Chairman’s Message

Brothers and sisters distinguished shareholders,

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

During 2025, PIB continued its prudent policy of safeguarding against potential losses arising from the ongoing aggression on the Palestinian territories in the Gaza Strip and the West Bank. This was reflected through progressively increased provisions that take into account the deteriorating economic, social, and living conditions across the nation. As in previous years, the Bank complied with the instructions of the Palestine Monetary Authority regarding the deferment of instalment payments for public sector employees—particularly in the Gaza Strip—given the disruption of economic activity due to prevailing conditions, in addition to the full withholding of clearance revenues by the Israeli side and its continued refusal to accept the accumulated surplus of its currency held in bank vaults. These factors have further strained liquidity management and the provision of funds required by the Palestinian economic sectors to finance their commercial activities.

In response to these mounting challenges, PIB intensified its efforts to develop its products and technological tools, enabling customers to carry out their transactions, financing, and payments remotely using the latest technologies.

In this context, PIB Bank signed a cooperation agreement with Visa, adding to its portfolio of cards and electronic payment solutions. It also continued to enhance and develop Islami Mobile in line with customer needs, resulting in the expansion of its subscriber base to exceed 120,000 users by year-end.

The Bank also launched the IslamiPay service, enabling customers to make payments through the banking application or e-wallet using QR codes across participating merchants, based on the Quick service. In addition, point-of-sale (POS) services were introduced on a pilot basis, with plans to expand the network in the coming year. PIB further continued upgrading its ATM network, card systems, remittance systems, and human resources management systems, while strengthening cybersecurity and protection measures across all its platforms. As a result of these digital transformation efforts, the Bank ranked second in the banking sector in digital transformation and electronic services, according to the Palestine Monetary Authority.

On the corporate social responsibility front, PIB deepened its commitment to the Palestinian community in both the Gaza Strip and the West Bank, with a focus on the education, healthcare, and food sectors. This included funding food assistance initiatives and supporting various projects, most notably the financing of a comprehensive school construction project in the Gaza Strip in partnership with the Palestinian Ministry of Education and Higher Education.

During the year, and as part of strengthening its financial base, Palestine Islamic Bank (PIB) increased its capital by USD 6 million. Despite the prevailing conditions, and after taking all necessary precautionary measures, the Bank achieved growth in its total assets of approximately 11.5% compared to the previous year, reaching an increase of nearly USD 184 million.

At the same time, PIB successfully grew its customer deposits, with total deposits reaching USD 1.491 billion, representing an increase of around 11.5% compared to the previous year. Meanwhile, net direct credit facilities recorded a decrease of 3% compared to the previous year. Net profit after tax amounted to approximately USD 4 million, reflecting a significant increase of 304.69% year-on-year. Return on equity stood at 2.50%, while return on assets reached 0.23%.

These results reflect the sound planning adopted by PIB’s Board of Directors and its close oversight through its various committees, in coordination with the executive management, which exerted sustained and considerable efforts to achieve these outcomes. Cooperation and coordination with the Palestine Monetary Authority also played a key role in identifying appropriate solutions and navigating the challenges during difficult times. PIB’s management has consistently operated under the guidance and supervision of the Sharia Supervisory Board, which has diligently ensured compliance with Sharia principles and the alignment of modern products with Islamic banking standards, in addition to its ongoing efforts to raise public awareness of Islamic banking principles.

In conclusion, I extend my sincere thanks to our valued customers for their continued trust and support, which motivates us to move forward on the path of stability and success, God willing.

God grants success,

May the Peace and Blessings of Allah be with you,

Maher Masri 

Chairman of the Board of Directors

About PIB

Overview

Palestine Islamic Bank PLC (PIB) was established in 1995 and commenced banking operations at the beginning of 1997. The bank has an authorized capital of 110 million shares, with a nominal value of one US dollar per share. Since its establishment, the bank has increased its paid-up capital several times, most recently in 2025, when it reached USD 106 million, up from USD 100 million in 2022.

The bank conducts banking, financial, commercial, and investment activities in accordance with the principles of Islamic Sharia, through a network of 43 branches and offices and more than 100 ATMs across Palestine. This confirms its position as the largest Islamic banking network in Palestine, supporting its vision of becoming the leading Palestinian bank in Islamic banking activities and services that meet customers’ needs and expectations.

