Author(s): Indo Yama Nasarudin and Suhendra
This study aims to analyze the factors that determine the profitability of savings and loan cooperatives and Islamic financing. The research sample consisted of 29 savings and loan cooperatives and sharia financing with the category of national-scale primary cooperatives located in Jakarta. Measurement of variables that determine profitability with the CAMELS approach and regulations of the Minister of Cooperatives and SMEs related to the health assessment of savings and loan cooperatives and Islamic financing. Based on the results of data processing and analysis with the partial least squarre method, the results of variables that have a significant effect on the profitability of savings and loan cooperatives and Islamic financing are the variables of identity, asset quality, liquidity and management variables at a significance level of 5%. Meanwhile, other variables that have a significant effect on profitability at a significance level of 10% are capital, efficiency, sharia compliance. The variables that have a positive influence on the profitability of savings and loan cooperatives and sharia financing are capital, sharia compliance, liquidity and management. While the variables of efficiency, identity and asset quality have a negative influence on the profitability of savings and loan cooperatives and sharia financing. The variables that are most dominant in influencing the profitability of savings and loan cooperatives and Islamic financing are asset quality, then management and liquidity. So that this variable becomes an important variable that needs to be considered by savings and loan cooperatives and Islamic financing in increasing the value of its profitability. The coefficient of determination is 0.403. This shows that the profitability variable can be explained by capital, earning asset quality, management aspects, efficiency, liquidity, cooperative identity, 40.30 percent compliance with sharia principles while the remaining 59.70 percent is explained by other factors.