THESIS PROPOSAL

THE EFFECT OF NON PERFORMING FINANCING, PROFIT SHARING

FINANCING AND SELLING FINANCING ON RETURN ON ASSETS IN PT. BANK
SYARIAH MANDIRI 2017 - 2019

Bayu Segarahin

NIM (362015420893)

DEPARTMENT OF MANAGEMENT

FACULTY OF ECONOMICS AND MANAGEMENT

UNIVERSITY OF DARUSSALAM GONTOR

2019
 ABSTRACT

This study aims to examine the effect of Non-Performing Financing (NPF) , Profit
Sharing Financing and Selling Financing on Return on Assets in PT. Bank Syariah Mandiri
for the period of 2017 - 2019 . The data used in this study were obtained from PT. Bank
Syariah Mandiri Monthly Financial Statement data for 2017 - 2019. The research method
used is quantitative descriptive method.

The analysis technique used in this research are descriptive statistics, correlation tests,
multiple linear regression which aims to determine the effect of the independent variables on
the dependent variable and the statistical test t partially carried out to test the effect of each
independent variable on return on assets (ROA).

Keywords: Non Performing Financing (NPF), Profit Sharing Financing,

Selling Financing, Return On Assets (ROA).

 CHAPTER I
INTRODUCTION

1.1. Background of Study

Sharia bank operational as financial intermediaries are carried out with funds from
the public which are then channeled back to the community through financing. The funds
are deposited in the form of demand deposits, savings and deposits, both on the wadiah
principle and the mudharabah principle. While the channeling of funds is carried out by
sharia banks through financing with four distribution patterns, the principle of buying and
selling, the principle of profit sharing, the principle of ujroh and the complementary
contract (Karim, 2008).
From the four patterns presented above, there are two main patterns currently
implemented by sharia banks in channeling financing. The pattern is financing with the
principle of buying and selling and financing with the principle of profit sharing. Income
at sharia banks is largely determined by how much profit is received from the financing
channeled. Profits received from the sale and purchase principle come from the mark up
determined based on the agreement between the bank and the customer. While revenues
from profit sharing principle determined on consensual magnitude ratio, bank profits
depend on the benefit of customers. The pattern of sharing contain lot of risk, therefore the
bank must actively try to anticipate the possibility of customer losses from the beginning
(Muhammad, 2005).
Funding channeled by sharia banks is very likely to contain risks in it, one of which
is non-performing finance. Problem financing is loans that have difficulty paying off due
to intentional factors or external factors out the ability / control of loaners (Siamat, 2005).
The size of non-performing financing shows the performance of a bank in managing the
funds channeled. If the portion of problematic financing grows, this will ultimately reduce
the amount of income the bank receives (Ali, 2004).
In 2014, the performance of Islamic banking increased from previous years, both
from total assets, financing disbursed and funds from third parties. Seeing the increasing
performance of Islamic banking it should also have a good impact on profitability. But in
reality, the phenomenon that occurs precisely the profit of Islamic banks dropped as of
April 2014 in the amount of Rp 1.03 trillion. That number shows a decrease of 24.26%
compared to April 2013. The net profit achieved by Islamic banks reached Rp 1.36 trillion
(Tribunnews.com, September 4, 2014).
 From fenomena above, researcher want to conduct further research and want to
provide more valid results on the effect of financing transactions, financing for the results,
and non-performing finance (NPF) on the return on assets (ROA) in the
bank syariah independently period 2016 - 2018 .

1.2. Statements of the Problem

Based on the description in the background of study described above, the
statements of the problem in this research are:
1. How does the effect of non-performing financing (NPF) on the return on assets
(ROA) of PT. Bank Syariah Mandiri?
2. How does the effect of profit sharing financing on return on assets (ROA) of PT.
Bank Syariah Mandiri?
3. How does the effect of selling financing on return on assets (ROA) of
PT. Bank Syariah Mandiri?
4. How does the effect of those three on return on assets (ROA) of PT. Bank Syariah
Mandiri?

1.3. Objectives of the Study

Departing from statements of the problem above, the objectives of this study
are:
1. Analyzing the effect of non-performing financing (NPF) on the return on assets
(ROA) PT. Bank Syariah Mandiri.
2. Analyzing the effect of profit sharing financing on return on assets (ROA) of
PT. Bank Syariah Mandiri.
3. Analyzing the effect of selling financing on return on assets (ROA) of
PT. Bank Syariah Mandiri.
4. Analyzing the effect of those three on return on assets (ROA) of PT. Bank Syariah
Mandiri.

