Islamic financial institutions, focusing on adherence to Sharia financial principles, have become a primary concern in developing the financial sector by Islamic principles. This mini-research aims to analyze the influence of Sharia financial principles on the performance of Islamic financial institutions in the Iqtishad Cooperative of the Islamic University of Malang (Unisma). The study utilizes qualitative and quantitative approaches, conducting surveys and interviews with members and managers of the Iqtishad Cooperative Unisma to gain insights into the understanding, implementation, and impact of Sharia financial principles.

The research findings indicate that Sharia financial principles such as the prohibition of usury (interest), profit and loss sharing, and the prohibition of speculative practices positively influence the trust of members and shareholders in the performance of the Iqtishad Cooperative. Furthermore, a deeper understanding of these principles among the cooperative's management and members appears to enhance transparency, ethics, and commitment to carrying out Sharia financial activities. In this context, the research concludes that the understanding and implementation of Sharia financial principles significantly impact the performance of Islamic financial institutions in the Iqtishad Cooperative Unisma, contributing to the achievement of financial goals in accordance with Islamic principles. Thus, this research provides valuable insights into Islamic financial institutions within the cooperative context and their positive contribution to the overall development of the Sharia financial sector.