To maintain our leading position as one of Palestine’s leading financial services institutions.
To be the national alternative for Palestinians who seek a sound, modern and superior financial services provider
The National Bank (“TNB”) is the second-largest bank in Palestine and the fastest growing in the country. Since its inception, it has proven that it is one of the best and most innovative providers of integrated and comprehensive national banking services for the corporate and retail sectors. It also provides investment, treasury, and financing services for small, medium, and micro-enterprises. The Palestine Monetary Authority (PMA) classifies TNB as a bank of systemic importance in Palestine, and this classification was part of the first out of five approved packages.
Under the slogan "Confidently Moving Forward", the National Bank provides the finest modern and advanced banking services in Palestine and seeks to become the bank of choice for Palestinians looking for a strong, secure, and up-to-date financial service provider. Its goal is to provide advanced banking services that keep pace with the latest global banking technology developments. TNB has been developing a package of digital services and solutions that are offered for the first time in Palestine or even in the Middle East.
The bank's paid-up capital is approximately 105 million US dollars, and its stated capital was raised to 110 million US dollars in 2019. TNB is managed by a Board of Directors that includes a group of the largest Palestinian companies, and some of the most prominent and talented businessmen and women. It has the largest number of shareholders among banks in the country, exceeding 8000.
TNB carries out the largest number of acquisitions and mergers (A&M transactions) in the country, the most recent of which was the acquisition of the Jordan Commercial Bank (JCB) in Palestine in early 2020. In 2018, It led a consortium of shareholders to acquire a controlling interest in the Palestine Islamic Bank (PIB). That deal became the largest in the history of the Palestine Stock Exchange, exceeding 70 million US dollars. This was preceded by the acquisition of the assets and liabilities of Bank al Etihad in Palestine in 2015, making it the first acquisition of a Jordanian bank by a Palestinian bank.
The National Bank provides banking services to more than 158,000 clients, through its network of branches located in various governorates of the West Bank, and its well-located ATMs. It also provides its services through its modern digital channels such as Online Banking and the TNB Mobile application for smart phones, in addition to the Digital Service Center, which is the first of its kind in the Middle East. In 2017, after a fifty-year absence of Palestinian banks in Jerusalem, TNB was the first Palestinian bank to inaugurate a branch behind the wall to serve the residents of the city. Environment protection and clean and renewable energy are some of the most important values for TNB. TNB was a leader amongst banks to invest in solar energy; the bank purchased a stake in the “Noor Jericho” solar plant that now provides approximately 85% of its energy needs.
TNB was established on August 20, 2005, as a public joint-stock company by Palestinian businessmen and companies, with the aim of developing the Palestinian economy in general and providing excellent banking services. It was established with a capital of 30 million dollars: 38% was subscribed by the founders of the bank and the rest was by public subscription. The remaining shares were distributed among more than 18,000 shareholders.
In 2011, Palestine Telecommunications Company acquired a strategic stake of TNB through a private subscription of $5 million, bringing its total stake in the bank to $7 million. As a result, the bank’s capital increased to $35 million.
In 2012, Massar International Investment became a new strategic partner, raising the bank's capital to $40 million. By the end of 2012, the National Bank was re-launched with a new identity, in implementation of the acquisition agreement between Al Rafah Microfinance Bank and the Arab Palestinian Investment Bank with a paid-up capital of $50 million. TNB became a new strong national banking entity capable of covering all the banking needs of Palestinian society.
