Commercial banks, as one of the main pillars of the financial system, play a vital role in mobilizing financial resources, allocating credit, and promoting economic growth. Therefore, credit risk management and bank-specific characteristics are considered key determinants of improving financial performance and enhancing the stability of banks. The present study aims to examine the role of credit risk management and bank-specific characteristics in the financial performance of banks listed on the Tehran Stock Exchange. In terms of purpose, this research is applied, and in terms of methodology, it is a descriptive-analytical study using an ex post facto research design. The statistical population consists of 16 commercial banks listed on the Tehran Stock Exchange over the period from 2017 to 2023 (corresponding to the Iranian years 1396–1402). The research data were extracted from the banks' financial statements, and the hypotheses were tested using panel data regression models estimated in EViews 12. The findings indicate that the capital adequacy ratio has a positive and statistically significant effect on banks' financial performance. Moreover, the cost efficiency ratio has a negative and statistically significant effect on financial performance, suggesting that improvements in cost efficiency enhance banks' financial performance. In addition, the average lending rate exerts a positive and statistically significant impact on financial performance. Overall, the findings highlight the importance of strengthening capital adequacy, improving cost efficiency, and adopting optimal lending policies to enhance the financial performance of commercial banks.