Considering the MENA region, this research examines how the banks’ financial performance is influenced by credit risk. Despite its development and expansion, credit risk remains to be a major concern for the MENA banking industry. Therefore, it is crucial to empirically explore and understand the nexus between the bank’s financial performance and credit risk in MENA region. In this regard, credit risk is measured through loans and advances to total deposits, while three different measures of the banks' returns are incorporated to capture their financial performance. Return on assets, net interest margin, and return on equity represent examples of these measures. Panel regression analysis was conducted on the sample data of 135 MENA region banks, covering the time period from 2015 to 2019. This research found that profitability and financial performance were adversely and seriously impacted by credit risk. Results indicate that loans and advance to total deposits ratio adversely affected MENA banking institutions’ performance. Moreover, the bank size was also found as a vital aspect in influencing financial performance. This research’s results imply that the banks' management needs to efficiently administer credit risk operations to achieve their financial goals and maximise shareholders' benefits.