Chairman’s message

Brothers and sisters distinguished shareholders,

May the peace, mercy and blessings of God be upon you

The beginning of 2024 was an expected continuation of the end of 2023. The brutal war on the Gaza Strip continued to affect the humanitarian and economic situations and living conditions in both Gaza and the West Bank. The severity of the impact varied based on the brutality of the aggression. PIB therefore had to hedge against the evolving situation by allocating increasing amounts in anticipation of the expected losses caused by the deteriorating situation, the near-total failure to pay installments due in the Gaza Strip, the PMA's instructions to postpone installment payments for the same reasons, the declining capacity to repay debt in the West Bank due to the tightening of the blockade, the growing intensity of military operations there, and the resulting deterioration of economic and financial activities. For these reasons – and in spite of them – PIB redoubled its efforts to develop technological products and tools to allow customers to complete their transactions, transfers, and payments remotely, without resorting to cash and paper transactions. PIB was among the first to launch iBURAQ and E-SADAD services via the Islami Mobile application, in compliance with the instructions of the Palestine Monetary Authority. This significantly allowed its customers, in the West Bank in general and in Gaza specifically, to carry out their transactions. It also developed an automated system for managing Hajj payments, launched a deposit card for corporate and retail clients and a World Elite Mastercard. It provided electronic payment services via a smart payment ring and bracelet, as well as a completely new and updated version of the Islami Mobile application. It completed the update of its existing banking system, upgrading it to the latest version, launched modern investment management systems, and deployed state-of-the-art ATMs that include advanced and new services for its customers.

In terms of social responsibility, PIB continued to support the Palestinian community, particularly in the Gaza Strip, despite the challenges facing all its planned community projects due to the prevailing conditions on the ground in Gaza in particular and the West Bank in general.

Despite all the challenges facing the Palestinian economy, which intensified in 2024, PIB took all the necessary precautions and managed to demonstrate its financial strength and stability. Its assets grew by approximately 2% compared to the previous year, amounting to nearly $30 million. It was able to maintain deposits at the same level of $1.336 billion. The net direct credit financing also decreased by 4.53% from $985 million in 2023 to approximately $940 million in 2024, while net profit after tax amounted to $1.09 million. The decrease in profits and financing can be attributed to the aggression on the Gaza Strip and the resulting additional allocations. The return on equity was 0.68%, while the return on assets amounted to 0.06%.

Such facts attest to PIB’s financial strength and robustness. Its entire executive management is making exceptional efforts to develop banking operations and services, utilizing the latest technologies, while simultaneously ensuring compliance with Islamic banking rules under the guidance and oversight of the bank's Sharia Supervisory Board. The Sharia Supervisory Board spares no effort in monitoring compliance with the rules and constantly educates the Palestinian public about Islamic banking.

In conclusion, I would like to thank the members of the Board of Directors for their continuous efforts, through the Board and its various committees, to monitor PIB’s operations and oversee the implementation of its policies, to protect our financial stability and development in service of the Palestinian community.

God grants success,

May the Peace and Blessings of Allah be with you,

Maher Masri 

Chairman of the Board of Directors

About PIB

Overview

The Palestine Islamic Bank Public Joint-Stock Company was established in 1995, and the bank started its banking activity in early 1997. Its authorized capital is 100 million shares, with a nominal value of one US dollar per share. Since its establishment, PIB’s paid-in capital has been increased several times, most recently in 2023, where it was increased to 100 million US Dollars from 90 million US Dollars in 2022.

The Bank engages in banking, financial, commercial and investment activities in accordance with the provisions of Islamic Sharia, through 43 branches and offices and 103 ATMs throughout Palestine. This attests to its reputation as the largest Islamic banking network in Palestine and is consistent with its vision to be the leading Palestinian Islamic bank that responds to the needs and requirements of its customers.

The bank constantly seeks to meet the financial needs of all segments of the local community. It spares no effort to achieve its mission with excellence by providing safe and modern banking and investment solutions which are consistent with the provisions of Islamic Sharia. It also works on building sustainable partnerships with different stakeholders and with the community while focusing on developing and attracting highly qualified human resources to provide the best Islamic banking services to customers and innovate products meeting their ambitions to ensure they enjoy a distinctive banking experience.

The bank operates according to a well-studied and systematic plan for digital transformation. It launched a number of digital services and products and electronic payment solutions. As a result of these endeavors, PIB received the “Best Islamic Bank in Palestine” Award for 2024 by the slamic Finance News Magazine "IFN" across several categories.

