The Effect of Profit Sharing and Operating Costs on Operating Income (BOPO) on Profitability at Indonesian Sharia Banks in 2017-2024

Abstract

This study aims to evaluate the impact of profit sharing and Operating Costs Operating Income (BOPO) on profit at Bank Syariah Indonesia during the period 2017-2025. Profit is measured using Return on Assets (ROA) as a measure of the bank's financial performance. The approach used in this study is quantitative with a panel data method analyzed through multiple linear regression. The results of this study reveal that BOPO has a positive and significant effect on profitability, indicating that the higher the BOPO, the lower the operational efficiency which results in a decrease in bank profits. On the other hand, the profit sharing variable also shows a negative and significant effect on profitability, indicating that increasing profit sharing can reduce the bank's profit level.

In theory, income from profit sharing is one of the main components of Islamic bank income. In mudharabah and musyarakah contracts, the bank will get a share of the profits generated by customers based on the initial agreement. The greater the profit sharing received by the bank, the higher the profitability obtained. However, the results of this study found that the increase in the value of profit sharing was not directly proportional to the increase in profitability.

This finding confirms that the management of operational costs and the implementation of effective profit sharing strategies are very important to improve the financial performance of Bank Syariah Indonesia. The findings of this study can be used as a reference for bank management in improving operational efficiency and implementing profit sharing policies to increase profitability and these findings provide practical implications for bank management in managing profit sharing and better operating costs and operating income, as well as being a reference for developing Islamic banking in Indonesia.