1.4. Benefits of research

Some of the benefits that can be obtained from the results of this study are:
1. Can provide knowledge as empirical evidence in the field of banking.
2. Can support further studies in conducting research related to retun on assets (ROA)
in the company of sharia banking in Indonesia.
 CHAPTER II
LITERATURE REVIEW
2.1. Previous Research

RESEARCHER TITLE VARIABLES RESULTS

Ali Tau f iq Effect of Dependent: Independent ROA: The results of the
(2010) Murabahah Murabahah Financing study indicate that,
Financing murabaha financing
on has a low effect on
Profitabilit return on assets
y (ROA). (ROA). Means that
Murabahah
financing does not
significantly
influence ROA.
Muh. Sabir. M, Effect of Dependent: Independent ROA: CAR, NOM and
M.Ali and Bank BOPO, NOM, NPF, FDR, FDR ratios have a
Abd. Hamid Health NIM, NPL and LDR significant positive
Habbe (2012) Ratio on effect on ROA while
Financial NPF has no
Performanc significant effect on
e of ROA and BOPO has
Islamic a negative effect on
Commercia ROA at Islamic
l Commercial Banks
Banks and in Indonesia.
Convention
al Banks in
Indonesia
Yesi Oktariani Effects of Independent: Musyarakah, Financing musyarak
(2012) Musyaraka Mudharabah, and ah on profitability is
h, Murabahah Dependent Financi partially not
Mudharaba ng : Profitability proxied by influence significant
h, and ROA ly to the profitability
Murabahah of financing is
Financing partially no
on Profitab significant effect,
 ility (case and murabaha
study at PT financing on
Bank profitability is
Muamalat partially significant
Indonesia, effect, while
Tbk) musyarakah,
mudaraba and
murabaha to
profitability
simultaneously
significant effect.
Lyla Rahma Analysis of Dependent: Independent ROA: Results of
Adyani (2011) Factors CAR, NPF, BOPO, and FDR p e ne Litian
affecting simultaneously (test
Profitabilit F) states that the
y (studies CAR, NPF, ROA,
on Islamic and FDR
Commercia collectively same
l Banks effect on
listed on profitability (ROA)
the IDX for of the bank. And the
the period results of research
December partially (t test)
2005- states that the CAR
September and FDR variables
2010) do not have a
significant positive
effect on bank
profitability
(ROA). And the
NPF and BOPO
variables have a
significant negative
effect on bank
profitability (ROA).
 Dewi (2010) F factors Independent: ROA, CAR, FDR, Capital Adequacy
that affect NPF, and REO Dependent: Ratio (CAR) and
the ROA Financing to
profitabilit Deposit Ratio
y of (FDR) have no
Islamic significant effect on
banks in ROA in Islamic
Indonesia Banks in Indonesia,
Non Performing
Financing (NPF) has
a significant
negative effect on
ROA in Islamic
Banks in Indonesia,
Operational
Efficiency Ratio
(REO) has a
significant effect
negative ROA on
Islamic banks in
Indonesia.

2.2. Conceptualization
2.2.1. Sharia Bank

Sharia Bank is a Bank that conducts business activities based on Sharia

Principles and by type consists of Sharia Commercial Banks and Sharia People
Financing Banks. In the international realm of Islamic banks are often referred to as
Islamic Banking.

