Asma Marzouq – Palestine Economy Portal                Translated by: Tamara Barakat

During the past nine months of this year, all Palestinian banks have witnessed a growth in their profits. Consequently, the banking and financial services sector was the most successful in the Palestinian stock market. This sector includes the seven local banks and the Palestine Exchange Company. 

Data published by companies listed in the Palestine Exchange on the first nine months of 2015 reveal that the eight companies in the banking and financial services sector have made around $59 million in profits.

According to the Exchange’s data, the banking sector is considered to be the best and most growing sector. The services sector, however, was the worst in terms of growth since only a third of its companies – four companies – has made profits, while its remaining eight companies incurred losses.

The Bank of Palestine was the most successful among the profiting companies in the banking sector, for it dominated over more than half of the sector’s profits. Its profits exceeded $33,300,000.

There was a growth in the profits of all banks, except those of the Palestine Exchange Company, whose profits declined by 48% in comparison with the profits it made last year during this same period, which reached around $142,000.

As for the two Islamic Banks, they have gained the fourth and fifth highest profits in the sector. The Palestinian Islamic Bank made over $7,658,000 in profits and achieved the highest growth percentage among banks, exceeding by 46% its growth last year. The profits of the Arab Islamic Bank reached $4,057,000, and its growth percentage was 22%.

Dr. Nael Mousa, an instructor of Economics at Birzeit University, attributes the continuous growth among Palestinian banks to the increase in loan borrowing and to the measures and regulations that decrease the level of risk placed on banks and increase the loan repayment percentage.

Operating banks in Palestine include seven local banks, two of which are Islamic and five are commercial, eight foreign banks, seven Jordanian banks, and an Egyptian bank. The British “HSBC” bank has announced on Nov. 2, 2015, that it intends to close its branch in Palestine at the beginning of the upcoming year.

The overall profits of operating banks in Palestine, both local and foreign, reached around $105 million during the first nine months of 2015, according to the statistics of the Association of Banks in Palestine.