The Effect of Capital Adequacy Ratio (CAR), Operating Income Operating Costs (BOPO), and Non-Performing Financing (NPF) on Return On Asset (ROA) at Indonesia-Malaysia Sharia Commercial Banks in 2019-2023

This study aims to analyze the effect of Capital Adequacy Ratio (CAR), Operating Income Operating Costs (BOPO), and Non-Performing Financing (NPF) on Return On Asset (ROA) in Islamic commercial banks in Indonesia and Malaysia for the 2019-2023 period. The quantitative approach is used with purposive sampling techniques, involving Islamic banks that meet certain criteria. The data analyzed comes from the annual financial statements published by the Financial Services Authority (OJK) and Bank Negara Malaysia. Multiple linear regression analysis was performed after meeting classical assumption tests, including normality, multicollinearity, heteroscedasticity, and autocorrelation. The results showed that CAR and NPF had a positive influence on ROA, while BOPO had a negative influence. The coefficient of determination shows that the regression model is able to explain most of the variation in ROA. These findings confirm the importance of managing operational efficiency and financing risks to increase the profitability of Islamic banks. This research provides implications for Islamic bank management in improving financial performance and supporting economic growth based on sharia principles in Indonesia and Malaysia.