This study aims to examine the effect of Capital Structure, Inflation and Operational
Efficiency on the Financial Performance of Islamic Commercial Banks in Indonesia.
Capital Structure measured by Debt Equity Ratio (DER), Inflation and Operational
Efficiency measured by Operating Expenses to Operating Income (BOPO). The
sampling method used is Purposive Sampling. Based on the purposive sampling
method, 15 Islamic Banks listed on the Financial Services Authority were obtained
during 2017-2021 so that 70 data were obtained. The analysis technique used in this
study is descriptive statistical test, classical assumption test (normality test,
multicollinearity test, heteroscedasticity test and autocorrelation test) and hypothesis
testing using SPSS version 26. The results showed that Capital Structure has a
negative effect on Financial performance. Inflation has a negative and insignificant
effect on financial performance. Operational Efficiency has a positive and
insignificant effect on Financial Performance.
Keywords: Financial performance of Islamic commercial banks, capital structure,
inflation, operational efficiency.