The determinants of Islamic Banking profitability in Malaysia / Aini Ruwaida Ahmad Nor Komar and Nur Izyan Mohd Aziz

This study conducted the determinants of the Islamic banking profitability in
Malaysia. 9 samples of Islamic banks with 8 years financial data will be chosen to
participate in this research. This study focuses on the 9 Islamic banks which are Bank
Islam Malaysia Berhad, Bank Muamalat Berhad, Affin Islamic Bank Berhad, CIMB
Islamic Bank, Maybank Islamic Bank, Kuwait Finance House, RHB Islamic Bank and
Al-Rajhi Bank also Hong Leong Islamic Bank. It is because these companies have
long been established and also active in the industry.
The purpose of this paper is to closely examine the most influence factors that affect
Islamic banking profitability. It is also to examine the relationship between the
variables. This will be seen on the variables which are asset quality, bank size,
financial risk and liquidity. Some tests have been run in order to get the result of the
relationship between the dependent variable and independent variable.
Therefore, the result shows that all the variables are insignificant but only one is
positively relationship affects Islamic bank profitability which is bank size.