Factors Determine Islamic Banking Performance in Malaysia: a multiple Regression Approach

Total overhead to total assets  

It is an indicator for bank’s operating cost. The variable comprises cost for salaries 

as well as branches’ and HQ’s operating cost.  Sufian (2010) found that total overhead to 

total assets have a negative and significant impact on the profitability of Malaysian 

Islamic banks. Furthermore, the entrance of foreign banks led to higher overhead cost. 

Hassan and Bashir (2003) found that total overheads to total assets do not have any 

significant co-efficiency in ROA and ROE. 

H3 – There is a negative significant relationship between total overhead to total 

assets and the performance of banks.