Palestinian banks secure a single place among the Arab world’s 100 largest banks

Bank of Palestine was the only Palestinian lender to make First Bank’s ranking of the 100 largest Arab banks at end-March 2026, placing 71st with total assets of USD 10.90 billion, up 2.4 per cent quarter-on-quarter from USD 10.65 billion at end-2025.

Despite the relatively limited weight of the Palestinian banking sector compared with the largest Arab banks, several Palestinian banks secured relatively strong positions outside the top 100, with most improving their rankings during Q1 2026, supported by asset growth.

Arab Islamic Bank moved up two places to 111th at end-March 2026, from 113th at end-2025, alongside quarter-on-quarter asset growth of around 1.8 per cent to USD 1.98 billion, from USD 1.94 billion.

Palestine Islamic Bank also moved up one place to 113th at end-March, from 114th at end-2025, after its assets increased by around 1.8 per cent quarter-on-quarter to USD 1.82 billion, compared with USD 1.78 billion.

Quds Bank advanced one place to 114th, from 115th at end-2025, supported by asset growth of around 5.5 per cent during Q1 2026 to USD 1.76 billion, from USD 1.67 billion.

Similarly, The National Bank moved up one place to 115th, from 116th at end-2025, despite a decline of around 2.8 per cent in its assets during the first three months of 2026 to USD 1.44 billion, from USD 1.48 billion.

Palestine Investment Bank also rose one place to 117th at end-March 2026, from 118th at end-2025, with its assets edging up 0.77 per cent quarter-on-quarter to USD 890 million, from USD 883 million.

Safa Bank advanced one place to 122nd at end-March, from 123rd at end-2025, despite a marginal decline of around 0.98 per cent in its assets to USD 366 million, from USD 370 million.

Turning to H1 2026 results, the picture appears more positive in terms of asset growth, with all Palestinian banks covered by the analysis recording increases in their asset bases during the period, indicating continued expansion in the sector despite the challenges facing the local market.

Quds Bank led Palestinian banks in asset growth during H1 2026, with its assets rising by around 14.3 per cent to USD 1.91 billion at end-June 2026, making it the fastest-growing bank by assets among the Palestinian banks covered by the analysis.

Bank of Palestine also recorded asset growth of 8.8 per cent during H1 2026, taking its total assets to USD 11.59 billion at end-June 2026, reinforcing its position as the largest Palestinian bank by assets and maintaining a wide gap over other local banks.

Palestine Islamic Bank’s assets increased by around 7.6 per cent over the same period to USD 1.92 billion, while Arab Islamic Bank recorded growth of 7.5 per cent, taking its assets to USD 2.09 billion at end-June 2026.

The National Bank’s assets also grew by around 6.4 per cent during H1 2026 to USD 1.57 billion, while Palestine Investment Bank’s assets rose by around 5.4 per cent to USD 931 million at end-June.

Safa Bank also recorded asset growth of around 2.2 per cent during the first half of the year, reaching USD 378 million at end-June 2026.

These developments highlight a clear contrast in the Palestinian banking sector. While only one Palestinian bank ranks among the 100 largest Arab banks, most continue to expand their asset bases and improve their regional positions.

However, this growth will need to be sustained over several periods before it materially reshapes their standing in the Arab banking rankings, given the wide asset gap with the region’s largest banks.