According to Rivai and Veithzal (2008), Islamic Banking is a bank that operates
in accordance with the principles contained in Islamic teachings, functions as a
business entity that channels funds from and to the public, or as a financial
intermediary. The Islamic principle in question is an agreement based on Islamic law
between banks, other parties for depositing funds and or financing business activities.
2.2.2. Principles of Sharia Banks
In the implementation of the management system 's funds, Islamic banks have
principles:
1. Principle for Custody or Deposits (Al-Wadiah)
Al-Wadiah can be interpreted as entrusted purely from one party to another,
both individuals and legal entities, which must be safeguarded and returned
whenever the entrusted party wants (Syafi'I Antonio, 2001).
In general there are two types of al-wadiah, namely:
a. Wadiah Yad Al-Amanah (Trustee Depository)
Wadiah Yad Al-Amanah (Trustee Depository) is a covenant of safekeeping of
goods / money where the recipient of the safekeeping is not permitted to use the
goods / money deposited and is not responsible for damage or loss of the
deposited item which is not caused by the act or negligence of the
depositor. The application in Islamic banking is in the form of safe deposit box
products.
b. Wadiah Yad adh-Dhamanah (Guarantee Depository)
Wadiah Yad adh-Dhamanah (Guarantee Depository) is a goods / money deposit
agreement where the recipient of the item deposited with or without the owner
of the goods / money can make use of the goods / money deposited and must be
responsible for the loss or damage to the goods / money deposited. All benefits
and benefits obtained from the use of goods / money deposited are the
recipient's rights. This principle is applied in current and savings products.

2. Profit Sharing Principle

This system is a system that includes procedures for the distribution of results
of operations between fund providers and fund managers. Forms of products based
on this principle are:
a. Al-Mudharabah
Al-Mudharabah is a business cooperation agreement between two parties where
the first party (shahibul maal) provides all (100%) capital, while the other party
becomes the manager (mudharib). Mudharabah business profits are divided
according to the agreement set forth in the contract, whereas if the loss is borne
by the owner of the capital as long as the loss is not due to negligence of the
manager. If this loss is caused due to fraud or negligence of the manager,
 the manager must be responsible for the loss. Mudharabah contracts are
generally divided into two types:
1) Muthlaqah Mudharabah
Mudharabah Muthlaqah is a form of cooperation between Shahibul Maal and
Mudharib whose scope is very broad and is not limited by the specifications
of the type of business, time, and business area.
2) Mudharabah Muqayyadah
Mudharabah Muqayyadah is a form of cooperation between Shahibul Maal
and Mudharib where mudharib provides limits to Shahibul Maal regarding
the place, method, and object of investment.
b. Al-Musyarakah
Al-musyarakah is a contract of cooperation between two or more parties for a
certain business in which each party contributes funds by agreement that the
benefits and risks will be borne together in accordance with the agreement.
Two types of al-musyarakah:
1) Musyarakah of ownership, created because of inheritance, will, or other
conditions that result in ownership of one asset by two or more people.
2) Musyarakah contract, created by way of agreement in which two or more
people agree that each of them provides musyarakah capital.

4. Principles of Sale and Purchase (Al-Tijarah)

This principle is a system that applies the procedure of buying and
selling, where the bank will first buy the goods needed or appoint the customer as
an agent of the bank to buy goods on behalf of the bank, then the bank sells the
goods to the customer at the price of a purchase price plus profit ). The
implications are:
a. Al-Murabaha
Murabaha is a contract of sale of goods by stating the acquisition price and
profit (margin) agreed by the seller and buyer.
b. Regards
Salam is a contract of buying and selling ordered goods with a suspension of
delivery by the seller and the repayment is done immediately by the buyer
before the ordered goods are received according to certain conditions. The bank
can act as a buyer or seller in a greeting transaction. If the bank acts as a seller
 and then orders another party to supply the ordered goods by greeting, this is
called a parallel greeting.
c. Istishna '
Istishna 'is a sale and purchase agreement between buyer and producer which
also acts as a seller. The method of payment can be in advance, installment, or
deferred payment until a certain period. The general characteristics of
ordered goods must be known which include: type, technical specifications,
quality, and quantity.
The bank can act as a buyer or seller. If the bank acts as a seller and then orders
another party to supply the ordered goods by means of istishna, this is called
parallel istishna.
5. Rental Principle (Al-Ijarah)
Al-ijarah is a contract for the transfer of use rights over goods or services,
through payment of rental wages, without being followed by the transfer of
ownership rights to the goods themselves. Al-ijarah is divided into two types,
including:
1. Ijarah (pure rent).
2. Ijarah al muntahiya bit tamlik (merging rent and buy).
6. Service Principle (Fee-Based Service)
This principle covers all non-financing services provided by banks. Forms of
products based on this principle include:
a. Al-Wakalah
Al-Wakalah is a customer who authorizes the bank to represent itself doing
certain service work, such as transfers.
b. Al-Kafalah
Al-Kafalah is a guarantee given by the guarantor to a third party to fulfill the
obligations of the second party or that is borne.
c. Al-Hawalah
Al-Hawalah is the transfer of debt from someone who owes it to others who are
obliged to bear it. The hawalah contract in banking is usually applied to
Factoring (factoring), Post-dated checks, where the bank acts as a bill collector
without paying the loan first.
d. Al-Rahn
Ar-Rahn is the activity of holding one of the borrower's property as collateral
for the loan received. The goods held have economic value. Accordingly, the
 party holding the party obtains a guarantee to be able to take back all or part of
his receivables. It can be simply explained that rahn is a kind of debt or
mortgage guarantee.
e. Al-Qardh
Al-Qardh is the gift of property to others who can be billed or asked to return or
in other words lend without expecting anything in return. This product is used to
help small businesses and social needs. These funds are obtained from zakat,
infaq and shadaqah funds.

