For Immediate Release
Bank of Palestine Group
February 15, 2022
FULL YEAR 2021 PRELIMINARY RESULTS AND KEY METRICS | ||||||||
ROA | ROE | CAR | OPERATING | LOANS TO | ||||
C/I% | ||||||||
0.87% | 11.18% | 15.12% | DEPOSITS% | |||||
58.83% | ||||||||
65.09% | ||||||||
NET REVENUE (GROSS PROFIT) OF $262.2 MILLION
NET PROFIT OF $56.5 MILLION
EARNINGS PER SHARE OF $0.23
Key Messages & Highlights
- Revenues increased by 18.0% from USD 222.2 million for the YE 2020 to USD 262.2 million for the YE 2021.
- Profit before tax increased by 110.3% from USD 40.2 million for the YE 2020 to USD 84.4 million for the YE 2021.
- There was a significant gain in foreign exchange due to the increase in the volume of transactions driven by competitive prices and digital channels trading.
- Furthermore, improved gains were realized from investment portfolio due to better dividends payout and the recovery of stock exchanges in the region.
- Better control of operating expenses and enhanced collection process contributed to higher profits.
- Enhanced collection and follow-up processes in addition to better NPL management also resulted in improved cost of risk and lower NPL ratio.
- Cost to income ratio decreased from 80.9% for the YE 2020 to 67.8% for the YE 2021.
- Enhanced performance of BOP subsidiaries; Palpay and Al-Wasata with a solid growth for Arab Islamic Bank.
- Net profit increased by 152.1% from USD 22.4 million for the YE 2020 compared to USD 56.5 million for the YE 2021.
- Return on Equity increased from 5.24% at the end of 2020 to 11.18% at the end of 2021.
- Earnings per share increased from 0.10 at the end of 2020 to 0.23 at the end of 2021.
- Capital adequacy ratio reached its highest levels in BOP Group history from 14.24% at the end of 2020 to 15.12% at the end of 2021.
- Total assets increased by 12.0% from USD 5.8 billion at the end of 2020 to USD 6.5 billion at the end of 2021.
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- Net Loans increased by 5.7% from USD 3.3 billion at the end of 2020 to USD 3.5 billion at the end of 2021.
- Customer deposits increased by 9.7 % from USD 4.8 billion at the end of 2020 to USD 5.3 billion at the end of 2021.
- Total shareholders' equity increased by 14.5% from USD 433.5 million at the end of 2020 to USD 496.2 million at the end of 2021.
Other Messages during 2021
- The Bank increased its paid up capital to USD 217.4 million through a private placement with FISEA - the AFD Group Investment Vehicle advised by Proparco. FISEA is now a strategic partnership and shareholder of Bank of Palestine with an ownership of 3.34%. This partnership includes a technical assistance program to boost BOP's initiatives to invest in sustainability.
- Bank of Palestine has won the World's Best Trade Finance Providers 2021 Country Award by Global Finance.
- Bank of Palestine signed a trade facilitation program with EBRD with a USD 5 million limit to support local exporters and importers while expanding its correspondent banking network.
- BOP Group closed the year 2021 with a thrust in sustainability that would be reflected on all its operations, engagements and relations.
Ramallah, Palestine February 15, 2022- Bank of Palestine Group (BoP) announced its financial results reporting net profit for the year ended 2021 of USD 56.5 million and revenues of USD 262.2 million compared to net profit of USD 22.4 million and gross profit of USD 222.2 million for the year ended 2020. Total assets increased to USD 6.5 billion compared with USD 5.8 billion at the end of 2020. The Bank's total shareholders' equity also increased to USD 496.2 million compared with USD 433.5 million at the end of 2020.
+152.1 YOY%
Table: Net Profit Bridge
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Chairman and CEO Commentary
Commenting on year 2021's performance, Mr. Hashim Shawa, Bank of Palestine Group Chairman said: "The Group has proved not only resilience and adaptability but also the ability of transforming challenges into opportunities. During the unprecedented times of economic downturn as a result of the global pandemic, we were able to accelerate our plans in digitalization and sustainability to enhance customer satisfaction and grow our stakeholders' value while keeping them safe. 2021 marks as an important milestone in the Group's journey in which we reflected our value-rootedvision through our thrust in sustainability, digital transformation and financial inclusion. The Bank continues to uphold its commitment to growing the economy despite the macroeconomic challenges in Palestine".
Mr. Mahmoud Shawa, the Bank's CEO commented: "Throughout the operating quarters of 2021, the Bank demonstrated growth and strength in its financial performance and capital structure. The Group achieved a net profit of USD 56.5 m which is the highest in its history with solid capital adequacy ratio of 15.12%. On the projects' level, the Bank finalized its segmentation project for better customer service and being more efficient on operations and enhanced its digital banking services to respond to its customers' needs. As part of its financial inclusion and sustainability strategies, the Bank continues to support SMEs, women in business, energy efficiency and renewable energy projects in addition to developing new product programs for Retail & SMEs. As for our employees, the Bank has started a new project in performance evaluation in line with the new organizational restructuring and career development plans. In 2022, we will see the fruits of the implementation of the new digital consumer experience in line with our transformation journey and we will continue to support our society and maintain a clean environment."
