BOP General Assembly held its ordinary annual meeting on Friday, 25 April 2014 at the General Management HQ in the city of Ramallah and through video conference with the BOP General Management in Gaza. The meeting was attended by Chairman and General Manager Hashim Al-Shawa, members of the Board of Directors, companies’ controllers at the Ministry of National Economy, representatives of the external auditor of the financial statements, PEX, PMA, PCMA, and stakeholders, businessmen, economists and the media.
The agenda for the meeting included the following items: (1) discussion and approval of the report of the Board of Directors; (2) discussion and approval of the financial statements of 2013; (3) discussion of the recommendations made by the Board with regard to the distribution of profits to shareholders; (4) approval of the auditors’ report; (5) acquittal of the Board; (6) election of a new Board. The session started its proceedings after the verification of the quorum by a majority of 58.85 percent of BOP shareholders.
In his opening speech, Al-Shawa gave a brief presentation on the achievements of BOP for the past year. BOP continued to perform strongly achieving a net profit of USD 40.4 million in 2013 at the rate of 5.54 percent over 2012. Total assets index rose to more than USD 2.35 billion maintaining BOP position as the largest Palestinian company in terms of financial assets. In addition, shareholders rights were estimated at USD 252 million by the end of 2013 achieving a rise of 14.05%.
Al-Shawa pointed to the growth in BOP market share of credit facilities for the Palestinian banking sector up to 24.63 percent, while BOP market share of deposits reached 21 percent. The value of credit facilities portfolio rose up to USD 1.1 billion and likewise the value of deposits up to USD 1.75 billion by the end of 2013.
Believing in the importance of long-term investment in Palestine, Al-Shawa stated BOP has completed its expansion strategy to provide banking services and products to all segments of the Palestinian society throughout Palestine including rural and remote areas. BOP owns the largest banking network in Palestine consisting of 50 branches and offices.
In 2013 BOP opened two buildings housing two new branches in Bethlehem and Jericho. Al-Shawa stressed that the buildings are not merely designed to provide banking services to the public but to provide special premises where companies and merchants can receive special services. Furthermore, BOP has launched an expansion project for its branches and offices in order to cope with the increase in the clients’ base and provide them with high-quality services. By the end of 2013, BOP has completed furnishing and equipping two new offices in Bidya village in Salfit governorate, and Bani Suhayla village in Khan Younis. BOP is also working on furnishing and equipping 5 new branches and offices which are expected to open this year in different locations.
To save time and effort for Palestinian citizens, Al-Shawa spoke about BOP founding of PalPay electronic payment system. The activities of the electronic payment of electricity and telecommunication bills, charging of mobile phones and others rose up to approximately 8 million activities in 2013.
Moreover, Al-Shawa said BOP has received a license from the PMA to open a representation office for the bank in Dubai, UAE, where about 250,000 Palestinians reside. The office, expected to open at the end of this year, will act as a contact point with the Palestinians living in the Gulf countries.
Keeping abreast of the rapid development and innovation in financial products and instruments, Al-Shawa said BOP is creating new programs that would meet the needs of all clients. BOP has launched new services, including CashCard, and activated special service programs such as EasyLife cards. Furthermore, BOP has developed partnerships with several Palestinian banks to provide clients with credit card issuance services.
Al-Shawa expressed pride in BOP for receiving excellence awards as the “Best Bank in Palestine” as classified by prominent international organizations like Euromoney, Global Finance the Banker, and others. BOP is also one of the three banks in the Middle East and Africa that have been nominated by the Financial Times magazine and IFC to receive the title of the “Sustainable Bank.”
In 2013, Al-Shawa went on, about USD 2.5 million has been allocated to corporate social responsibility distributed among different sectors, including health, education, culture, and humanitarian endeavors. Al-Shawa pointed out that BOP has been instrumental in providing all possible aid to the Palestinian society in light of difficult circumstances resulting from the volatile political situation and natural disasters. BOP undertook the distribution of humanitarian relief and maintenance of homes affected by the flood last year. The bank continued to support ‘My Future” program targeting children of martyrs and ‘Gaza in Our hearts” program for the support of the health sector. BOP has also contributed to aiding Palestinian in the diaspora and sent out relief campaign to Palestinian refugees in Yarmouk camp.
At the end of his speech, Al-Shawa extended gratitude and appreciation to shareholders for their support and assistance to BOP, and to the PMA. PCMA and BOP staff for their dedication and efforts toward enhancing the organizational framework of the financial sector and contributing to the development of Palestinian national economy.
During the meeting, the General Assembly approved the recommendation made by the Board of Directors to distribute USD 22.5 million of the profit earned last year to shareholders, i.e. 14.99 percent of the nominal value per share. The allocated amount was divided into two batches, the first in the form of free shares equivalent to USD 10 million at a ratio of 6.66 percent of the nominal value, bringing BOP paid-up capital from USD 150 million up to USD 160 million. The other batch has been approved as cash dividends for the value of USD 12.5 million which is equivalent to 8.33 percent of the nominal value. Shareholders registered in PEX on Thursday 24 April 2014 are entitled to the distribution of the profits each according to his share in the bank’s capital. BOP will start distributing cash dividends in all its branches starting Sunday 27 April 2014.
Just before the conclusion of the meeting and after responding to the interjection of shareholders, the General Assembly approved the reports of the Board of Directors and external auditors Ernst & Young. The Assembly also approved the distribution of dividends and the election of a new Board. The new Board has the following members on it: Hashim Al-Shawa, Mamoun Abu Shahla, Maher Farah, Hani Nijem, Faisal Al-Shawa, Mohammad Nafez Hirbawi, Tareq Al-Shakaa, John Khoury, Tareq Al-Aggad, Lana Abu Hijleh and Abdallah Ghanem. Finally, the General Assembly has delegated the Board to contract the financial auditor for 2014 and has acquitted the members of the Board of 2013.