The impact of credit risk management on bank's financial performance: a case study of Maybank Islamic Berhad / Nur Syahira Mohamad Shari

This study attempts to investigate the impact of credit risk management on financial performance of Maybank Islamic Berhad. The sample used in this study are all been collected from the Maybank Islamic Berhad data only. The samples in this study are collected from financial reports of Maybank Islamic Berhad for the year 2011 until 2014 that is 31 months. Variable used for the analysis include net profit margin as the dependent variable (DV), whereas the default amount (DA), cost of fund (COF), and bad debt (BD) as the independent variables (IV). The data were analysed by using E-Views 8 to do regression analysis and Pearson Correlation analysis. The finding indicates that two variables are significant in explaining the net profit margin of Maybank Islamic Berhad which are Default Amount and Cost of Fund. While Bad debt is not significant. All three of the independent variables has a negative relationship to the dependent variables which is net profit margin of Maybank Islamic Berhad.