ABSTRACT
The purpose of this research is to analyze the impact of Islamic bank’s internal factors, such as size, Mudharabah time deposit and non performing financing (NPF) on return on asset (ROA) and return on equity (ROE) in Indonesia. This research uses quantitative approach such as data stationarity test and cointegration test. The data used are obtained from the Bank of Indonesia, which cover the period during September 2003 until September 2014. The results of this study show that the Mudharabah time deposit and the non performing financing (NPF) affect ROA negatively. These results suggest that the sample of Islamic banks have been successfully maintained its credit risks and have been able to get the optimum profitability.
