<![CDATA[Background: Background: The profitability of Islamic Commercial Banks in Indonesia is essential for maintaining financial stability and sustainable growth. However, increasing banking assets do not necessarily translate into improved financial performance, highlighting the importance of identifying profitability determinants. Research Gap: Previous studies have reported inconsistent findings regarding the effects of bank-specific and macroeconomic factors on Islamic bank profitability, particularly amid structural transformations in Indonesia's Islamic banking industry. Novelty: This study provides updated empirical evidence by simultaneously examining internal banking characteristics and macroeconomic determinants within the context of industry consolidation, pandemic-related disruptions, and post-pandemic recovery. Method: This quantitative study employs a causal research design using secondary panel data from Indonesian Islamic Commercial Banks. Purposive sampling and panel data regression using the Random Effect Model were applied to examine profitability, measured by Return on Assets (ROA). Results: The findings demonstrate that Capital Adequacy Ratio (CAR) and Financing-to-Deposit Ratio (FDR) positively and significantly affect profitability, whereas Operating Expenses to Operating Income (BOPO) has a significant negative effect. Non-Performing Financing (NPF), inflation, and the BI Rate exhibit no statistically significant effects. Collectively, the variables significantly explain profitability, with an adjusted R² of 78.94%. Conclusion: Bank-specific factors, particularly capital adequacy, financing intermediation, and operational efficiency, are more influential in determining Islamic bank profitability than the examined macroeconomic indicators. These findings emphasize the importance of strengthening capital management, optimizing productive financing, and improving operational efficiency.]]>
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