The Impact of Murabaha Sale to the Purchase Orderer on the Profitability of Jumhouria Bank: An Empirical Study During the Period (2016-2023)

Abstract

This study aimed to identify the impact of Islamic Murabaha to the purchase orderer on the profitability of Jumhouria Bank during the period (2016-2023). The descriptive and analytical approaches were utilized by conducting a simple linear regression analysis to test hypotheses and answer the study's questions. The study revealed several key results, most notably: the existence of a statistically significant impact of Murabaha to the purchase orderer financing on the Return on Assets (ROA), which contributes to increasing investments in the assets of Jumhouria Bank. Additionally, there is a statistically significant impact of Murabaha to the purchase orderer financing on both the Return on Equity (ROE) and the Earnings Per Share (EPS) at Jumhouria Bank, which reflects positively and directly on shareholders, thereby increasing the share value in the financial market. The study reached a set of recommendations, most importantly: the necessity of expanding the utilization of financial resources at Jumhouria Bank by diversifying other financing structures and working to achieve a balance among them to increase the bank's profits.