PERBANDINGAN PROFITABILITAS BANK SYARIAH DAN BANK KONVENSIONAL DENGAN KAJIAN TEORI RE-ENGINEERING ISLAMIC ECONOMIC

Abstract

This article presents a comparative analysis of profitability between Islamic banks and conventional banks with a focus on crucial financial aspects. Information was obtained through the process of collecting and evaluating financial data over the past few years. The study used key financial ratios, including Return on Assets (ROA), Return on Equity (ROE), and Net Profit Margin (NPM), to measure and compare the profitability performance of the two. The findings of the study illustrate a significant difference in profitability outcomes between Islamic banks and conventional banks. Several factors, such as: ownership structure, investment strategy, and risk management have different impacts on the performance of each institution. The importance of this understanding creates a basis for the development of better strategies in order to improve profitability performance, as well as contributing to the literature on Islamic and conventional banking.