PIB believes in its role in contributing to sustainable development, by implementing annual projects with a positive and sustainable impact, especially in the health and education sectors. It is also making efforts to protect the environment by adopting a solar energy system in several of its branches and offices. This helps in reducing harmful gas emissions. In parallel with these efforts, PIB was the first Palestinian Islamic bank to join the UN Global Compact, an UN-led initiative to encourage companies from all over the world to adopt sustainable and socially responsible policies.

Vision

To be the leading Palestinian bank in Islamic finance and investment activities and services with a modern and developed perspective.

Mission

Excellence in providing modern and safe banking and investment solutions in accordance with the provisions of Islamic Shari’a, and to work towards sustainable partnerships with stakeholders and the community.

Values

• Integrity and transparency
• Commitment and professionalism
• Justice and honesty
• Modernity and excellence
• Reliability and loyalty

Strategic goals

Leading in the Palestinian banking sector, through:

• The promotion of effective and quality business development activities
• The development of a supportive work environment and the promotion of a sense of belonging
• Leadership in digital transformation
• The reduction of business-associated risks
• The continuation of a sustainable community partnership

Awards

Palestine Islamic Bank has been voted:

Our Banking Network

The Bank is considered the widest Islamic banking network in Palestine, whereas it has worked on expanding this network since its incorporation that being in conformity with the strategy of financial inclusion which the Palestinian Monetary Authority launched, believing in citizens’ right to enjoy banking services around the country.

43 branches and offices at your service

• 24 branches
• 19 offices
• 103 ATMs

Highlights of 2024

Signing a Memorandum of Understanding with the Dubai Multi Commodities Centre (DMCC)

As part of its efforts to promote Islamic finance in Palestine through innovative financial solutions, PIB signed a Memorandum of Understanding with the Dubai Multi Commodities Centre (DMCC).

The MoU was signed at DMCC’s headquarters in Dubai in the presence of PIB’s General Manager, Dr. Imad Al-Sadi; Mr. Patrick Gata, representing DMCC; Mr. Bashar Yassin, Director General of the Association of Banks in Palestine; and Mr. Amjad Nasr, Islamic Finance Advisor. This agreement is part of the efforts to strengthen PIB’s regional and international partnerships, to promote Islamic finance in Palestine.

Signing "Settlement Bank" agreements with several entities under the iBURAQ and E-SADAD systems

PIB signed a number of "Settlement Bank" agreements with local companies and institutions. Under such agreements, PIB will settle the entities' accounts in the national system for the display and payment of bills (E-SADAD) and the iBURAQ instant payment system. These entities include Takaful Insurance Company, Al-Zaytouna Islamic Finance, Hebron Electricity, and a number of municipalities. Such agreements contribute to strengthening PIB’s relationship with these entities and provide new opportunities for future cooperation. These efforts are part of PIB’s plan to promote electronic payment solutions as an alternative to traditional payment methods, making them easier and saving time and effort.

Launch of the "Tawfeer Kareem...Guaranteed Winning" Campaign

PIB launched the "Tawfeer Kareem... Guaranteed Winning" savings account campaign as part of its efforts to promote a culture of saving in the community and encourage customers to open savings accounts or grow their existing accounts by offering a unique package of instant gifts and cash prizes.

The campaign, which was on during the first quarter of 2025, included weekly cash prize draws for three winners, each worth NIS 5,000, and special instant gifts upon opening a savings account or upon making a deposit into an existing savings account, in accordance with the campaign's terms and conditions.

Launching the Central Archives Project

Maintaining customers’ privacy and protecting their data is a fundamental pillar of PIB’s operations. During 2024, the Central Archives Project was launched to preserve all of PIB’s documents in modern ways keeping up with current developments and in line with best practices for managing customer information security, confidentiality, and accessibility. This project promotes customer confidence in PIB.

The Central Archives Project is equipped with the latest technologies in electronic archiving, security, and protection, as well as advanced electromechanical systems that ensure it is resistant to fire and humidity, regulate temperature levels, and provide good ventilation. It is also designed to meet the latest specifications for environmentally friendly green buildings and is fully powered by solar energy.

This project will massively improve the quality of stored data, quick access, and secure storage, thereby enhancing support and quick service delivery to customers.

Participation in regional and international conferences

To promote and exchange expertise at the regional and international levels, PIB took part in many conferences on banking and finance in general, and Islamic banking in particular.

In Bahrain, PIB participated in the 22nd Annual AAOIFI Sharia Boards Conference, which took place over two days and included several discussion sessions with senior Sharia scholars, policymakers, decision-makers, and other Islamic finance experts.

