For Immediate Release
Bank of Palestine Group
May 18th, 2022
FIRST QUARTER 2022 RESULTS AND KEY METRICS | ||||||||
ROA¹ | ROE¹ | CAR | OPERATING | NET LOANS | ||||
C/I% | TO | |||||||
1.09% | 13.67% | 15.19% | DEPOSITS% | |||||
54.46% | ||||||||
65.63% | ||||||||
NET REVENUE (GROSS PROFIT) OF $70.5 MILLION
NET PROFIT OF $17.6 MILLION
EARNINGS PER SHARE OF $0.072
1Key Messages & Highlights
- Revenues increased by 14.7% from USD 61.5 million for Q1 2021 to USD 70.5 million for Q1 2022.
- Profit before tax increased by 53.0% from USD 17.3 million for Q1 2021 to USD 26.5 million for Q1 2022.
- Continuance of better control of operating expenses 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.
- Better commission performance of 24.2% compared to the same period prior year due to increased business activities.
- Cost to income ratio decreased from 67.74% for Q1 2021 to 62.4% for Q1 2022.
- Net profit increased by 55.1% from USD 11.3 million for Q1 2021 compared to USD 17.6 million for Q2 2022.
- Return on Equity increased from 11.34% in Q1 2021 to 13.7% in Q1 2022.
- Earnings per share increased from 0.048 for Q1 2021 to 0.072 for Q1 2022.
- Capital adequacy ratio reached 15.19% in Q1 2022.
- Flat assets with a slight change by -0.4% from USD 6.51 billion at the end of 2021 to USD 6.48 billion at the end of the first quarter 2022.
- Net Loans increased by 1.1% from USD 3.45 billion at the end of 2021 to USD 3.49 billion at the end of the first quarter 2022.
- Customer deposits increased by 0.22% from USD 5.31 billion at the end of 2021 to USD 5.32 billion at the end of the first quarter 2022.
1 ROA and ROE are presented on an annual basis.
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- Total shareholders' equity increased by 3.7% from USD 496.1 million at the end of 2021 to USD 514.6 million at the end of the first quarter 2022.
Ramallah, Palestine May 18th 2022- Bank of Palestine Group (BoP) announced its financial results reporting net profit for the three-month period ended 2022 of USD 17.6 million and revenues of USD
70.5 million compared to net profit of USD 11.3 million and gross profit of USD 61.5 million for the same period ended 2021. Flat assets with slight change to USD 6.48 billion compared with USD 6.51 billion at the end of 2021. The Bank's total shareholders' equity also increased to USD 514.6 million compared with USD 496.1 million at the end of 2021.
+55.1 QoQ%
Table: Net Profit Bridge
Chairman and CEO Commentary
Mr. Hashim Shawa, Bank of Palestine Group Chairman said: "We are proud of Bank of Palestine's Group's results for the first quarter of 2022 demonstrating growth and strength in its capital structure and financial performance. While we are observing global and local risks and uncertainties in 2022, we continue the implementation of our strategies in sustainability and digitization, cognizant of our responsibilities towards our stakeholders. Our risk mitigation strategies coupled with our commitment to growing the economy will remain our dual approach moving ahead".
Commenting on the results of the first quarter of 2022 Mr. Mahmoud Shawa, the Bank's CEO commented: "The Group's financial results and the growth in net profits reflect both improved efficiencies as well as the increase in business activities. The Group achieved a net profit of USD 17.6 m which is the highest quarterly profit in its history with solid capital adequacy ratio of 15.19%.
We continue providing our clients with enhanced and up-to date digital banking services as well as employing our financial inclusion and sustainability strategies in lending to women, youth and disabled. The Bank continues to support SMEs, energy efficiency and renewable energy projects in addition to developing new product programs for Retail & SMEs. Furthermore, the Bank also is focused on growing the business banking portfolio in tandem with additional demand by corporates for finance as a result of economic recovery post COVID-19 ramifications."
