Cost Components as Predictors for the Profitability of sharia Banks : (Study on PT. Bank Syariah Mandiri and PT. Bank Syariah Mega Indonesia)

The aim of this paper is to observe the cost structure in two prominent sharia banks in Indonesia. The Bank’s cost comprises of many cost components such as operational and non-operational costs. The study employed descriptive and inferential statistics to explain the data characteristics from those banks and tried to determine whether those costs influenced the profitability for the period of 2007-2008. The data were collected on the monthly basis for the period. The result of the study showed that there were some similarities and differences about the behavior of those banks within the study period. By using inferential statistics method, especially with the multiple regression analysis and hypothetical testing with F-test and t-test, the study demonstrated that the null-hypothesis was rejected which means that those costs simultaneously influenced on the bank’s profitability for the period.