Industrial training report: Benchmark Precision Technologies (PT). Special project: Determinants of profitability in the Islamic banking sector of Malaysia

The Industrial Training program, designated as MGT666, is a pivotal and integral element within the curriculum of the Faculty of Business Administration at Universiti Teknologi Mara (UiTM). This comprehensive training initiative serves as a cornerstone in bridging the gap between theoretical knowledge acquired in the academic setting and the practical skills demanded by the dynamic and evolving business landscape. The primary objective of the Industrial Training is to provide students with a real-world exposure to the intricacies of the business world, fostering a seamless transition from classroom learning to professional application. For me, I further my industrial training at Benchmark Precision Technologies (PT), Penang within 6 months. This company has been an industry leader in precision manufacturing since its establishment on 26 July 2007 at Industrial Zone Phase 1, Bayan Lepas, 11900, Penang. I gained more knowledge and experience in technologies and machining. This report investigates the determinants of profitability in the Islamic banking sector of Malaysia, focusing on the top seven firms from 2010 to 2022. Utilizing empirical data from Eikon with Datastream, the study aims to contribute valuable insights to both academic literature and industry practices. The findings indicate that all determinant variables in the model have statistically significant impacts on Malaysian Islamic banks' profitability, with loan growth identified as the most influential factor. Regression findings reveal that loan growth is the most significant company level determinant of banks’ profitability. Additionally, the study highlights the importance of operating income for profitability, despite some statistically insignificant effects. This research underscores the policy implications of efficiency ratio, fee revenue, operating income, operating leverage and deposit growth for the performance of Malaysian Islamic banking in a globally expanding Islamic finance landscape.