The Effect of Profitability Ratio on Liquidity Ratio to Assess Financial Performance Before and After Merger at PT Bank Syariah Indonesia (BSI) 2019 - 2025 Period

Abstract

This study aims to determine the effect of Return on Assets (ROA) and Return on Equity (ROE) on the Financing to Deposit Ratio (FDR) at PT Bank Syariah Indonesia Tbk for the 2019–2025 period, as well as to analyze the ability of ROA and ROE to explain changes in the FDR. The study employs a quantitative method using secondary data derived from the financial statements of PT Bank Syariah Indonesia Tbk for the 2019–2025 period. Data analysis was conducted using partial tests (t-test), simultaneous tests (F-test), and the coefficient of determination (R²). The results indicate that, partially, neither ROA nor ROE has a significant effect on the FDR. Simultaneously, ROA and ROE also do not have a significant effect on the FDR. The coefficient of determination (R²) value of 0.064 indicates that ROA and ROE explain only 6.4% of the variation in the FDR, while the remaining 93.6% is explained by variables outside the scope of this study. Thus, profitability—proxied by ROA and ROE—has not exerted a significant influence on liquidity—proxied by the FDR—at PT Bank Syariah Indonesia Tbk during the 2019–2025 period. This suggests that the FDR level is influenced more by other factors, such as financing disbursement policies, third-party funds, asset quality, operational efficiency, and management strategies for maintaining the bank's financial stability.