Sharia Bank Products

According to Karim (2004), basically the products offered by Islamic banking
can be divided into three major parts, namely:
1) Fund distribution products (financing);
2) Fund raising products (funding);
3) Product service (service).
The activity of collecting and distributing funds is the main activity of
banking. The distribution of funds with the aim of obtaining revenue will be possible
if the funds have been collected. The collection of funds from the community needs to
be done in certain ways so that it is efficient and can be adapted to the planned
use. Whereas the activity of providing other bank services is only a supporter of the
two activities above.

Third-party funds
Third Party Funds are non-bank third party deposits consisting of demand
deposits, savings and time deposits. According to Karim, 2004 Sharia operational
principles applied in collecting community funds are as follows:
a. Wadi'ah Principle
The wadi'ah principle applied is the yad dhomanah wadi'ah that is applied to the
current account product. The dhamanah wadi'ah is different from the wadi'ah
amanah. In the wadiah amanah, in principle the deposited assets cannot be used by
the entrusted. While in wadiah yad dhamanah, the entrusted party (the bank) is
responsible for the integrity of the deposited assets so that he may make use of the
deposited assets. Because the wadi'ah applied in this giro Perbanakan product is
also characterized by yad dhamanah, the legal implications are the same as qordh,
where the customer acts as the lender of money, the bank acts as the lender. The
general provisions of this product are the profit or loss from the distribution of
funds to be owned or borne by the bank, while the owner of the fund is not
promised compensation and does not bear the loss.
b. The Mudharabah Principle
In applying the mudharabah principle, depositors or depositors act as shohibul
maal (owners of capital) and banks as mudhorib (managers). The funds are used to
fund murabahah or ijaroh. The funds can also be used by banks to finance
mudharabah. The results of this effort will be shared based on the agreed ratio. In
the event that a bank uses mudharabah financing , the bank is fully responsible for
the losses incurred. The pillars of mudharabah are fulfilled perfectly (there are
mudharib-there are capital owners, there are businesses that will be shared, there is
a ratio, there is a consent granted). The mudharabah principle is applied to time
savings products and time deposits. Based on the authority given by the
mudharabah principle fund depositors, it is divided into two:
1) Mudlaabah Mutlaqoh
The application of mudlaabah mutlaqoh can be in the form of savings and time
deposits so that there are two types of fund raising namely: mudharabah savings
and mudharabah deposits. Based on this principle there are no restrictions for
banks in the use of funds raised.
General provisions of this product are:
a) Banks are required to notify fund owners of the ratio and procedure for
notification of profits and / or profit sharing arising from the risk of
depositing funds. If an agreement has been reached, then it must be stated in
the contract.
b) For mudharabah savings, banks can provide savings cards as proof of storage,
as well as ATM cards or other withdrawal tools to savers. Mudharabah
deposits, banks are required to provide deposit certificates or bills (deposit)
to depositors.
c) Mudharabah savings can be collected at any time by savers in accordance
with the agreed agreement, but may not experience a negative balance.
d) Mudharabah deposits can only be disbursed in accordance with an agreed
time period. Extended deposits
after maturity will be applied the same as a new deposit, but if the contract is
included automatically renewed then no new contract is needed.
 e) Other provisions relating to savings and time deposits remain valid as long as
they do not conflict with Islamic principles.
2) Mudharabah Muqayyadah On Ballance Sheet
This type of mudaraba is a special deposit (retristed investment) in which the
owner of the fund can set certain conditions that must be obeyed by the
bank. For example, it is required to be used for a particular business or is
required to be used with a fixed contract or used for certain customers. The
characteristics of this type of deposit are as follows: the owner of the fund is
required to set certain conditions that must be done by the bank. The bank is
obliged to notify the owner of the funds regarding the ratio and procedure for
notification of the profit of the fund or the risk benefits arising from the deposit
of funds. If an agreement has been reached, then it must be stated in the
contract. As proof of deposit the bank issues special deposit evidence. Banks are
required to separate funds from other accounts. For mudharabah deposits, banks
must provide deposit certificates or bilyets to depositors.
3) Mudharabah Muqoyyadah Off Ballance Sheet
This type of mudharabah is a channeling of mudharabah funds directly to the
executor of the business, where the bank acts as an intermediary (arranger)
which brings together the owner of the fund with the business organizer. The
owner of the funds can set certain conditions that must be complied with by the
bank in finding business activities to be funded and the business operators. The
characteristics of this type of deposit are as follows: -as proof of bank deposits
issuing special proof of deposits. Banks are required to separate funds from
other accounts. Special deposits are recorded in a separate item in an
administrative account. Special deposit funds must be channeled directly to the
party mandated by the owner of the funds. The bank receives a commission for
the service of bringing the two parties together. Whereas the fund owners and
business operators apply the profit sharing ratio.
c. Complementary Agreement
To facilitate the implementation of fundraising, a complementary contract is
usually required. This supplementary agreement is not intended for profit, but is
intended to facilitate the implementation of financing. Although it is not intended
to be for profit, in a supplementary contract it is permissible to ask for
compensation for the costs incurred in carrying out this contract. The amount of
replacement costs is simply covering the costs that actually occur. One
 complementary contract that can be used for raising funds is a wakalah
contract. Wakalah in a banking application occurs when the customer authorizes
the bank to represent himself doing certain jobs, such as collections and money
transfers.

