<![CDATA[This study aims to analyze the effect of Non-Performing Financing (NPF), Operational Efficiency (BOPO), and Capital Adequacy Ratio (CAR) on financial performance proxied by Return on Equity (ROE) in Islamic Commercial Banks in Indonesia during the 2021–2025 period. This study employed a quantitative approach using secondary data obtained from the financial statements of Islamic Commercial Banks registered with the Financial Services Authority (OJK). The population of this study consisted of all Islamic Commercial Banks in Indonesia, while the samples were selected using purposive sampling based on specific criteria, resulting in 12 Islamic Commercial Banks as the research sample. Data analysis in this study used panel data regression with the Random Effect Model (REM) approach to determine the effect of the independent variables on ROE. The partial test results (t-test) indicate that the NPF variable has no significant negative effect on ROE. Meanwhile, the BOPO variable has a significant negative effect on ROE, and CAR has a significant positive effect on ROE, indicating that operational efficiency and capital adequacy play an important role in improving the financial performance of Islamic banks. The simultaneous test results (F-test) show that NPF, BOPO, and CAR simultaneously have a significant effect on ROE. The coefficient of determination (R²) value of 0,591912 indicates that 59% of the variation in ROE can be explained by these three variables, while the remaining percentage is influenced by other variables outside the scope of this study. The findings of this study confirm that operational efficiency and capital adequacy are important factors in improving the financial performance of Islamic Commercial Banks in Indonesia during the 2021–2025 period.]]>
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