Factors that influence the profitability of islamic banking in Malaysia

The purpose of this research is to study the determinants (liquidity, asset management and economics factors) that influence the profitability of the Islamic banking in Malaysia. From this research, the data was collected using secondary data from the annual reports of the selected Islamic banks through their own website or Bursa Malaysia which is considered as private and confidential. This data covered for five (5) years from the period of 2015 until 2019. Innovation Theory of Profit was used to support for variables in this study. Eviews Version 10 also was utilized to analyse the data and explain the describing the analyses or tests of each determinants or variables involved by using table, histogram and diagram. This study will contribute benefits to the banking industry and the country in order to manage their financial performance as well as increase their profitability. Findings of the research revealed that these three variables (liquidity, asset management and economics factors) have significant relationship with the profitability of Islamic banking in Malaysia. The recommendation for the related issues faced by Islamic finance also discussed to solve its problems.