At the conference, PIB was represented by the Chairman of the Sharia Supervisory Board, Dr. Alaa Razieh; Sharia Supervisory Board Member, Dr. Ayman Juwailis; Assistant General Manager of Branches, Zayed Shuqair; and Director of the Sharia Audit Unit, Faeq Saima.

PIB also participated in the 2024 AAOIFI Annual Conference on Islamic Banking and Finance, which took place over two days and included several discussions with senior Sharia scholars, policymakers, decision-makers, and other Islamic finance experts.

At the event, PIB was represented by the Chairman of the Sharia Supervisory Board, Dr. Alaa Razia, and Assistant General Manager for Financial and Administrative Affairs, Rami Taha. They took part in the conference along with a number of representatives of global Islamic banking and financial institutions, representatives of regulatory bodies and regional and international figures.

Raising awareness of Islamic banking and PIB’s banking services

PIB continued its efforts to raise awareness of Islamic banking and banking services in general through various means, including by holding dialogues and seminars in various governorates across the country. These seminars explained to the attendees the most prominent Islamic banking concepts and formulas and introduced them to PIB’s banking services and products and new electronic services.

Cooperation agreements with local companies

PIB signed several cooperation agreements with local companies to meet customers’ needs and provide them with exceptional financing services. For example, a cooperation agreement was signed with Al Nabali & Al Faris Company, allowing PIB’s customers to purchase off-plan properties from the company with convenient repayment periods.

This agreement is part of the facilitations that PIB continuously strives to provide to its customers, particularly for real estate purchasing. It provides financing solutions that meet their needs, with convenient repayment periods, and are in compliance with the provisions and principles of Islamic Sharia. It is also part of PIB’s efforts to promote cooperation between the banking and real estate sectors to provide the best services to citizens and achieve economic growth.

Maintaining ISO 9001:2015 Certification

GCL-International has recommended that PIB maintain its ISO 9001:2015 Certification after successfully completing the second round of inspections, which covered its various operations, departments, and branches.

GCL-International (the external auditor, accredited by UKAS) made its recommendation after a meeting held at PIB’s headquarters in Ramallah with the General Manager Dr. Imad Al-Sadi, the executive management, and GCL-Palestine General Manager Eng. Shireen Al-Sayed. The meeting discussed the audit findings and outcomes, as well as the progress made by PIB in implementing international quality standards across its operations and activities.

Encouraging Electronic Payments

As part of PIB’s efforts to encourage customers to adopt electronic payment solutions, including payments by card, several campaigns were launched in 2024 with the aim of reducing the use of cash and opting for advanced financial services. These campaigns include a campaign called "For Every Student", which aims to encourage students to make electronic payments through cash prizes draws and free prepaid and ATM cards.

PIB also launched the "Digital Life Big Wins" campaign to encourage electronic payments through the E-SADAD and iBURAQ services via the Islami Mobile app. The campaign included a draw for 10 cash prizes, each worth double the customer's payment transferred or received via iBURAQ mobile number (using a proxy and selecting the mobile number as a secondary identifier (Alias)) or the payment made via E-SADAD, with a maximum of NIS 2,000 each. In addition, PIB participated in many events aimed at encouraging young people, especially university students, to opt for electronic payment solutions such as ESADAD, iBURAQ, card services, and other digital services.

Responding to the situation in the Gaza Strip

The political and economic repercussions of 2024, particularly the war on Gaza, had a significant impact on the financial outcomes of 2024, due to PIB’s hedging efforts to address them.

Strengthening PIB’s financial position

Despite the difficult circumstances in the Gaza Strip and their impact on PIB’s profitability, the measures taken have strengthened the bank's financial position and stability and increased its ability to respond to such challenges. A strategy was adopted to address them. This can be attributed to the Board of Directors' adherence to best practices in good governance, institutional excellence, and risk management, as well as its proactive plans, which were efficiently implemented by the management. This helped in mitigating existing challenges, overcoming many risks, and enhancing the bank's ability to confront any similar challenges in the future.

Providing services to customers in Gaza

Despite the difficult and dangerous conditions in Gaza, PIB’s staff, to the best of their ability and within available resources, made significant efforts to serve customers. The Deir al-Balah branch formed a continuous work cell to serve customers, despite the damage to other branches and the difficulty in accessing them. Installments were postponed as instructed by the PMA. At the same time, PIB served and assisted customers through digital channels, including the digital call center and provided iBURAQ instant payment and transfer services via the Islami Mobile app. A high-level delegation from the bank also made several visits to customers, particularly corporate clients in Egypt, to help them sort out their financial obligations and overcome this ordeal.

