Indonesia and Malaysia are the largest Muslim majority countries, especially Indonesia. Being one of the largest countries with the largest Muslim majority population in ASEAN, while Indonesia is still lacking in the aspect of Islamic banking when compared to Malaysia. This study aims to compare the financial performance of one of the Islamic banking between the two countries, namely Bank Muamalat Indonesia and Bank Islam Malaysia Berhad. One of the variables of financial development in a nation is a keeping money, which includes a work as a collection and subdizing institution This research uses quantitative research. The data used in this study are secondary data obtained from the annual report registered by OJK at Bank Muamalat Indonesia and the annual report registered by state bank of Malaysia of Islamic Banking at Bank Islam Malaysia Berhad for the period 2020-2023. Using the CAMEL analysis approach, there are five aspects in CAMEL analysis, namely (capital, assets, management, equity and liquidity). The results of this study indicate that the CAMEL analysis at Bank Muamalat Indonesia and Bank Islam Malaysia Berhad for the period 2020-2023 has no difference from the results of the analysis on the CAR, NPF, NPM, FDR ratios with the category “Healthy” while the ROA ratio at Bank Muamalat Indonesia gets as a bank with the category “Unhealthy” and Bank Islam Malaysia Berhad from 2020 to 2023 the bank gets the category “Less healthy”. In the aspect of profitability in the BOPO ratio, there is a difference in Bank Muamalat Indonesia getting the category as a “Unhealthy” bank and Bank Islam Malaysia Berhad as a bank with the “Healthy” category. In this study, Bank Muamalat Indonesia paid more attention to the profitability aspects of the ROA and BOPO ratios, while to Bank Islam Malaysia Berhad to pay more attention to the profitability aspects of the BOPO ratio.