Analysis Of Palestinian

Electronic copy available at: http://ssrn.com/abstract=1329588 1 Financial Analysis for

Bank of Palestine & Jordan Ahli Bank

(CAMEL Analysis)

( from 2004 to 2006)

Prepared By:

Osama K. Najjar

Palestine

May 2008 Electronic copy available at: http://ssrn.com/abstract=1329588 2

Contents: Page

Introduction…………………………………………...……….3

Palestine Economic analysis………………………….……….3

Jordan Economic analysis……………………………………..5

Banking sector analysis in Palestine………………….………..6

Banking sector analysis in Jordan…………….………………..7

CAMEL analysis for Jordan Ahli Bank:…………………… …8

- Background of the bank…………………...8

- Assessment………………………………...9

- Asset Quality ………………………..........12

- Loan default Risk…………………………13

- Capital Adequacy…………………………14.

- Liquidity…………………………………..15

- Profitability………………………………..15

- Management……………………………….16

- Palestine operations………………..............16

CAMEL analysis for Bank of Palestine……………………..….18

- Background of the bank & Management…...18

- Assessment………………………………….18

- Asset Quality…………………………….….22

- Loan default Risk……………………………22

- Capital Adequacy……………………………23

- Liquidity……………………………………..24

- Profitability………………………………….24

Compare the basic information & Financial Data………..…….25

References…………………………………………… .. 26

3

Introduction

At the beginning of our study we will focus on economic analysis for Jordan and Palestine state. Then we will add additional analysis for the banking sector in both of Palestine and Jordan.

The main target for this study to analysis in details the performance for Jordan Ahli bank and Bank of Palestine and we will use CAMEL analysis to reach to fair stock price depnding on fundemental analysis.

And will will compare the both of banks during this study.

Palestine Economic analysis

In 2003, the Palestinian economy stabilized after two years of sharp contraction. The World Bank estimates that per capita Gross Domestic Product increased about one percent in 2003. The stabilization occurred against a...