Bank of Palestine Company Profile

Background

Bank of Palestine (BoP), established in 1960, is the largest financial institution in the Palestinian territories. With a mission to enhance banking services, finance diverse projects, and meet the financial needs of various social and economic sectors, BoP has become a cornerstone of Palestine's banking industry. The bank operates the most extensive network of branches, offices, and ATMs in the region, serving over 850,000 customers. BoP is committed to contributing to the nation's development and staying abreast of technological advancements.

Key Strategic Focus

BoP's strategic objectives include:

Community Development: Actively participating in building and developing the Palestinian community.

Innovative Services: Continuously creating new programs and services that respond to customer needs.

Expansion: Growing its business locally, regionally, and globally.

Performance Enhancement: Developing and promoting administrative and professional performance levels.

Market Share Growth: Achieving a steady increase in its share of the Palestinian banking market.

Quality Services: Providing high-quality financial and banking services with optimal performance.

Technological Advancement: Remaining abreast of global technological advancements to serve customers' best interests.

Financials and Funding

As of the first quarter of 2023, BoP reported a net profit of $20.6 million, marking a 17% increase compared to the same period in the previous year. The bank's assets exceeded $6.5 billion, reflecting its robust financial position. In 2022, BoP's revenues approached $300 million, up 14% year-on-year, with net profits reaching $66.6 million, an 18.5% increase.

In May 2023, BoP signed a $65 million financing agreement with a consortium comprising the International Finance Corporation (IFC), PROPARCO (the investment arm of the French Development Agency), and the SANAD Fund for MSMEs. This funding aims to support the bank's programs focused on small and medium enterprises (SMEs) in anticipation of economic recovery.

Technological Platform and Innovation

BoP has developed several subsidiaries and platforms to enhance its service offerings:

PalPay: Established in 2010, PalPay is a leading electronic payment platform in Palestine, facilitating electronic payments and collections for various services. It has signed contracts with over 65 companies and service providers.

Al-Wasata Securities: Founded in 2005, Al-Wasata serves as BoP's investment arm, providing brokerage services, managing financial portfolios, and offering financial investments. It has become a significant player in attracting new investors to the Palestinian market.

Arab Islamic Bank: Established in 1995, this subsidiary offers banking and investment activities in accordance with Islamic Sharia, aiming to foster Islamic banking and promote the Palestinian economy.

Intersect Innovation Hub: Operating in five Palestinian cities, this startup incubator enhances the entrepreneurial ecosystem at all levels.

Leadership Team

Hashim Shawa: Chairman of the Board since 2010, Shawa has been instrumental in steering BoP's strategic direction and growth.

Mamdouh Shawa: General Manager, overseeing the bank's operations and implementing strategic initiatives.

Mahmoud Shawa: Director of Finance/CFO, responsible for the bank's financial management and reporting.

Leadership Changes

In April 2022, BoP appointed three new board members: Lana Abdul Hadi, Lama Waleed Saba Kanaan, and Linda Abdul Karim Nasri Sayegh. These appointments reflect the bank's commitment to enhancing governance and diversity within its leadership.

Competitor Profile

Market Insights and Dynamics

The Palestinian banking sector comprises 13 banks—six local and six foreign—operating across the West Bank, East Jerusalem, and the Gaza Strip. The market serves a population of approximately 5.4 million, with a GDP of around $19 billion. As of May 2023, the financial inclusion rate reached 50.9%, indicating significant growth potential.

Competitor Analysis

Palestine Islamic Bank: A key competitor offering Sharia-compliant banking services, with 43 branches across the region.

Bank of Jordan: Another significant player with 43 branches, providing a range of financial services in the Palestinian territories.

Strategic Collaborations and Partnerships

In May 2023, BoP partnered with Proparco and FISEA+ to support entrepreneurs and the digital economy in Palestine. This collaboration includes technical assistance subsidies totaling €1.34 million, enabling BoP to back its Intersect Innovation Hub for local startups and improve access for Palestinian SMEs to essential digital tools.

Operational Insights

BoP's extensive branch network, diverse service offerings, and strategic partnerships position it as a leader in the Palestinian banking sector. Its subsidiaries, such as PalPay and Al-Wasata Securities, provide complementary services that enhance its market position. The bank's focus on technological innovation and financial inclusion further differentiates it from competitors.