The bank continuously seeks to meet the financial needs of all categories of the local community. It also mobilizes its capabilities to fulfill its mission of excelling in providing modern, secure banking and investment solutions in compliance with Islamic Sharia, while working to achieve sustainable partnerships with stakeholders and the wider community. At the same time, the bank remains committed to developing and attracting highly qualified human capital in order to provide the best Islamic banking services to customers and to innovate banking products that meet their aspirations and offer them a distinctive banking experience.

The bank also operates according to a well-planned and systematic digital transformation strategy, which has resulted in the launch of numerous digital services, products, and electronic payment solutions. As a result of these efforts and its excellence in Islamic banking in Palestine, the bank was awarded “Best Islamic Bank in Palestine 2025” by Islamic Finance News (IFN) in recognition of its performance across several areas.

The bank believes in its role in contributing to the sustainable development process through the implementation of annual projects with positive and lasting impact, particularly in the health and education sectors. It also undertakes initiatives to protect the environment by operating a number of its premises on solar power, thereby helping reduce harmful gas emissions. In parallel, the bank issued its first Sustainability Report in 2025, in line with the Global Reporting Initiative (GRI) standards, covering the bank’s interventions in the Environmental, Social, and Governance (ESG) fields.

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 2025

Capital Increase

In line with the Bank’s commitment to the General Assembly’s resolution regarding the increase in capital, PIB carried out a secondary public offering in 2025 through which 6 million shares were offered. This strategic step contributed to strengthening the Bank’s financial soundness and supporting its future plans in a manner that ensures sustainable growth serving the interests of shareholders and the national economy.

The offering also enhanced the Bank’s ability to address challenges effectively by maintaining an appropriate capital adequacy ratio in accordance with the relevant regulations and instructions. In addition, the offering is aligned with the Bank’s development plans, particularly in the area of digital transformation.

The Bank’s authorized capital amounts to 110 million shares, with a nominal value of one US dollar per share. Since its establishment, the Bank has increased its paid-up capital several times, most recently in 2025, when it reached USD 106 million, up from USD 100 million in 2022.

Issuance of the First Sustainability Report

Driven by its commitment to transparency, ethical governance, responsible growth, and support for the achievement of the global Sustainable Development Goals, the Bank issued its first Sustainability Report in accordance with the Global Reporting Initiative (GRI) Standards, covering the Bank’s interventions in the Environmental, Social, and Governance (ESG) fields.

The report highlights the wise interventions and practices implemented by the Bank in key sustainability areas over recent years, including 2024, across its operations and banking services, with the aim of reducing environmental impacts, strengthening governance and transparency, and advancing its community responsibility initiatives.

The report also outlines the methodology adopted by the Bank in the field of sustainability, in addition to the key results it has achieved across the various sustainability pillars.

To view the report, Click here

The Second Palestine Islamic Bank Leadership Conference

As part of the Bank’s preparations for its upcoming 2027–2030 strategic plan, and to discuss key achievements and challenges, PIB held its Second Leadership Conference under the theme “One Family.” The conference was attended by Dr. Imad Al-Sadi, General Manager, PIB Assistant General Managers, Regional Managers, Heads of Departments and Units, Managers of the Bank’s branches and offices, and participants in the Bank’s future leadership development program, LEADERS.

The conference featured a number of presentations, interventions, proposals, and recommendations addressing various aspects of the Bank’s operations and strategic plans, with particular focus on the digital transformation strategy, the efficiency and quality of operations and services, as well as challenges relating to the local market and the banking sector in Palestine.

Participation in Regional and International Conferences

In line with the Bank’s strategy to strengthen local and international partnerships, and with the aim of keeping pace with the latest developments in the financial sector regionally and internationally, particularly in the areas of payment systems, AI-enabled digital transformation, cybersecurity, sustainability, and financial inclusion, the Bank participated in a number of conferences related to banking and finance in general, and Islamic banking in particular.

The Bank took part in the Sibos 2025 event, organized over four days by the Society for Worldwide Interbank Financial Telecommunication (SWIFT) in Frankfurt. Sibos is regarded as a leading annual event in the global financial services industry.

PIB was represented at Sibos 2025 by its General Manager Dr. Imad Al-Sadi, and Asim Al-Masri, Assistant General Manager for Planning and Development. The conference brought together hundreds of experts, specialists, executives, and representatives from banks, fintech companies, payment providers, artificial intelligence firms, and information security specialists.

The Bank also participated in the 23rd AAOIFI Annual Sharia Boards Conference, held over two days in the Kingdom of Bahrain. The conference featured a number of discussion sessions with leading Sharia scholars, policymakers, decision-makers, and other experts in the Islamic finance industry.

