The regular and extraordinary General Assembly meetings of Bank of Palestine were held on April 5, 2023, at the bank's headquarters in Ramallah, with video conference participation by shareholders in Gaza. Attendance was by Hashem Shawa, Chairman of the Board of Bank of Palestine Group; Mahmoud Shawa, General Manager; members of the Board of Directors; auditors from the Ministry of National Economy; representatives from external auditors; the Palestinian Monetary Authority; the Palestinian Capital Market Authority; and a large number of shareholders, with a quorum of about 97.76%.
Present were all the items that were approved during the meeting, the General Assembly of the two meetings. This was to include the Board of Directors' recommendation to distribute a net profit of $29.1 million generated in 2022, equivalent to 13% of the paid-up capital. The approval will be as 10% cash dividends totaling $22,395,858 and free shares of $6,718,757, equivalent to 3% of the paid-up capital. The distribution shall be made to shareholders registered in the Palestine Exchange depository center as of Tuesday, April 4, 2023, which will increase the bank's capital from $223,958,577 to $230,705,144. It also announced the beginning of the distribution of the profits to shareholders' accounts, according to a method it will declare later.
General Assembly also ratified the agenda of the extraordinary meeting, including the approval of an investment by the Japan International Cooperation Agency of $30 million into the first additional capital tranche of Bank of Palestine.
In this respect, Hashem Shawa, Chairman of the Board, congratulated the Arab and Islamic nations, the shareholders of the bank, the employees and clients, as well as the people of Palestine on the occasion of the holy month of Ramadan. He added that he is proud of the achievements realized by Bank of Palestine and its group, through a comprehensive and sustainable growth strategy that targets all segments of society and various sectors of the economy. Accordingly, this is the role this strategy has played for the growth witnessed by the bank, along with the project for business specialization-which represents one of the basic pillars for the bank's progress. He also reiterated the continued focus on the further development of excellent services, better efficiency, and emphasis on digital service development for all clients.
Shawa, concerning the Bank's support for small and medium enterprises, assured the continued effort to obtain the necessary financing for them through programs prepared and with important partnerships with international and Arab financial institutions for development that have so far financed more than 40,000 SMEs, contributing to creating more than 150,000 jobs. Projects that the bank has also financed are in line with the criteria of financial inclusion: projects for women, young entrepreneurs, people with disabilities, green projects, and renewable energy.
Shawa also pointed out that the bank is developing its digital operation internally and externally, in line with the strategy for digital transformation. It also believes in the importance of banking digitalization to develop its operations and services that meet clients' needs in different segments. Accordingly, the strategy of digital transformation at the bank includes the development of electronic channels and the improvement of digital services, along with attracting expertise in the field. Moreover, the bank has been in a better position to foster a friendly milieu of entrepreneurship and technology by reaching out to youthful innovators and entrepreneurs through an incubator called Intersect and its Innovation Fund.
About its social role, Shawa said, "We are living in Palestine under difficult circumstances that hit large sectors of our society. Hence, we continue to dedicate the lion's share of our profits towards contributing to supporting various developmental and social spheres like education, health, women, and people with disabilities." He mentioned the latest campaign, through which the bank has donated electronic food vouchers to support 5,000 Palestinian families in the Gaza Strip and the West Bank during the holy month of Ramadan. He said the bank is trying to balance its commitment to the community with its focus on environmental sustainability to secure long-term community, economic, and environmental benefits.
Shawa said he was pleased with the bank's first sustainability report, compiled according to international standards, adding that the bank is committed to accountability and transparency in its relations with the community and natural resources. He regarded these commitments as ethical imperatives that the bank freely chooses to undertake by its values and the aspirations of its customers.
Referring to the bank's performance in 2022, Shawa outlined major results: exceptional growth in all financial indicators - total assets rose to $6.5 billion, customer deposits reached $5.27 billion, credit facilities increased by 3.44% to reach approximately $3.572 billion - while shareholder equity rose to $545.9 million and paid-up capital to $223 million. Net profit rose to $66.6 million, an increase of 18.5%.
Shawa concluded his speech with words of thanks to the shareholders, underlining the commitment to further development of Bank of Palestine, and giving thanks to all the clients who had chosen the bank as their trusted financial institution. He also praised the role of the Palestinian Monetary Authority and regulatory bodies in supporting the financial and economic environment in Palestine, the bank's Board of Directors, executive management, and employees for their hard work under difficult political and economic conditions, focusing on providing the best services to clients.