Bank-specific and macroeconomic profitability determinants of Islamic banks The case of different countries

Purpose - The purpose of this paper is to inspect whether bank-specific and macro-economic determinants influence Islamic banks' profitability in the selected countries of different regions. Design/methodology/approach - In order to achieve the study objective and to answer the question, the balanced panel data regression model has been used. Bank level data is used and this study examines the alternative measures ROA and ROE as a bank-specific function and macro-economic determinants. Findings - The study results signify that banks with larger assets size and with efficient management lead to greater return on assets. Originality/value - The paper shows that management efficiency regarding operating expenses positively and significantly affects the banks' profitability.