Financing
In Islamic banking, the actual use of the word lending is not appropriate because
of two things, including the following:
1. Loans are one method of financial relations in Islam. There are still many
methods taught by sharia besides loans, such as buying and selling, profit sharing,
rent and so on.
2. In Islam, lending and borrowing are social contracts not commercial
contracts. That is, if someone borrows something, he must not be required to
provide additional loan principal. This is based on the hadith of the Prophet SAW
which states that every loan that produces benefits is usury, while the scholars
agree that riba is haram. In Islamic banking, loans are called financing.

According to Karim in Antonio (2001), financing is one of the main tasks of

banks, namely providing funding facilities to meet the needs of parties who are deficit
units. The term financing basically means I Believe, I trust, 'I believe' or 'I put
trust'. Financing is the provision of money or bills that can be equated with that, based
on an agreement or loan agreement between a financial institution and another party
that requires the borrower to pay off the debt after a certain period of time, with
rewards or profit sharing (Rivai and Veithzal, 2008).

In general, financing objectives can be divided into two groups,

namely financing objectives at the macro level, and financing objectives at the micro
level (Muhammad, 2005). At a macro level, financing aims to:

1. Increasing the economy of the people, meaning: people who cannot access
economically, with the financing they can access the economy. Thus it can improve
its economic level.
2. The availability of funds for business improvement, means: for business
development requires additional funds. These additional funds can be obtained by
carrying out financing activities. The party with a surplus of funds distributes to the
party minus the funds, so it can be rolled out.
 3. Increasing productivity, which means: financing provides opportunities for the
business community to be able to increase its productive power. Because
production efforts will not work without funds.
4. Opening new jobs, means: with the opening of the business sectors through
the addition of funding funds, the business sector will absorb labor. This means
adding or opening new work fields.
5. Income distribution occurs, meaning: productive business communities are
able to carry out work activities, meaning they will get income from the results of
their efforts. Income is part of community income. If this happens, income will be
distributed .
As for micro, financing is provided in order to:
1. Efforts to maximize profits
This means that every business opened has the highest goal, which is to generate
profits. Every entrepreneur wants to be able to achieve maximum profit. To be able
to generate maximum profits, they need sufficient financial support.
2. Efforts to minimize risk
This means that efforts are made in order to be able to produce maximum profit,
then the entrepreneur must be able to minimize the risks that may arise. The risk of
lack of venture capital can be obtained through financing measures.
3. Utilization of economic resources
This means that economic resources can be developed by mixing between natural
resources and existing human resources, and capital resources do not exist. Then
certainly needed financing. Thus, financing basically can increase the efficiency of
economic resources.
4. Distribution of excess funds
This means that in the life of this community there are those who have excess
while there are those who lack. In connection with the problem of funds, the
financing mechanism can be a bridge in balancing and channeling excess funds
from the excess (surplus) to those who are deficient (minus) funds.
In accordance with the financing objectives as above, according to Sinungan
(1983) financing in general has a function to:
1. Increase the efficiency of money
Savers save their money in the form of demand deposits, savings and time
deposits. The money in a certain percentage is increased its use by banks for an
effort to increase productivity.
 2. Increase bar usability
Producers with financial assistance can move goods from a place where the use is
less to a place that is more useful.
3. Increase money circulation
Through financing the circulation of money will be more developed because
financing creates an excitement to try so that the use of money will improve both
quantitative and qualitative.
4. Gives the excitement of business
Entrepreneurs will always be in contact with banks to obtain capital assistance to
improve their businesses. Received financial assistance from the bank businessman
is then used to memp e rbesar business volume and productivity.
5. Economic stability
Meeting the basic needs of the people to reduce the flow of inflation and for
economic development efforts, bank financing plays an important role in
stabilizing the economy.
6. As a bridge to increase national income
The entrepreneurs who obtain funding certainly try to increase their