The Bank was represented at the conference by Dr. Alaa Razia, Chairman of the Sharia Supervisory Board, and Dr. Ayman Jweleis, Member of the Sharia Supervisory Board, alongside a large number of representatives of Islamic banking and financial institutions from around the world, as well as representatives of regulatory bodies and regional and international figures.

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.

Best Islamic Bank in Palestine Awards in Several Categories – 2025

In recognition of the achievements accomplished by the Bank during 2025, and its launch of new, innovative Sharia-compliant products and services, PIB received several awards from Islamic Finance News (IFN).

The Bank won awards in the categories of Best Islamic Bank in Palestine, Most Innovative Islamic Bank in Palestine, Best Islamic Retail Bank in Palestine, and Best Islamic Investment Bank in Palestine.

Receiving these awards confirms that the Bank is moving in the right direction in developing its business and implementing its various plans, particularly in the areas of digital transformation, risk management, and adherence to best practices in good governance.

Cooperation Agreement with the Middle East Investment Initiative

As part of the Bank’s efforts to provide distinctive financing services, a cooperation agreement was signed with the Middle East Investment Initiative (MEII), owner of the Tamweeli.ps platform.

This agreement is aligned with the Bank’s efforts and orientation in the area of sustainable finance, which focuses on targeting the micro, small, and medium enterprise (MSME) sector, as well as its efforts to enhance financial inclusion by making banking services available through various channels and platforms.

Under this agreement, customers can submit financing applications electronically through the Tamweeli.ps platform, while the Bank reviews the applications and provides suitable financing offers through the platform, without the need to visit branches.

Launch of Campaigns to Promote Electronic Payments

As part of the Bank’s plans to encourage customers to adopt electronic payment solutions, several campaigns were launched, featuring dozens of cash prizes to encourage customers to top up and make electronic payments through the E-SADAD service and to carry out instant transfers through the iBURAQ service using the Islami Mobile application.

These campaigns also came in line with the Bank’s digital transformation strategy and its efforts to make it easier for customers to complete all their transactions, as well as view and pay their bills and fees across various sectors, quickly and conveniently, without the need to visit the bank's branches.

Sponsorships and Events

During 2025, the Bank continued to strengthen its presence and commitment to its community role by sponsoring and supporting a number of specialized events and conferences through its partnerships with various local institutions, bodies, and entities. As part of its strategic partnership with the Nursing and Midwifery Syndicate, the Bank sponsored the scientific conference entitled “Integrating Artificial Intelligence to Enhance Emergency Response in the Palestinian Healthcare System”, held on the occasion of the International Nurses Day and the International Midwives Day.

The conference, hosted by An-Najah National University, featured a number of scientific lectures on topics related to the use of artificial intelligence in the healthcare system and in crisis response.

The Bank also provided Diamond Sponsorship for the Seventh Refereed Scientific Conference of the Faculty of Business and Communication at An-Najah National University, held under the title “Building Sustainable Economies: Knowledge, Innovation, and Digitalization in the Middle East and North Africa”, reaffirming its support for scientific research, knowledge dissemination, and innovation.

As part of its efforts to empower youth and enhance employment opportunities, PIB also provided Strategic Sponsorship for the Nablus Employment Event, in line with its vision of supporting sustainable development and strengthening partnerships with various sectors.

Strengthening Internal Communication and an Interactive Work Environment

The Bank further expanded its internal activities aimed at fostering a one-family atmosphere and strengthening employees’ sense of belonging and loyalty through the implementation of various internal initiatives and the launch of programs that support them from different perspectives.

To reinforce an interactive work environment and encourage competition and excellence across the Bank’s regions and branches, the “Distinguished Branch Award” program was launched. Under this program, each region was periodically evaluated, and the branches ranking first, second, and third were selected according to approved criteria and gradings that contributed to achieving the targeted objectives.

Providing banking services in the Gaza Strip

As part of its commitment to its national and social role, the bank was the first banking institution to reopen its branch in Gaza City after a period of closure due to the dire circumstances imposed by the war. This reopening is part of the bank's ongoing efforts to enable customers in Gaza to access their accounts and enjoy banking services, as well as to contribute to the economic recovery of the Gaza Strip.

The reopening of the Gaza branch has also allowed the bank to serve a larger number of customers, in addition to the continued operation of the Deir al-Balah branch, which provided services throughout the war using available resources and ensuring the safety of its employees, given the damage to other branches and the difficulty of accessing them.

The provision of banking services through the Gaza and Deir al-Balah branches was carried out in parallel with providing banking services to all customers through the bank's digital channels, particularly the digital call center and the mobile banking application.