In early 2015, TNB acquired the assets and liabilities of Bank al Etihad in Palestine. Following that deal, Bank al Etihad became a strategic partner in TNB with 10% of its paid-up capital. This increased TNB’s paid-up capital to $75 million and made it the second-largest Palestinian bank. In 2019, the General Assembly approved raising the stated capital to $100 million, and the bank's paid-up capital was increased to $78 million by distributing 4% bonus shares. In 2018, TNB led a consortium of shareholders to acquire a stake in Palestine Islamic Bank (PIB), and own 25% of its shares. In early 2020, TNB acquired the assets and liabilities of the Jordan Commercial Bank in Palestine. The latter became a strategic partner in TNB, after offering a private subscription of 13.76 million shares, and owning 15% of the capital which was raised to approximately $92 million. In 2021, the bank’s paid-up capital was raised to approximately $105 million, after offering 13.76 million shares in a secondary public offering to the bank’s shareholders leading to the coverage ratio from additional shares reaching 93%. TNB thus became the second-largest Palestinian bank in terms of capital.
In continuation of its pioneering and distinguished role in various fields, the National Bank was able to gain local and regional attention and win numerous awards in various fields, including:
- International Finance Magazine award in 2018, as the Most Innovative Bank in Palestine.
- CPI Financial’s Fastest Growing Bank in Palestine award in 2014, 2016, and 2017, and its affiliate magazine. The Banker Middle East ranked TNB in its 100th edition in 2014 as the fastest-growing bank in the Middle East.
- CPI Financial/ The Banker Middle East’s Best Female Empowerment Bank award in the Middle East in 2017.
- Union of Arab Banks Innovation Award for Women Economic Empowerment in 2017.
- CPI Financial/ The Banker Middle East’s Best Treasury Management award for 2014.
- Union of Arab Banks award for the Largest Shareholder Base for 2015.
- Aman’s Integrity award in 2012.
.
The National Bank owns 100% of "WatanInvest Private Shareholding Company", which was acquired following an agreement between Al Rafah Microfinance Bank and the Arab Palestinian Investment Bank. Accordingly, the Arab Palestinian Investment Bank became wholly owned by TNB and its name was changed.
TNB owns 100% of the National Islamic Investment Company, which was established in 2018. Through NIIC, TNB acquired a direct stake in the Palestine Islamic Bank (PIB) amounting to 25% of its shares.
Ladies and Gentlemen, distinguished shareholders,
After a year full of challenges, I and the members of Bord have the pleasure to present to you the 2021 Report of the National Bank on the work and financial results of TNB.
Increasing TNB’s paid-up capital:
During the year, TNB continued its journey of growth and progress, whereby we were able to secure a strong financial performance and made great strides in laying solid foundations for our bank to support our growth and development plans. During the year 2021, TNB shareholders directly responded to the decision of the extraordinary session of the General Assembly, and raised their investment, after 13 million shares were offered in a secondary public offering and 93% of the increased shares were covered. This increased the bank’s paid-up capital from USD 92 million to USD 104.5 million and turned the National Bank into the second-largest Palestinian bank. It allowed us to rely on a solid capital base that would support the bank’s ambitious development and growth plans, in order to reach new heights in the Palestinian banking market.
Development plans for 2021:
In 2021, we focused on implementing a large part of our development plans to enhance the bank’s performance. We appointed a new executive management team with young talents and restructured our organizational chart to promote efficiency and effectiveness. In line with corporate governance best practices, we developed our overall policies and procedures, and promoted the role and independence of our supervisory departments. We increased our investment in digital infrastructure.
Financial Results:
In 2021, we were able to achieve satisfactory financial results that met the goals set by the Board of Directors, thereby enhancing the financial status of the Bank. By the end of last year, our net profits reached $14 million, $8.5 million of which for the shareholders. As of December 31, 2021, the bank’s total assets were estimated at $1.63 billion, our clients’ deposits amounted to $1.21 billion, and the credit facilities and direct financing portfolio reached $877 million. Our financial statements also show that the bank’s revenues amounted to $86.8 million.
Subsidiaries and allied companies:
In 2021, in line with the PMA directives and to organize the bank’s investment portfolios, 100% of the shares of the National Islamic Investment Company were bought, and it is now owned by TNB. Based on the aforementioned, the direct stake of TNB in PIB through the National Investment Company is 25%. From the operational perspective, this step did not have any financial impact on the bank or on the shareholder returns, but according to international financial reporting standards, this required the financial statements of the two banks to no longer be consolidated after 30/6/2021.