Relief for the displaced

Over the past years, PIB has been an effective contributor that served and supported the people of Gaza. It made a tangible impact during war, by providing relief, particularly for the displaced in shelters. However, the situation on the ground prevented the implementation of many other projects, which were part of a plan for a series of relief interventions that will be implemented over the coming period.

Checking on employees and assisting them

As part of its duty to its employees in the Gaza Strip, PIB checked in on them and their families, especially those forced to flee their homes, allowing them to reside on a plot of land it owns in the Al-Zawayda area in central Gaza.

PIB also continued to pay salaries and all other benefits to its employees in Gaza and the West Bank. Meanwhile, its Social Committee played an exceptional role in providing urgent assistance to colleagues in Gaza to help them overcome the difficult circumstances they were experiencing, a role that emphasized the cohesion and solidarity of the PIB family.

Best Islamic Bank in Palestine Award in several fields

In recognition of its achievements in 2024 and its launch of innovative new products and services that are compliant with Islamic Sharia, PIB received several awards following the Islamic Finance News (IFN) magazine survey.

It was voted the Best Islamic Bank in Palestine, the Most Innovative Islamic Bank in Palestine, the Best Islamic Retail Bank in Palestine, and the Best Islamic Investment Bank in Palestine.

Winning these awards confirms that PIB is on the right track to develop its business and implement its various plans, particularly in the areas of digital transformation and risk management, in line with the best standards of good governance.

Enhancing cybersecurity

As part of digitizing its services and providing them through multiple electronic channels, PIB is committed to serving its customers with the highest levels of security by providing a robust and secure technological environment capable of confronting any threat, especially as the number of advanced cyber challenges grows.

Based on this commitment, PIB applies best practices and principles in this area, most notably the Payment Card Industry Data Security Standard (PCI-DSS) and the Palestine Monetary Authority's Cybersecurity Regulatory Framework (PMA-CSF). These standards provide a robust and comprehensive framework that ensures the security of its data and banking transactions.

By implementing these standards, PIB has maintained and developed its capabilities in confronting cyber challenges. It has also implemented advanced systems for threat detection and incident response, in addition to leveraging the latest technologies to keep pace with cyber threats.

Given the importance of awareness in addressing cybersecurity challenges, PIB launched an internal cybersecurity awareness program to educate employees about the most prominent cyber threats they may face. Several campaigns were also launched to educate customers on this aspect.

Digitization Strategy

Launching a New and Updated Version of the "Islami Mobile" App

As part of PIB’s efforts to enhance its digital channels, a new and updated version of the "Islami Mobile" app was launched. The new app provides customers with many advanced digital features and services that meet their needs and aspirations, allowing them to enjoy banking services quickly, easily, and around the clock. It is also prepared to provide any future services and meet the ongoing changes and updates to systems and regulatory requirements. The app offers a range of exceptional services to customers, added after studying their needs.

The new Islami Mobile app allows customers to enjoy unique banking services, that include:

• Quick and easy registration with the app, either using their ATM card number or personal information.
• Access the app without internet or Wi-Fi, provided that mobile data is enabled (the service is exclusive to Jawal and Ooredoo subscribers).
• Conducting financial transactions using their fingerprint without having to enter an OTP verification code.
• A dedicated screen for managing various requests, "My Requests."
• View PIB’s most important and unique services.
• Find branches and ATMs.
• View accounts, cards, outstanding financing, and bills from the app's home screen.
• Get competitive currency exchange rates.

Access to the app is available in several ways in addition to a password:

• Using a 4-digit PIN
• Using a fingerprint.
• Using facial recognition.

Launching a payment service using a Smart Payment Ring and Bracelet

The bank launched a payment service using a smart payment ring and bracelet as part of its digital transformation strategy to enhance electronic payment solutions. This digital service allows customers to make digital, contactless payments using a smart payment ring or a smart payment bracelet, without using traditional payment methods or even carrying a bank card. The launch of this service also reflects PIB’s commitment to enhancing its customers' banking experience and fulfilling their aspirations for constantly changing and evolving digital services, especially for the youth.

Launching iBURAQ Services via the Islami Mobile App

As part of enhancing electronic services for customers, iBURAQ services were launched via the Islami Mobile App. This service is based on the central iBURAQ system, supervised and managed by the Palestine Monetary Authority. Through this system, payments can be sent and received instantly between PIB’s customers and customers of other banks or e-wallets across all governorates of the country, with complete speed and ease, in a unique digital experience that saves time and effort.

