Islamicity Performance Index as a Measure of Profitability and Financial Performance of Islamic Banks: A Literature Review

Julio Cahaya Hartawan; Agrianti Komalasari; Usep Syaipudin

doi:10.63922/ijebir.v5i03.3906

Julio Cahaya Hartawan Accounting Department, Economic and Business Faculty, University of Lampung, Indonesia
Agrianti Komalasari Accounting Department, Economic and Business Faculty, University of Lampung, Indonesia
Usep Syaipudin Accounting Department, Economic and Business Faculty, University of Lampung, Indonesia

DOI: https://doi.org/10.63922/ijebir.v5i03.3906

Keywords: Islamicity Performance Index, Profitability, Financial Performance, Islamic Banking, Literature Review

Abstract

This study aims to analyze the role of the Islamicity Performance Index (IPI) in measuring the profitability and financial performance of Islamic banks through a literature review approach. The study reviewed 20 previous research articles published between 2020 and 2025 related to Islamicity Performance Index, profitability, and Islamic banking performance in Indonesia and Malaysia. The data were analyzed using descriptive qualitative methods by comparing research variables, methodologies, and findings from previous studies. The results indicate that the Islamicity Performance Index generally has a positive relationship with the profitability and financial performance of Islamic banks, particularly measured through Return on Assets (ROA). Several studies also found that IPI provides a more comprehensive evaluation framework because it measures not only financial achievement but also sharia compliance, social responsibility, and equitable welfare distribution. However, inconsistencies in previous findings suggest that the relationship between IPI and profitability may vary depending on research methods, variables, and research objects.

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