The development of Islamic economics in Indonesia, especially in the Islamic
banking industry, has experienced very rapid growth. This is evidenced by the
increasing number of Islamic banking institutions. This is because Islamic banking
puts forward the values of Islamic teachings so that it adheres to a profit-sharing
system. The implementation of the profit-sharing system generally includes
financing with the contracts: mudharabah and musyarakah. As an Islamic financial
institution that also carries out economic activities, making a profit is something
that cannot be avoided, especially regarding the sustainability of the institution.
Because with the profit earned, it is possible for investors to do business with the
bank, especially in terms of equity participation with the provision of profitsharing.
This research aims to determine whether there is a significant effect of
profit–sharing financings on the profitability of Islamic General Banks in Indonesia
by a certain period, using descriptive analysis with a quantitative approach. The
final result of this research shows that there was a significant and negative effect
between mudharabah financing and the profitability of equity, on the other hand,
there was a significant and positive effect between musyarakah financing and the
profitability of equity.
Keywords: Mudharabah Financing, Musyarakah Financing, Islamic Bank,
Profitability of Equity.