The Impact of Bank Size on the Profitability of Islamic Banks

Abstract

The purpose of this research is to investigate the impact of Islamic bank size on profitability and to understand the nature of their relationship. For the period 2012-2021, four profitability measures were used: return on assets (ROA), return on equity (ROE), return on deposits (ROD), and profit margin (PM). The data was analyzed using panel data models to find the link between the variables. The findings reveal that the scale of Islamic banks has a strong, favorable influence on all profitability measures, particularly ROA and ROE.