The bank's role was not limited to providing banking services in the Gaza Strip. Throughout 2025, it continued its contributions to supporting and assisting the people of Gaza through numerous initiatives focused on relief efforts and supporting the education sector.

Digitization Strategy

Launch of the World Elite Mastercard

In line with the Bank’s vision of providing distinguished and modern banking solutions, and as part of its strategic digital transformation plan, the Bank launched its World Elite Mastercard credit card, the first of its kind in the Islamic banking market in Palestine.

This card represents a qualitative addition to the set of remarkable cards offered by the Bank and comes as part of the strategic partnership between the Bank and Mastercard.

The card enables its holders to enjoy the highest levels of luxury while traveling and shopping around the world, in line with their aspirations. It also provides them with a credit limit that enables them to purchase goods and commodities, lease services, and shop online, with the option of paying in installments over different periods according to the customer’s preference, or through cash payment, all in accordance with the principles of Islamic Sharia.

Joining the Global Visa Network

As part of its plans to enhance the electronic payment solutions offered to customers, the Bank signed a cooperation agreement with Visa.

Under this agreement, the Bank will offer its customers various Visa cards to meet their needs for innovative financial solutions and lifestyle benefits provided by the company, thereby contributing to the diversification of the Bank’s card portfolio and electronic payment solutions.

Enhancing Islami Mobile App Services

As part of its digital transformation strategy, PIB continued to enhance and develop the Islami Mobile application throughout 2025 in a manner that keeps pace with customers’ growing needs and improves their banking experience.

These efforts included expanding the range of services offered through the application and improving its efficiency and ease of use. This contributed to the rapid increase in the number of subscribers, due to the distinctive user experience it offers and its role as a fast and convenient alternative for accessing banking services without the need to visit branches.

Launch of the IslamiPay Service

In line with its plans to strengthen electronic payment solutions, the Bank launched the IslamiPay service, which enables users to make payments with ease via the banking application or e-wallet by scanning a QR code at participating merchants, based on the Quick service through the iBuraq platform.

The service offers users greater convenience and security through a modern, seamless payment experience available via the applications of all local banks and e-wallets. The network of participating merchants is also being continuously expanded.

Point-of-Sale Services

Given the importance of electronic payment services in facilitating financial transactions, supporting the transition to a digital economy, and diversifying electronic payment solutions offered by the Bank to its customers, a Memorandum of Understanding was signed with Neo Cash to provide point-of-sale services.

Under this agreement, the Bank began offering POS terminals and the Soft POS application. The expansion of this service is also expected to strengthen the Bank’s balances and deepen its relationships with its merchant customers.

Development of a Number of Internal Systems for the Bank’s Operations

As part of its ongoing development and modernization efforts, the Bank automated a number of its internal processes by launching systems designed to improve the efficiency and quality of daily operations, reduce human effort and the errors that may result from it, and establish controls and mechanisms tailored to these processes. These systems include:

1. Collection System and Legal System: Introduced as part of the automation of internal processes, this system is designed to streamline and control the collection process and accelerate follow-up procedures efficiently and effectively.
2. Enhancement of Systems Supporting Internal Bank Operations: This includes, most notably, the automation of corporate payments, installment payments, and the target management system.
3. Upgrading Card Systems, Transfer Systems, and the MenaMe Human Resources Management System: These upgrades were implemented as part of the Bank’s ongoing efforts to improve performance, enhance efficiency, and ensure compliance with the latest technical and operational requirements.

Second Place in the Banking Sector in Digital Transformation

As a result of the Bank’s significant achievements in digital transformation during 2025, it ranked second among banks in the field of digital transformation and electronic services, according to the Palestine Monetary Authority’s annual assessment of the level of electronic services and digital transformation in banks.

According to the report, 92% of the Bank’s customers use the multiple electronic channels it provides around the clock, in line with the latest digital banking practices.

This distinction in digital transformation is consistent with the Palestine Monetary Authority’s ongoing directions and plans to advance digital transformation and encourage customers to adopt electronic payment solutions, given their important role in enhancing financial inclusion and accelerating the development process.

External Audit Report

Financial Statements 2025

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  as of December 31, 2025 and December 31, 2024, respectively. The value of the cases filed against the Bank amounted to $ 12,519,384 and 12,454,874 as of December 31, 2025 and December 31, 2024, 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 affiliates as on December 31, 2025:

• 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, 2025.
• 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, 2025 amounted to USD 12,000,000.

The following table shows a summary of the financial information related to the Bank's investment in its affiliates as on 31 December 2025: