The Impact of Covid-19 Pandemic on the Financial Performance of Islamic Banking in Indonesia
Mochammad Arif Budiman*- Salna Azzahrah- Andriani

Politeknik Negeri Banjarmasin
Jl. Brigjend. H. Hasan Basri Banjarmasin 70124

Abstract

The Covid-19 pandemic has had a serious impact on all economic sectors in Indonesia, including Islamic banking. The purpose of this study is to analyze the financial performance of Islamic banking in Indonesia due to the impact of the Covid-19 pandemic, by analyzing the financial statements using financial ratios, namely NPF (Non-Performing Financing), FDR (Financing to Deposit Ratio), CAR (Capital Adequacy Ratio), RoA (Return on Assets), and RoE (Return on Equity). This is a quantitative research using the comparative-analytical approach. The samples used were 5 Islamic commercial banks in Indonesia. The data analyzed were financial reports before the pandemic (quarter IV 2019 & quarter I 2020) and after the pandemic (quarter IV 2020 & quarter I 2021). Data then tested with a paired sample t-test using the SPSS version 26. The results showed that Covid-19 pandemic does not affect the financial performance of Islamic banking in Indonesia. This can be seen through the results of the paired sample t-test of the ratios of NPF, FDR, CAR, RoA, and RoE which overall do not show any significant difference in the financial performance of Islamic banking before and after the pandemic.

Keywords: Financial Performance- Islamic Banking- Covid-19 Pandemic- ROA- ROE

Topic: Business and Finance