporate Social Responsibility and Islamic Income Ratio on Profitability Level.For further research, it can use company reputation as an intermediary variable and use an index formula to complement the Islamic Performance Index measure as a measure of Islamic commercial bank performance.As complementary information, the company should disclose the Islamic Income Ratio and Zakat Performance Ratio in the annual report in the financial ratio section.