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Annex: Bank of Palestine Group Financials
Bank of Palestine
Consolidated Statement of Financial Position
As of March 31, 2022
3/31/2022 | 12/31/2021 | |||
USD | USD | |||
Assets | ||||
Cash and balances with Palestine Monetary Authority | 1,814,154,000 | 1,779,579,889 | ||
Balances and investments at banks and financial institutions | 674,188,026 | 782,230,313 | ||
Financial assets at fair value through profit or loss | 10,903,287 | 10,253,849 | ||
Direct credit facilities and Islamic financing | 3,489,477,924 | 3,453,207,160 | ||
Financial assets at fair value through other comprehensive income | 46,591,724 | 42,255,262 | ||
Financial assets at amortized cost | 236,721,327 | 228,845,417 | ||
Investment in associates and a joint venture | 9,810,558 | 9,671,052 | ||
Investment properties | 26,142,678 | 25,962,178 | ||
Property, plant and equipment and right of use assets | 113,125,398 | 115,897,814 | ||
Projects in progress | 1,298,524 | 1,366,792 | ||
Intangible assets | 15,023,588 | 14,613,893 | ||
Other assets | 47,277,647 | 44,338,187 | ||
Total Assets | 6,484,714,681 | 6,508,221,806 | ||
Liabilities and Equity | ||||
Liabilities | ||||
Palestine Monetary Authority's deposits | 196,562,586 | 242,439,107 | ||
Banks and financial institutions' deposits | 107,342,806 | 120,061,868 | ||
Customers' deposits | 4,996,781,440 | 5,013,551,326 | ||
Cash margins | 319,967,892 | 291,588,276 | ||
Subordinated loan | 72,500,000 | 72,500,000 | ||
Loans and borrowings | 55,756,063 | 48,442,500 | ||
Istidama loans from Palestine Monetary Authority | 28,065,083 | 22,307,552 | ||
Lease liabilities | 30,690,893 | 31,900,160 | ||
Sundry provisions | 52,299,472 | 50,983,323 | ||
Taxes provisions | 14,502,370 | 21,492,314 | ||
Other liabilities | 95,612,353 | 96,855,951 | ||
Total Liabilities | 5,970,080,958 | 6,012,122,377 | ||
Equity | ||||
Paid-in share capital | 217,433,527 | 217,433,527 | ||
Additional paid-in capital | 29,575,688 | 29,575,688 | ||
Statutory reserve | 61,883,607 | 61,883,607 | ||
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 | (726,511) | (1,692,549) | ||
Retained earnings | 93,319,789 | 77,612,532 | ||
Total equity holders of the Bank | 452,044,338 | 435,371,043 | ||
Non-controlling interests | 62,589,385 | 60,728,386 | ||
Total Equity | 514,633,723 | 496,099,429 | ||
Total Liabilities and Equity | 6,484,714,681 | 6,508,221,806 | ||
Bank of Palestine
Consolidated Income Statement
For the three-month period ended March 31, 2022
2022 | 2021 | ||
USD | USD | ||
Interest Income | 40,818,153 | 40,593,941 | |
Interest Expenses | (7,441,729) | (10,381,476) | |
Net Interest Income | 33,376,424 | 30,212,465 | |
Net financing and investment income | 13,295,536 | 10,869,936 | |
Net commissions income | 13,282,887 | 10,693,526 | |
Net Interest and Commissions Income | 59,954,847 | 51,775,927 | |
Foreign Currency Gain | 6,090,455 | 6,078,284 | |
Net gains from financial assets portfolio | 1,093,360 | 582,892 | |
Change in fair value of investment properties | - | - | |
Bank's share of results of associates and a joint venture | 139,506 | 113,715 | |
Other revenues | 3,246,781 | 2,913,955 | |
Gross Profit | 70,524,949 | 61,464,773 | |
Expenses | |||
Personnel Expenses | (20,435,671) | (19,585,947) | |
Other operating expenses | (12,929,226) | (12,250,180) | |
Depreciation and amortization | (4,497,940) | (4,691,745) | |
Provision for expected credit losses, net | (5,592,440) | (7,018,778) | |
Credit facilities not previously provided for and written off | (523,122) | (577,465) | |
Palestine Monetary Authority's fines | (25,000) | (10,000) | |
Total Expenses | (44,003,399) | (44,134,115) | |
Profit before taxes | 26,521,550 | 17,330,658 | |
Tax expense | (8,929,801) | (5,991,600) | |
Profit after taxes | 17,591,749 | 11,339,058 | |
Comprehensive Income Statement | |||
For the three-month period ended March 31, 2022 | |||
2022 | 2021 | ||
USD | USD | ||
Profit for the period | 17,591,749 | 11,339,058 | |
Comprehensive Income Items: | |||
Change in the fair value of financial assets | 942,545 | 1,204,449 | |
Total Other Comprehensive Income items | 942,545 | 1,204,449 | |
Total comprehensive income for the period | 18,534,294 | 12,543,507 | |
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For the full set of financial statements, please visit our website. For more information, please contact:
Kamel Husseini
Chief Strategic Relations & Engagements Officer
Tel: +970 2 2946700 | Ext: 9114 | Fax: +970 2 2964703 Mobile: +970 599 205630|
Email: kamel.husseini@bankofpalestine.com|www.bankofpalestine.com
Catherine Halteh
Head of Investor Relations
Tel: +970 2 2946700 | Ext: 3465| Fax: +970 2 2955236 Mobile: +970 599 390429|
Email: catherine.halteh@bop.ps|www.bankofpalestine.com
Date: May 18th, 2022
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Bank of Palestine plc published this content on 18 May 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 June 2022 09:51:01 UTC.