The focus of this study was to establish the impact at which economic growth and digitalization independently affect the profitability and the credit risks of commercial banks, and furthermore to assess whether Islamic banks or conventional banks are more impacted with each aspect. I employed an unbalanced panel data consisting of 139 commercial banks, both Islamic and conventional banks. The period covered by the study spanned for 14 years between 2001 to 2014 and incorporated banks for 9 out of the 10 countries that are pioneers in Islamic banking with 95% of all the Islamic bank estimated the panel data using dynamic panel models employing. Generalized methods of moments (GMM). I find that economic growth impacts the profitability of commercial banks negatively and Islamic banks are significantly less impacted in this regard and likewise economic growth exhibited a positive relationship with the credit risk of Islamic banks more than that of conventional banks. With regards to digitalization, I found it to be surprisingly inversely related to both profitability and credit risks of commercial banks with Islamic banks facing more impact of the same. The results presented in the study have significant policy implications to academicians, policymakers, international bodies as well as governments.