This study examines the performance of Islamic banks in Indonesia, focusing on profit-sharing practices and the application of Sharia Maqasid principles. The research uses quantitative methods to analyze financial statements of Islamic banks from 2012 to 2023, employing the Sharia Maqasid Index (SMI) with quadrant analysis. The study aims to identify factors influencing Islamic bank performance and assess how profit-sharing aligns with Islamic law. Results show that BRI Syariah Bank has the best financial performance, while BNI Syariah Bank excels in Sharia Maqasid performance. Other banks with good performance include Bank Jateng Syariah, Bank Mandiri Syariah, Panin Bank Syariah, and BCA Syariah. The study highlights the importance of considering both financial and social performance in Islamic banking. The Sharia Maqasid Index, based on three principles—education, justice, and welfare—provides a comprehensive framework for evaluating Islamic bank performance. The research concludes that Islamic banks should integrate these principles into their operations to enhance performance and align with Islamic law. The study also emphasizes the need for further research to explore the impact of profit-sharing practices on Islamic banking development in Indonesia.This study examines the performance of Islamic banks in Indonesia, focusing on profit-sharing practices and the application of Sharia Maqasid principles. The research uses quantitative methods to analyze financial statements of Islamic banks from 2012 to 2023, employing the Sharia Maqasid Index (SMI) with quadrant analysis. The study aims to identify factors influencing Islamic bank performance and assess how profit-sharing aligns with Islamic law. Results show that BRI Syariah Bank has the best financial performance, while BNI Syariah Bank excels in Sharia Maqasid performance. Other banks with good performance include Bank Jateng Syariah, Bank Mandiri Syariah, Panin Bank Syariah, and BCA Syariah. The study highlights the importance of considering both financial and social performance in Islamic banking. The Sharia Maqasid Index, based on three principles—education, justice, and welfare—provides a comprehensive framework for evaluating Islamic bank performance. The research concludes that Islamic banks should integrate these principles into their operations to enhance performance and align with Islamic law. The study also emphasizes the need for further research to explore the impact of profit-sharing practices on Islamic banking development in Indonesia.