This paper analyses the relationship between oil price and bank performance in net oil exporting countries and non-net oil exporting countries. Using data on 74 Islamic banks consisting of 36 Islamic banks in net oil exporting countries and 38 Islamic banks in non-net oil exporting for a period of 2005-2015, we test the hypotheses of oil price direct and indirect effects on banks performance. Our results indicate that oil price has a significant negative direct and indirect effect on bank performance, through its bank-specific variables and macroeconomic variables in net oil exporting countries while, none was found in non-net oil exporting countries.