The Influence of Mudharabah and Musyarakah Financing on the Return on Equity (ROE) at Bank BCA Syariah

Abstract The financial sector in Indonesia functions under two models: conventional banking and Islamic (sharia) banking. An Islamic bank is a financial institution whose operations involve collecting funds from the public and delivering them back to the community in the form of finance, based on a profit-sharing scheme that corresponds to Islamic principles. Return on Equity (ROE) is the ratio between net income after tax and total equity, and it is considered a measure of profitability. ROE is obtained by comparing net income to capital, and in Islamic banks, net income largely comes from financing activities, particularly mudharabah and musyarakah financing. This study aims to analyze the effect of mudharabah and musyarakah financing on the Return on Equity (ROE) at Bank Central Asia (BCA) Syariah Indonesia for the period 2021–2023. This study employs a quantitative approach with secondary data sources to comprehend the problem. With the aid of SPSS software version 25, this study employs multiple linear analysis techniques. The tests used in this study include the coefficient of determination, multiple linear analysis, hypothesis testing, and traditional assumption tests. This study concludes that mudharabah financing has a significant effect on ROE with a t-value of 3.444 > t-table 2.03452 and a significance value of 0.02 < 0.05, musyarakah financing does not have a significant effect on ROE with a t-value of 1.418 < t-table 2.03452 and a significance value of 165 > 0.05, and that mudharabah financing and musyarakah financing simultaneously affect ROE with an F-value of 8.851 and a significance level of 001. Sig (0.01 < 0.05) and F-value > F-table (8.851 > 3.28).