The purpose of this empirical study is to analyze and compare the performance of Islamic and conventional banking in Egypt and to find out which of the banking streams is performing better than the other. To make appropriate comparative analysis, three Islamic banks (Faisal Islamic Bank, ElBaraka Misr, and National Bank for Development) and six conventional banks (National Bank of Egypt, Banque Misr, Bank of Alexandria, National Societe Generale Bank, Arab African International Bank, Commercial International Bank) were used during the period from 2008 to 2010. Financial ratios were estimated from annual reports and financial statements. Seven financial ratios were used to gauge profitability, liquidity and credit risk; and a model known as “Bank-o-meter” was used to gauge solvency. Findings indicate the superiority of conventional banks over Islamic ones in profitability, liquidity, credit risk management as well as solvency.