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Palestine Islamic Bank earns a pretax income of $0.99 million in 1H 2011

2011-08-16

The Palestine Exchange (PEX) received a draft of reviewed interim condensed financial statements from Palestine Islamic Bank (ISBK). The PEX disclosure rules in place give all of the PEX listed companies a period of 45 days to report their first half interim financial statements as reviewed by their independent external auditor. Their disclosure has been published on the PEX website (www.pex.ps) and emailed to PEX member securities firms in conjunction with this press release.

The disclosed draft financials were not approved by the Palestinian Monetary Authority (PMA) and there may be some material changes. The bank must disclose the reviewed financials by the independent external auditor once approved by the PMA.

The disclosed information includes: an unsigned Independent Accountants" Review Report, the Statement of Financial Position, a Statement of Income and Comprehensive Income, Changes in Equity Ownership, the Statement of Cash Flows, a Statement of Sources & Uses of Gains that do not conform to Sharia Rules, and Notes to the interim financial statements (24 notes). The company also provided its interim financial statements via the approved electronic form of disclosure applicable to the Banking & Financial Services Sector. The interim report also includes the additional information required by Article (38/2) of the PEX disclosure rules in place concerning management, issued shares, material changes and significant events that may have affected financial performance during the first half of the year.

According to company data for the first half of this year, net profit before taxes reached 993,545 USD, compared with a net loss of (233,275) USD from the first half of 2010. Total assets of the company have reached 370,180,233 USD as of June 30, 2011, compared to total assets of 357,433,736 USD as of December 31st, 2010, a net increase of 3.6%. Total liabilities of the company have reached 115,192,051 USD as of June 30, 2011, compared to total liabilities of 110,362,149 USD as of December 31st, 2010, a net increase of 4.4%. Equity of Unrestricted Investment Accountholders totaled 206,728,280 as of June 30, 2011, compared with 199,025,230 USD at the end of 2010, and net Ownership Equity of the company has reached 48,259,902 USD of June 30, 2011, compared with a Net Ownership Equity of 48,046,357 USD as of December 31st, 2010, a net increase of 0.4% in the last six months.

Within the conclusion in the unsigned Independent Auditors’ Review Report (Ernst & Young), the following was conveyed: Based on our limited review, nothing has come to our attention that causes us to believe that the accompanying interim condensed financial statements are not, in all material respects, prepared in accordance with the accounting polices outlined in note #2. An additional paragraph, “Emphasis of Matters”, was included after the conclusion paragraph and it conveyed: Without qualification, on the basis of matters explained in note #12, ISBK did not have tax clearance for the years 2005 through 2010. Moreover, they have tax provisions for 2005 through June 30th, 2011 for all branches except the Gaza branches.