Digital services and banking products:
At the level of services and products and in order to advance in our journey towards digital transformation, TNB was at the forefront of remote account opening services, in order to provide access to banking services to Palestinian citizens wherever they may be in the Palestinian territory, and to overcome physical and geographical barriers to benefit from banking services. This comes as a contribution from TNB to financial inclusion in Palestine. In addition, we launched updated versions of Al-Watani Online and Mobile services with advanced features, allowing our customers to benefit from additional services to access their accounts, cards and balances at any time and from anywhere.
Local and international partnerships:
2021 witnessed the renewal of our strategic partnerships and the creation of new partnerships with prominent local and international institutions. In order to support our national economy and promote development, we signed a risk distribution agreement with the European Investment Bank (EIB) to support SMEs in Palestine following the repercussions of the pandemic and facilitate their access to financing and flexible lending with reduced interest rates. This agreement builds on the previous lending agreement with the Bank, which amounted to $50 million. We signed several agreements with major local institutions, most importantly to renew the bank's mandate to preserve and manage the funds and assets of the Palestinian Pension Agency.
Future plan:
This year, a new strategic plan will be adopted for the years to come. Its goals are ambitious, and it seeks to build on the effective and efficient growth achieved, increase investments in digital technology, expand the customer base, enhance shareholder returns, ensure calculated geographical expansion, and launch more banking services and products that meet the financial needs of our society. This is in line with the ambitious goals set by the Board of Directors and seeks to ensure our customer's and shareholders’ satisfaction. We also continue with determination and confidence to strengthen our governance and regulatory frameworks to enhance TNB’s position and place it on the regional and global map. Our firm commitment to implementing the best governance practices and promoting a sound regulation culture, are the main factors behind the bank’s success and strengthening its journey in implementing its growth strategy.
Samir Zuraiq
Chairman of the Board of Directors
The National Bank raised its paid-up capital to $104.58 million, after calling for a secondary public offering, during which 13.76 million shares were offered with a nominal value of one dollar for each share of the bank's shareholders, as on the date of the extraordinary general assembly meeting. As a result, 93% of the shares offered for subscription were covered, bringing the bank's paid-up capital to $104.58 million, and making the National Bank the second-largest Palestinian bank in terms of capital.
TNB’s General Assembly had approved, in its extraordinary meeting, raising the bank's stated capital to 110 million US dollars, and the paid-up capital to 105.53 million US dollars.
In 2021, the National Bank renewed its strategic partnerships with major Palestinian local institutions, including:
.In line with its strategy to provide advanced digital services, the National Bank launched the Onboarding service, which allows people to open current, savings, and financial inclusion accounts remotely, easily, and safely using digital technology at any time and from anywhere, even outside working hours. This promotes the access of a large number of Palestinian citizens to banking services. It allows TNB to overcome geographical barriers and deliver national banking services to people wherever they are, thus contributing directly to the promotion of financial inclusion in Palestine.
In 2009, TNB invested in the Noor Jericho Solar Power Plant. It purchased a share of 1.17 megawatts to meet the energy needs of its branches and headquarters which get their supply from the Jerusalem District Electricity Company. According to reports, TNB was able to reduce its carbon emissions by 3,900 tons in two years.
The bank’s investments in solar energy and its goal to reduce carbon emissions are in line with its vision: ensuring sustainable investments and business and contributing to national energy self-sufficiency by switching to clean and renewable energy, especially given that the sun shines in the Palestinian sky all year long. For two consecutive years, TNB has continued to protect the climate, and the environment and promote ESG sustainable practices in order to achieve sustainability in its business.
The National Bank and the European Investment Bank signed a risk distribution agreement to support SMEs in Palestine, and to facilitate their access to financing in order to support the implementation of the $50 million lending agreement concluded with the Bank earlier.