business. Increasing business means increasing profits. On the other hand,
financing disbursed to stimulate increased export activities will result in increased
foreign exchange for the country.
According to the nature of its use, financing can be divided into the following
two things:
1. Productive financing
P embiayaan intended to meet production needs in a broad sense, that is to increase
the business, whether production, trade and investment. Unlike conventional banks,
Islamic banks help meet all the working capital needs not by lending money but by
establishing partnership relationships with customers, where banks act as funders
(Shahibul maal), while customers are entrepreneurs (Mudharib).
2. Consumer financing
P embiayaan used to meet the needs of k onsumsi, which will be used to meet the
needs.

The agreements commonly used in channeling funds to Islamic banks are as

follows:
1. Murabahah Financing
Murabaha is a purchase transaction in which the bank calls j otal benefits. The
bank acts as the seller, while the customer acts as the buyer. The selling price is the
purchase price of the bank from the supplier plus profit (margin). In murabaha
banking is always done by installment payments.
2. Financing Greetings
Salam is a sale and purchase transaction where the goods being traded do not yet
exist. Therefore, the goods are handed over while the payment is made in cash. The
bank acts as a buyer, while the customer acts as a seller. At a glance this buying
and selling transaction is similar to buying and selling bonded labor, but in this
transaction the quantity, quality, price, and time of delivery of goods must be
determined with certainty.
3. Istishna Financing
Ishtisna 'products resemble greeting products, but in istishna' payments can be
made by the bank in several payment terms. The general provisions for istishna
financing are that the specifications of the ordered goods must be clear, such as the
type, size, quality and quantity. The agreed selling price is stated in the Istishna
'contract and may not change during the validity of the contract. If there is a change
in the order criteria and there is a price change after the contract is signed,
all additional costs will still be borne by the customer. Pembia Yaan istisnaa in
Bank Syariah is generally applied to the manufacturing and construction
financing .
4. Ijarah Financing
In essence, the Ijara defined as the right to m emanfaatkan goods / services by
paying certain benefits. At the end of the lease period, the bank may sell the goods
that it leases to the customer. Therefore, in Islamic banking, it is known as ijarah
muntahiyyah bittamlik (rent followed by transfer of ownership). The rental price
and the sale price are agreed at the beginning of the agreement.
5. Musyarakah Financing
Musharaka transactions are based on the willingness of the parties working
together to increase the value of the assets they have in common . All forms of
business involving two or more parties in which they together combine all forms of
resources, both tangible and intangible. Specifically, contributions from
cooperating parties can be in the form of funds, trading goods, entrepreneurship,
intelligence, ownership, equipment or intangible assets (such as patents or
goodwill), trust / reputation, and other items that can be valued in money.
 The general provisions for musyarakah financing are as follows:
1) All capital is put together to be used as musharaka project capital and managed
together. Every capital owner has the right to participate in determining the
business policies implemented by the project implementer.
2) Costs arising in project implementation and project duration must be known
together. Profits must be divided according to the portion of the agreement
while losses are divided according to the portion of the capital contribution.
3) Projects to be carried out must be stated in the contract. After the project is
completed the customer returns the funds together with the agreed profit sharing
for the bank.
7. Mudharabah Financing
Easyarabah is a form of cooperation between two or more parties in which the
capital owner (shahib al-mal) entrusts some capital to the manager (mudarib) with
a profit agreement. This form confirms the combination of 100% cash capital
contribution from shahib al-mal and expertise from mudarib.
The general provisions of an easy-to -abah financing scheme are as follows:
1) The amount of capital submitted to customers as capital managers must be
submitted in cash, and can be in the form of money or goods whose value is
expressed in money units. If the capital is submitted in stages, the stages must be
clear and agreed upon.
2) The results of managing mudharabah financing can be calculated in a way,
namely:
a) Calculation of project revenue (revenue sharing)
b) Calculation of project profits (profit sharing)
3) The results of operations are divided according to the agreement in the contract, at
the agreed monthly or time. The bank as the owner of capital bears all losses
except due to negligence and deviations from the customer.
4) Bank has the right to supervise work but not.

Non Performing Financing

Funding channeled by Islamic banks is very likely to contain risks in it, one of
which is non-performing finance. Problem financing is loans that have difficulty
 paying off due to intentional factors or external factors beyond the ability / control of
borrowing customers (Siamat, 2005).
The quality of financing is determined to be 5 (five) classes, namely smooth,
special attention, substandard, doubtful and loss, which is categorized as problematic
financing is the quality of financing that starts to be classified as special attention to
the Loss group. The size of the non-performing financing (Non Performing Finance)
shows the performance of a bank in managing the funds channeled. If the portion of
problematic financing grows, this will ultimately reduce the amount of income the
bank receives (Ali, 2004).

Return On Asset (ROA)

Return on Assets (ROA) is one of the ratios used to measure the ability of bank
management to obtain profits (profits) as a whole. This profitability ratio also
illustrates the efficiency of the bank's performance. Return on Assets (ROA) is very
important, because this ratio prioritizes the profitability of a bank as measured by
productive assets whose funds are mostly derived from Third Party Funds (DPK).
The greater the Return on Assets (ROA) of a bank, the greater the level of profit
achieved by the bank, and the better the bank's position in terms of asset use. Based
on Bank Indonesia Circular Number 12/11 / DPNP dated March 31, 2010 concerning
the Rating System for Commercial Banks Based on Sharia principles, Return on
Assets (ROA) is obtained by dividing profit before tax by the average total assets in a
period, the formula used to look for Return on Assets (ROA) are as follows (Bank
Indonesia):

The purpose of a bank's return on asset analysis is to measure the level of

business efficiency and profitability achieved by the bank concerned (Kuncoro, 2002,
548). ROA shows the ability of bank management in managing available assets to get
net income. The higher the return the better, it means that the dividends distributed or
reinvested as retained earnings are also greater (Kuncoro, 2002, 551).

5.3. Hypothesis
Based on the previous theoretical and research studies, a hypothesis was
formulated that could be used as a temporary answer to the problems in this study:
H1: Non Performing Finance (NPF) effect on Return on Assets
(ROA) Bank General Sharia.
H2: Funding for the results affect the Return On Asset (ROA) Bank General Sharia.
H3: The sale and purchase financing has an effect on Return on Assets
(ROA) of Syari Commercial Bank ah.

CHAPTER III
RESEARCH METHODOLOGY
6. Research methods
(Research design)
6.1. Research variable
In this study, the variables - variables used are as follows:
1. Independent Variable
The independent variable or the independent variable is the variable that influences or
is the cause of the change or the emergence of the dependent variable (Sugiyono,
2011). The independent variables in this study are Non Performing Finance
(NPF) , Production Sharing Financing and Buying and Financing .

2. Dependent Variable
The dependent variable or the dependent variable is the variable that is affected or
becomes a result, because of the independent variable (Sugiyono, 2011). The dependent
variable in this study is return on assets (ROA) .

