<![CDATA[The growth of Islamic banking assets in Indonesia following the global health crisis faces significant challenges due to uncertainty in macroeconomic conditions and the post-pandemic structural recovery process. These dynamics require adaptive internal governance, as fluctuations in financial performance can directly threaten the sustainability of business expansion for Islamic financial institutions. This quantitative study aims to empirically test the effects of operational efficiency and financing risk on asset growth, with profitability serving as a mediating variable. This study employs a purposive sampling approach covering 13 Sharia Commercial Banks (BUS) in Indonesia under the supervision of the Financial Services Authority (OJK). The collection of annual financial statement data for the 2021–2025 period yielded a total of 65 observations. The methodological framework was analyzed using panel data regression and indirect effect path testing (Sobel test) via EViews 12 software. The empirical findings reveal that operational efficiency (BOPO) paradoxically exerts a significant positive impact on asset growth, proving that directing operating expenses toward productive, targeted allocations effectively fuels bank expansion. In contrast, financing risk (NPF) acts as a severe roadblock, carrying a sharp negative influence on the asset growth rate and confirming that a rise in bad loans directly puts the brakes on asset accumulation. Furthermore, profitability (ROA) successfully serves as a vital mediating bridge for both pathways, significantly connecting BOPO to asset growth as well as bridging the impact of NPF on asset growth. This insight conveys a clear message: strictly controlling operating costs and keeping credit default rates low are essential for improving profitability, which ultimately acts as the main financial driver fuelling sustainable asset growth for Ssharia Commercial Banks (BUS).]]>
