DOES THE RISK PROFILE, LIQUIDITY RATIO, GOOD CORPORATE GOVERNANCE AND INTELLECTUAL CAPITAL ABLE TO AFFECT THE FINANCIAL PERFORMANCE OF ISLAMIC BANKS IN INDONESIA?

Financial performance is one consideration for investors in investing in a bank. The decline in financial performance can affect banks in obtaining future earnings. the prospect of a bank is highly dependent on the ability of management in managing risk, the level of liquidity, banking governance, and managing intangible assets. The sample in this study were all Islamic commercial banks operating in Indonesia, the observation period of this study was 2012 to 2016. The variables used were Performance measured through the Return On Asset approach, Risk Profile measured through the Non Performance Financing ratio, Liquidity through Capital Adequacy Ratio ratio approach, Good Corporate Governance through the IPCG index approach, and Intellectual capital through the Value Added Capital Employed approach, Value Added Human Capital, and Structural Capital Value Added. This study uses Multiple Regression as an analytical tool. The results of this study indicate that only the risk profile, level of liquidity and Intellectual capital of Value Added Capital Employed have influence while Good Corporate Governance, Intellectual capital from Value Added Human Capital and Structural Capital Value Added have no influence over financial performance of Islamic Banking in Indonesia.