6.2. Data Source Type

The object of research is Bank Syariah Mandiri using secondary data in the form
of financial reports for 201 6 - 201 8 .

6.3. Analysis Techniques

1. Multiple Linear Regression Analysis.
This analysis is used to determine the effect of independent variables on the
dependent variable. In this case the independent variable is the ratio of Non P erforming
Financing (NPF) , Finance for Results and Financing J ual Buy, while the dependent
variable is the Return on Assets (ROA) .
The multiple regression equation in this study is as follows:
ROA = α + β 1 L 1 _ NPF + β2 L 2 _ P BH + β3 L3_ P JB + ε l
Information:
Α : Constants
β1, β2, β3 : Coefficient of R egresi
ROA : Return on Assets s
NPF : Non Performing Financing
PBH : Natural Logarithm of Profit Sharing Financing
PJB : Natural Logarithms of Buy and Sell Financing
ε1 : Error

2. Statistical Test t

U ntuk determines i influence each variab e l independent of variab e l dependent

statistical t test was used with the following criteria:

1. If t arithmetic <t table, then H0 is rejected, meaning X1, X2, and X3 themselves
(partially) have no effect on Y.
2. If t arithmetic ≥ t table, then H0 is accepted, meaning X1, X2, and X3 individually
(partial) affect Y.
To find t arithmetic can use the following equation:

(Source: Sugiyono, 2011)

Information:
t = T value calculated
r = correlation value
n = Number of samples
6.4. References

Ali, H. Mashhud. (2004). Asset Liability Management. Jakarta: PT Elex Media

Komputindo.

Anto and Wibowo. MG (2012). "Determinants of Sharia Commercial Bank

Profitability Levels in Indonesia". In the Journal of Islamic Economics. La Riba
Volume VI, No. 2

Antonio, Muhammad Syafi'i, (2005). Islamic banks, from theory to practice. Gema
Insani Press: Jakarta.

Bachri, S., Suhadak and Saifi, M. (2013). "Effect of Financial Ratios on Financial
Performance of Islamic Banks".

Bambang Riyanto. (2008). Fundamentals of Corporate Spending. Yogyakarta: GPFE

Publisher.

BNI Syariah Bank. (2015). Financial Statements As of December 31, 2012 and 2013.
www.bnisyariah.co.id

Bank Indonesia. (2001). Bank Indonesia Circular No. 3/30 / DPNP. Bank
Indonesia. Jakarta.

Bank Indonesia. (2006). Sharia Bank Contracts and Products: Concepts and Practices
in Several Countries. Jakarta: Bank Indonesia.

Bank Indonesia. (2010). Bank Indonesia Circular No. 12/11 / DPNP. Bank
Indonesia. Jakarta.
Bank Mega Syariah. (2015). Financial Statements As of December 31, 2012 and
2013. www.megasyariah.co.id

Bank Muamalat Indonesia. (2015). Financial Statements As of December 31, 2012

and 2013. www.bankmuamalat.co.id

Bank Syariah Mandiri. (2015). Financial Statements As of December 31, 2012 and
2013. www.syariahmandiri.co.id

Dendawijaya, Lukman. (2004). Banking management. Jakarta: Ghalia Indonesia.

Firdaus, H Rachmat and Maya Ariyanti. (2009). Commercial Bank Credit

Management. Bandung: Alfabetta.

Ghozali, Imam. (2007). Multivariate Analysis Application with SPSS

program. Semarang: Diponegoro University Publisher Agency.

Gujarati, Damodar N. and Porter, Dawn C. (2009) "Basic Econometrics" 5th

edition. McGraw.Hill New York

Hatch, E, and Farhadi, H. (1982). Research Design and Statistics for Applied
Linguistics. Rowley: Newbury House Publisher, Inc.

Ir. Adi A. Karim, SE, MBA., MAEP, (2013). Islamic Bank: "Jurisprudence and
Financial Analysis" -Ed.4. Cet.9. Jakarta: PT Raja Grafindo.

Jesyka. (2014). "The Effect of Purchase and Financing Financing for Profit Sharing
Funds on the Profitability of Islamic Banks in Indonesia". Essay. Bandung: Faculty of
Economics, Widyatama University.
Cashmere. (2004). Banking Management, Jakarta: PT Raja Grafindo Persada.