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Annex: Bank of Palestine Group Financials
Bank of Palestine
Consolidated Statement of Financial Position
As of December 31, 2021
12/31/2021 | 12/31/2020 | |||
USD | USD | |||
Assets | ||||
Cash and balances with Palestine Monetary Authority | 1,779,579,889 | 1,323,410,056 | ||
Balances and investments at banks and financial institutions | 782,817,995 | 747,858,727 | ||
Financial assets at fair value through profit or loss | 10,253,849 | 18,735,305 | ||
Direct credit facilities and Islamic financing | 3,453,139,478 | 3,266,748,588 | ||
Financial assets at fair value through other comprehensive income | 42,028,862 | 28,559,024 | ||
Financial assets at amortized cost | 229,645,417 | 205,499,230 | ||
Investment in associates and a joint venture | 9,652,487 | 5,946,380 | ||
Investment properties | 25,962,178 | 25,884,919 | ||
Property, plant and equipment and right of use assets | 115,897,814 | 121,430,377 | ||
Projects in progress | 1,366,792 | 2,680,297 | ||
Intangible assets | 14,613,893 | 15,428,395 | ||
Other assets | 43,298,245 | 47,628,690 | ||
Total Assets | 6,508,256,899 | 5,809,809,988 | ||
Liabilities and Equity | ||||
Liabilities | ||||
Palestine Monetary Authority's deposits | 242,439,107 | 168,347,302 | ||
Banks and financial institutions' deposits | 120,061,868 | 82,088,201 | ||
Customers' deposits | 5,013,697,756 | 4,580,935,374 | ||
Cash margins | 291,588,276 | 253,088,880 | ||
Subordinated loan | 72,500,000 | 75,000,000 | ||
Loans and borrowings | 48,442,500 | 27,636,180 | ||
Istidama loans from Palestine Monetary Authority | 22,307,552 | 9,134,926 | ||
Lease liabilities | 31,900,160 | 33,453,914 | ||
Sundry provisions | 50,983,323 | 48,851,375 | ||
Taxes provisions | 21,086,957 | 4,610,652 | ||
Other liabilities | 97,067,400 | 93,142,513 | ||
Total Liabilities | 6,012,074,899 | 5,376,289,317 | ||
Equity | ||||
Paid-in share capital | 217,433,527 | 208,080,000 | ||
Additional paid-in capital | 29,575,688 | 24,848,415 | ||
Statutory reserve | 61,896,623 | 56,970,341 | ||
Voluntarily reserve | 246,361 | 246,361 | ||
General banking risks reserve | 10,311,877 | 10,311,877 | ||
Pro-cyclicality reserve | 40,000,000 | 40,000,000 | ||
Fair value reserve | (1,888,233) | (4,999,792) | ||
Retained earnings | 77,729,642 | 43,763,159 | ||
Total equity holders of the Bank | 435,305,485 | 379,220,361 | ||
Non-controlling interests | 60,876,515 | 54,300,310 | ||
Total Equity | 496,182,000 | 433,520,671 | ||
Total Liabilities and Equity | 6,508,256,899 | 5,809,809,988 |
Bank of Palestine
Consolidated Income Statement
For the year ended December 31, 2021
2021 | 2020 | |||
USD | USD | |||
Interest Income | 166,252,374 | 161,289,379 | ||
Interest Expenses | (38,906,250) | (42,650,597) | ||
Net Interest Income | 127,346,124 | 118,638,782 | ||
Net financing and investment income | 50,166,699 | 35,662,682 | ||
Net commissions income | 46,085,241 | 43,156,485 | ||
Net Interest and Commissions Income | 223,598,064 | 197,457,949 | ||
Foreign Currency Gain | 22,113,144 | 16,745,839 | ||
Net gains from financial assets portfolio | 7,951,831 | 611,729 | ||
Change in fair value of investment properties | (285,740) | 48,050 | ||
Bank's share of results of associates and a joint venture | 441,850 | 442,861 | ||
Other revenues | 8,396,247 | 6,941,015 | ||
Gross Profit | 262,215,396 | 222,247,443 | ||
Expenses | ||||
Personnel Expenses | (82,647,551) | (73,595,572) | ||
Other operating expenses | (51,622,367) | (48,620,126) | ||
Depreciation and amortization | (17,927,102) | (18,858,916) | ||
Provision for expected credit losses, net | (23,496,115) | (39,457,786) | ||
Credit facilities not previously provided for and written off | (2,052,766) | (1,532,623) | ||
Palestine Monetary Authority's fines | (20,000) | (22,052) | ||
Total Expenses | (177,765,901) | (182,087,075) | ||
Profit before taxes | 84,449,495 | 40,160,368 | ||
Tax expense | (27,945,169) | (17,748,220) | ||
Profit after taxes | 56,504,326 | 22,412,148 | ||
Comprehensive Income Statement | ||||
For the year ended December 31, 2021 | ||||
2021 | 2020 | |||
USD | USD | |||
Profit for the period | 56,504,326 | 22,412,148 | ||
Comprehensive Income Items: | ||||
Change in the fair value of financial assets | 3,678,291 | (1,322,007) | ||
Total Other Comprehensive Income items | 3,678,291 | (1,322,007) | ||
Total comprehensive income for the period | 60,182,617 | 21,090,141 |
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Bank of Palestine plc published this content on 17 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 February 2022 10:45:04 UTC.