Through this agreement, TNB was able to ensure financing to Palestinian SMEs, by offering flexible lending terms and low-interest rates.
The National Bank launched a special program to finance SMEs, with a total ceiling of $50 million, in support of this sector, which is considered the most affected by the pandemic and its economic repercussions. The program provides financing in the form of loans with low interest rates and flexible guarantees granted on a case-by-case basis. The maximum funding limit for a single project is $12.5 million. The program also offers a grace period of up to one year, while the financing period extends over a maximum of 7 years.
As part of its role to empower Palestinian women economically, especially after the economic repercussions of the Covid pandemic, the National Bank launched “Hayati” program, which provides 10 million dollars in funding to establish productive income-generating projects led by Palestinian women. The financing ceiling for a single project is up to $100,000, with preferential interest rates and flexible guarantees, as well as a repayment period of up to 6 years and a grace period of up to six months. “Hayati” allows women with savings accounts to use their savings to obtain 4 times their value in financing to develop their productive projects. Through the program, 3 entrepreneurial projects will be selected and financed without any interest or profit as a community contribution from TNB to support entrepreneurial projects.
The National Bank's strategic plan established ambitious goals to advance the bank's services, maintain our prominent position in the banking sector in Palestine, and grow in a cautious and profitable manner.
The objectives of the National Bank's strategic plan are as follows:
• Improving resource efficiency, with the aim of achieving a higher return on investment for shareholders.
• Ensuring the advancement of the quality of services provided, and the provision of competitive and responsible banking products that meet the needs of our customers.
• Providing innovative and modern digital banking services, offering our customers an advanced digital banking experience.
• Achieving a level of profitability that meets the aspirations of TNB shareholders and securing a higher position in the competitive ranking of the Palestinian banking sector.
• Developing and raising the efficiency of the human capital of bank, to provide services in an optimal way.
• Keeping abreast with the era of digital technology by using the banking system to support electronic channels to meet the aspirations of the young generation.
• Adopting an effective and sustainable social responsibility program that focuses on supporting the national economy and the social and environmental sectors.
To achieve the objectives of the strategic plan, TNB worked on the following:
• Focusing on investing in digital technology in providing banking services.
• The deliberate use and reliance on digital channels to provide services and reach unserved places.
• Working on developing responsible banking products based on the actual financial needs of the targeted economic sectors.
• Focusing on the SME sector and increasing funding for it.
• Focusing on the retail sector by developing new and unique products.
• Excellence in the quality of services provided to clients.
• Further training of the human cadre of TNB to bolster its efficiency and ability to provide services to customers in an optimal manner.
TNB will also operate during 2022 under a new strategic plan, noting that the strategic plan for the year 2021 was a continuation of the 2018-2020 strategic plan.
Ernest and Young – Ramallah – Al Masyoun – Padico House – 7th floor
Phone number 02-2421011 P.O. Box 1373
The auditor fees amounted to USD 1,394,212 during 2021.
Penalties imposed on TNB reached USD 20,000 during 2021.
The value of lawsuits filed against the bank reached USD 44,809,467 and USD 8,613,713 in 31/12/2020 and 31/12/2021 respectively. The amount of 10,169,998 from these lawsuits included the normal activity of the bank while the rest of the amount, 34,639,469, was related to operational events, while in the opinion of the legal advisor, and the executive management of the bank they have no legal grounds.
The bank management and the legal advisor estimate that no obligations will result from these lawsuits except for what was allocated.
There are no entities controlling the bank, directly or indirectly.
There are no local or international main supplier or customers that constitute 10% of the bank’s purchases or sales.
There are no governmental privileges or immunities for the bank or any of its products under laws, regulations or others. There are no patents or franchises acquired by the bank.
No financial impact of a non-recurring nature was registered during 2021 and it was not included in the bank’s main activity. However, the clear discrepancy in the growth rate in the financial status and the bank’s income statement is a result of the partners exit from the national company, with the exception of the bank. The partners ceded all their stocks in the national company to the bank in exchange for the company ceding to the partners stocks in the Palestinian Islamic bank (PIB) that equal the contribution margin of each of these partners in the national company. Therefore, the contribution of each of the partners will become a direct contribution to PIB. Therefore, the contribution margin of the bank in PIB stocks becomes 24,85%. Therefore, the financial statements of PIB were not consolidated with the bank’s financial statement as was the case on 31/12/2021.
The board was restructured in 2017 to include three independent members and a representative of the minority shareholders, in line with corporate governance best practices and PMA’s regulation No. 10 of 2017, and in implementation of the PMA Corporate Governance Guide.
Independent Member: A member of the Board of Directors who is not subject to any external influences limiting their ability to make substantive decisions in favor of the Bank.
Member Representing Minority Shareholders: A member of the Board of Directors representing minority shareholders whose shares or the shares of their relatives (up to second cousin) do not exceed two in a thousand.
- Distributing the annual report to shareholders through the headquarters and branches in all areas and through the mail.
- Through the bank’s website, where financial and managerial data and reports are published.
- Through the Palestinian Exchange and the Capital Market Authority websites, where financial statements are published quarterly, semi-annually, and annually.
- Announcements in local newspapers.
Since 2015, the National Bank has sought to contribute to the financial inclusion of Palestinian women and their empowerment, especially after releasing its first specialized saving product, offering interest-free loans to women-led SMEs estimated at $3.5 million. The National Bank has worked tirelessly to raise awareness on banking services among this vast segment of the community, with a particular focus on Palestinian rural and marginalized areas.
In 2021, despite the economic repercussions of the pandemic, the National Bank was able to maintain high financial inclusion rates, with females accounting for 34% of its total clients. In terms of accounts, females who own current accounts accounted for 25% of TNB’s clients, a 4% increase compared to 21% the year before. For savings accounts, there was an increase by the end of 2021, of 61% for women owned accounts compared to 39% owned by men.
The National Banks provides comprehensive, quality and innovative banking solutions to all economic sectors, including corporate, retail, investment and treasury services. It also provides SME lending through a department with well-experienced team of experts.
Personal loans
Mortgages
Car loans
Overdrafts
MasterCard and Visa credit cards
Debit cards
VIP services (Platinum)
Hayati, the first comprehensive integrated banking products package dedicated to Palestinian women
Financing trade, industrial and real-estate operations
Financing fixed assets
Open and fixed overdraft accounts
Letters of guarantee
Letters of credit
Bank guarantees
Bills for collection
Financial consultations
Gold-backed loans
Project financing
Home-based projects and businesses managed by women
Seasonal needs financing
Group financing
Personal computer financing
Financing for public transport
Financing for people with special needs
Financing of youth projects
Financing production-oriented projects aimed at empowering women
Investments in local and international bonds
Futures and options
Precious commodities and metals
Investment funds
Safe deposit boxes
Spot Deal Transactions: buying and selling currencies for settlement on the spot date.
Forward Deal Transactions: buying and selling currencies to be paid or received on an obligation beginning at a future start date.
Swap Deal Transactions: Exchange of one currency for another at fixed dates.
Western Union
Send and receive money safely and quickly through the Western Union service from the National Bank. This service offers you the ability to send and receive money without the need for an account and from anywhere in the world.
Online bill payment
To ensure the customer’s comfort and provide the best service, TNB offers online bill payment service for all public utility services. No need to waste your time and wait in long queues to pay bills.
Tax payment
To save your time and effort, the National Bank offers to pay your taxes in any of its branches.
Safe deposit boxes
Do not worry about your valuables and important documents. The safety deposit boxes provided by the National Bank have a high security system and are designed in different sizes and shapes to suit the needs of all customers. Our price offers cater to everyone.
Al-Watani online
“Al-Watani Online” provides a unique online banking experience, with a modern design and various features to facilitate quick and smooth online banking transactions. It also allows you to control your bank accounts from anywhere and at any time, without having to visit a branch. It provides the highest standards of security and privacy.
Al-Watani Mobile
“Al-Watani Mobile” provides a unique online banking experience, with a modern design and various features to facilitate quick and smooth online banking transactions. It also allows you to control your bank accounts from anywhere and at any time, without having to visit a branch. It provides the highest standards of security and privacy. The app is available on Google Play and the App Store.
Onboarding Service
With this service, there is no need to visit a branch to open a new account. Individuals can go on the bank's website and open an account remotely within 20 minutes, easily, and in the currency they need. The banking accounts that are available through this service include, current, savings and financial inclusion banking accounts.
Cardless service
Through the Cardless service, you can use an ATM without a card. This is the first time such a service is provided in Palestine. It enables customers to benefit from ATM services without the need to carry an ATM card.
This service basically solves the problem of customers forgetting their card, or their need to use an ATM in an emergency. Customers can complete simple banking operations through ATMs such as balance inquiries, cash withdrawals, and cash deposits at ATMs that receive deposits. They can also request a mini account statement and make transfers, without the need to carry their card.
E-statement
Customers can have a monthly account statement by email without having to visit the branch.
The National Bank Savings Account is designed for all Palestinian individuals of all ages, and its goal is to provide a safe place to save money that encourages you to save what you can, today and periodically, to find it tomorrow when you need it.
Al-Watani savings account features:
• For all age groups
• Can be opened for a child sponsored by a parent or legal guardian
• It is not subject to any commissions
• It is not subject to any interests
• It may be opened without the need of a current account
• No minimum balance required (a minimum balance is however required to enter the prize draw in the event that a prize campaign for savings accounts is taking place)
• There are a number of e-services that may be used (ATM card, internet banking, AMS service, etc).
• Manage your account and make any inquiries through the digital services center.
• Transfer funds between The National Bank’s savings account and your current account at TNB.
• Although the aim of a savings account is to save, you can withdraw money from a savings account from an ATM when needed.
TNB offers the innovative TNB Rewards program for clients who use TNB’s Silver, Gold, and Platinum credit cards. The program allows card users to accumulate reward points every time a credit card is used, whether for making purchases at points of sale or through online shopping transactions. They can exchange their points through various electronic channels at any point in time, anywhere around the world.
The TNB Visa Signature card offers a number of benefits that are perfect for you, enriching your travel experience regardless of your destination around the world!
The Visa Signature card is the ideal travel partner and offers exclusive benefits and rewards. It gives its holder VIP status in locations where the card is used. Benefits include travel insurance, purchase protection, medical and legal transfers in case of emergency, and international services to help clients. A 24/7 service is also provided while traveling and using the card.
Master Card “Platinum” is designed specifically to suit your lifestyle and provides you with the luxury to access the finest and best services easily and conveniently wherever you are in the world. It offers exceptional benefits for shopping and travel, including access to numerous business lounges in airports in the region.
Platinum Service
In line with the National Bank’s policy, which aims to provide distinguished and new services to customers and to raise the quality of banking services and solutions to the highest levels, the Bank worked to establish the “Platinum” department so that its elite customers would enjoy the utmost attention and appreciation by providing a range of exceptional services that meet their personal and financial requirements in a professional manner. And quick.
(Silver & Gold)*
TNB Mastercard is available 24/7, anywhere you are in the world. You can use it to withdraw cash from any ATM around the world, or to pay for your purchases online or via POS locally and internationally.
Debit Card*
Withdraw cash from over 700 ATMs for different banks in Palestine without any commission.
In 2017, the National Bank relaunched "Hayati" program and transformed it into an integrated banking program dedicated to meeting the comprehensive financial needs of Palestinian women. It became the first of its kind in the Palestinian banking market. The program provides all banking services, which include accounts of all kinds and all types of loans, in addition to credit cards and immediate deductions, with various facilities and preferential interest rates. It also provides its participants with checkbooks and cards with special designs bearing the program's color and logo.