Listed Banks on the Palestine Stock Exchange Achieve Profits of 45.5 Million USD in the First Half of 2025

SadaNews - The banking sector listed on the Palestine Stock Exchange has managed to recover and achieve profit growth in the first half of 2025 compared to the first half of 2024, as indicated by the financial data published by Dr. Samih Al-Attoot. The combined profits of seven banks listed on the Palestine Stock Exchange reached approximately 45.5 million USD, with a growth rate of 384% compared to the first half of 2024.

All banks are trading at market prices lower than their book values, and the following table shows the market prices of the banks as of 19/10/2025 compared to their book values as of 30/6/2025:

The stock prices of the banking sector listed on the Palestine Stock Exchange are trading at attractive future price-to-earnings ratios, especially since the expected performance of the banking sector in the coming periods will be good, following banks setting aside significant provisions for the past two years, 2023 and 2024.

It is important to note that the fair value of most banks listed on the Palestine Stock Exchange is higher than the market value, especially since the loan-to-deposit ratio is at very safe levels below 70%, and the banks can expand in lending, which will lead to a significant increase in profits in the coming periods.

Notably, the analysis shows that net cash flows from operating activities are in the positive range and have seen significant growth. Most studies and models that rely on cash flows to calculate the fair value of shares lead to an important conclusion that most shares in the banking sector listed on the Palestine Stock Exchange are trading below their fair values.