Comparative Analysis of the Performance of Sharia and Conventional Banks in a Reviewspiritual Capital

Abstract

This study aims to review Spiritual Capital with a prophetic paradigm: Shiddiq, Tabligh, Amanah, and Fathonah (STAF) and conduct an empirical comparative study to reveal differences in the performance of Islamic banking and conventional banking in Indonesia in the pre- and post-Covid-19 pandemic. This study makes use of a sample of up to 39 banks, comprising 36 conventional banks and 3 Islamic banks that were drawn from the Indonesia Stock Exchange. Islamic spiritual hub It naturally stems from the prophetic perspective, which embraces global principles. use Rasulullah SAW as the finest example of spiritual principles (uswatun hasanah). Tabligh, Faith, and Fastness (STAFF).Intensive The personality of Prophet Muhammad SAW is excellent. Siddiq, or constantly adhering to the truth in word and deeds, is a quality that originates with Allah Allah Azza wa Jalla, the Lord of the Universe. When referring to company performance, intensive means managing corporate entities correctly and properly, not to the cost of all stakeholders. This study employs a quantitative methodology. The statistical program for social science, or SPSS, version 22.0 for Windows, is used to process data.using the Homogeneity, Normality, and Classical Assumption testsT-test for independent samples. The outcomes are The study's findings indicated variablesShiddiq, which measures profitability using proxies like Net Profit Margin and Earning Per Share, does not reveal any appreciable differences in the performance of Indonesia's two banking groups—Islamic and conventional—in terms of Spiritual Capital using a prophetic paradigm, either before or after the Covid-19 pandemic. Despite the fact that Islamic banking has a lower average profitability performance (NPM and EPS) than conventional banking, the rise of Islamic banking's profitability performance has been quite strong, keeping pace with the expansion of Indonesia's Islamic economy. Based on the findings of the study and the subsequent debate, it has been empirically demonstrated that there were disparities between Islamic and conventional banking performance in Indonesia prior to and following the Covid-19 epidemic, with all Islamic banks receiving the best audit opinion. Regarding the Amanah variable, studies conducted prior to the Covid-19 epidemic demonstrated notable variations in the operating outcomes of Islamic and conventional banks; however, these differences did not materialize following the pandemic.