Launch of the Deposit Card for corporate customers

In line with PIB’s digital transformation strategy, the "Deposit Card" was launched for corporate customers. This card allows them to deposit checks and cash easily, securely, and free of charge through the bank's ATM network across the country. Customers can obtain it upon request at any branch or office. The deposit card is part of PIB’s commitment to enhancing its corporate and retail services and help both sectors in developing and growing their businesses. This will promote economic growth and development in Palestine.

Continued upgrading of the ATM network

As part of PIB’s digital transformation strategy to provide the latest banking services to its customers, the updating and development of the ATM network was completed. New ATMs were set up, designed according to the latest international specifications, and existing ATMs were upgraded. This development process followed an agreement the bank had previously signed with Jordan Business Systems (JBS), a leader in this field.

The new ATMs enhance the customer’s banking experience, thanks to their high efficiency and speed. They also feature technologies that facilitate access to accounts, such as contactless technology, which allow customers to use the ATM by simply swiping their card without having to insert it. They use a high-resolution screen that operates with highly effective touch technology. Furthermore, these ATMs will meet customers' future needs for services that can be provided through ATMs, which PIB is continuously developing.

Upgrading the banking system

To ensure the provision of the best quality banking services through an efficient, fast, and responsive banking system, the current system has been upgraded to BANKS 12. This will provide the best and most up-to-date services, which will improve the speed and quality of services provided to customers.

Developing a set of internal automation systems

As part of its ongoing development and modernization, many of PIB’s internal processes have been automated. This contributes to improving efficiency and quality in daily work, reducing human effort and potential errors, and enabling the establishment of controls and mechanisms specific to these processes.

Launching Modern Investment Management Systems

To enhance and support PIB’s investments, new systems have been developed and added to manage both PIB’s and the customers’ investment portfolios.

Automating Hajj Fee Payments

To facilitate and expedite Hajj fee payments at PIB’s branches and offices, the process has been fully automated. Each payment is directly credited to the Ministry of Endowments' account, eliminating the need for manual credit. This increases efficiency and reduces human errors.

External Audit Report

Financial Statements

Key financial indicators

Trading activity on the Bank's stock in US dollars

Financial statements compared with the previous year in US dollars

Legal procedures and issues:

The number of cases filed against the Bank within its normal activity was 78 and 90 cases as of December 31, 2024 and December 31, 2023, respectively. The value of the cases filed against the Bank amounted to $ 12,454,847 and 12,907,737 as of December 31, 2024 and December 31, 2023, respectively. In the opinion of the Bank’s management and legal department, the Bank will not incur any further liabilities from these cases and has sufficient provisions to deal with them.

Government protection and benefits:

There are no governmental protections or privileges enjoyed by the Bank or any of its products in relation to laws or regulations and there are no patents or franchises obtained by the Bank.

Decisions with material impact on international quality standards:

There are no decisions issued by the executive, judicial, or legislative authorities; international organizations; Israeli Occupation, or by any other entity, which have a material impact on the work of the Bank, its products, or its ability to continue as a going concern.

Related party contracts and deals:

There are no contracts and deals with related members of the board of directors not disclosed in the financial statements.

The Bank's subsidiaries:

The bank has no subsidiaries.

Relying on major suppliers and customers:

There are no specific suppliers or major domestic or external clients who make up 10% or more of the bank's total purchases.

External auditing:

The bank, based on the relevant instructions and regulations, has a contract with an external auditing company for the purpose of submitting a report on the fairness of the annual financial statements to the shareholders of the Bank based on international standards for the practice of auditing and the professional rules, principles and ethics.

External auditor:

Ernst & Young

Investing in Associates

The following are the details of investing in associatesas on December 31, 2023:

• Al-Takaful Palestinian Insurance Public Joint-Stock Company Ltd. (Al-Takaful) was established at the end of 2006 and practices insurance and reinsurance in accordance with the provisions of Islamic Sharia through its head office in the city of Ramallah and its branches in Palestine. The company's capital amounted to 11,000,000 million US dollars as of December 31, 2024..
• The Palestinian Ijara Private Shareholding Company (Ijara Company) was established and headquartered in the city of Ramallah. The company practices Islamic leasing for small and medium enterprises in accordance with the provisions of Islamic Sharia. The company's capital as on December 31, 2024 amounted to USD 12,000,000.

The following table shows a summary of the financial information related to the Bank's investment in its Associates as on 31 December 2024: