Bank of Palestine (BOP) Announces First Half 2013 Results: Net Profit Up to $18.7 million

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Bank of Palestine

20 Aug, 2013, 11:59 GMT

RAMALLAH, Palestine, August 20, 2013 /PRNewswire/ --

Bank of Palestine (BOP), the largest Palestinian bank, disclosed its draft interim consolidated financial statements and semi-annual report for 2013.

Results Highlights:

  • Net profit reached USD 18.71 million, compared with USD 18.29 million at the end of June 2012 (an increase of 2.30%).
  • Assets increased to reach USD 2.18 billion (an increase of 8.85%).
  • Owner's equity reached USD 229 million (an increase of 3.62%).
  • The bank's market share in Palestine has increased during the first half of 2013, to reach 25.24% and 21.91% in loans and deposits respectively, compared with 23.75% and 20.77% at end of 2012. 
  • Loans increased to reach USD 1.03 billion (an increase of 5.04%). 
  • Deposits increased to reach USD 1.696 billion (an increase of 9.10%).

In 2013, Bank of Palestine continued to be profitable and resilient, showing strong increases in several key performance indicators, despite regional instability and a challenging macroeconomic environment; net profit reached USD 18.71 million, compared with USD 18.29 million at the end of June 2012 (an increase of 2.30%); assets increased to reach USD 2.18 billion compared to USD 2 billion at the end of 2012 (an increase of 8.85%); and owner's equity reached USD 229 million compared to USD 221 million at the end of 2012 (an increase of 3.62%).

The bank's market share has also increased during the first half of 2013, to reach 25.24% and 21.91% in credit facilities and deposits respectively, compared with 23.75% and 20.77% as at end of 2012.  During this period, the bank continued its efforts in playing a vital role in economic growth by increasing our lending to all segments of the economy, thus increasing the loans portfolio by 5.04% to reach USD 1.03 billion, compared with USD 976 million as at end of December 2012.  Deposits also witnessed a steady increase of 9.10% to reach USD 1.696 billion at end of June 2013, compared with USD 1.554 billion at end of 2012.

Hashim Shawa, Chairman and General Manager of BOP, shared his optimistic outlook on the political and economic fronts driven mainly by US Secretary of State John Kerry's recent initiative in Palestine: "We are hopeful that this initiative will take a comprehensive approach and lead to both political and economic developments in the near future. These major developments and their potential outcome will only contribute to even more positive results for the bank, since we are well positioned to capitalise on the improving situation, and our business strategy has been built factoring in existing market conditions, therefore any improvement, will only lead to further success."

As a tribute to the bank's consistent performance, solid balance sheet, range and quality of its services, strong risk management and corporate governance, and positive impact on the Palestinian economy and society, Bank of Palestine has been recognized once again by several prestigious international institutions (including Euromoney, Global Finance, EMEA Finance, Banker ME and several others) as the "Best Bank in Palestine".  

BOP also received a special commendation this year for Leadership in the Middle East as part of the "Sustainable Bank of the Year" award by the Financial Times (FT), and the International Finance Corporation (IFC). This commendation recognizes the bank's efforts in extending the reach of its sustainability strategy throughout the bank's entire operation including promoting sustainable finance, developing a sustainable economy, gender inclusion, and investing in youth.  It also recognizes BOP's corporate social responsibility (CSR) initiatives that are based on a dynamic and well studied community outreach programme.

To view the semi-annual report, please see the links below:

The bank will disclose the reviewed financials by the independent external auditor, once they are approved by the Palestine Monetary Authority (PMA).

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About Bank of Palestine (BoP)

Bank of Palestine has a long embedded presence and experience in Palestine dating back to 1960.  The bank is now the largest Palestinian bank with the most widespread branch network in Palestine, a paid up capital of $150 million, and assets of over $2 billion, with more than 1,100 employees serving over 600,000 customers.  Operating as a universal bank, BOP is engaged in retail, corporate, micro and SME, and Diaspora banking operations, with the largest card processing operations in Palestine; BOP is the sole agent for issuing and acquiring Visa and MasterCard in Palestine with over 5,000 Point of Sale merchant terminals nationwide.  Recently, BOP has also been playing a leading role in some of the largest project finance loan syndications in Palestine. Bank of Palestine adopts a holistic sustainability strategy and has been the leader in Corporate Social Responsibility (CSR) in Palestine dedicating 5% of its net profit to community development.

Bank of Palestine's stock (PEX: BOP) has been listed on the Palestine Exchange (PEX) since 2005. It is among the market's blue chip stocks, and represents around 15% of total PEX market capitalization.

For more information, please contact:
Raya Sbitany -- Head of Investor Relations
Raya.sbitany@bankofpalestine.com
Mobile: +972-56-979-3900
http://www.bop-ir.com