Hapoalim posts record annual profit, sets targets

The bank, Habwailim, which is run by Yaden Antibi, today reported a net profit of 7.6 billion New for the full year 2024. The net profit grew by 3.7 % compared to the previous year, and was negatively affected by the expenses recorded by the volunteer retirement plan announced by the bank at the end of last year. This is an enlarged “other expenses” element by 600 million NIS. As a result of the plan, the net profit in the fourth quarter of the year decreased by 12 % to 1.56 billion NIS.

There is also a modernity in the reports published by Habuelm Bank this morning (Monday). For the first time in years in the banking system, the bank offers measurable goals for the next two years. According to the bank’s plans, it will make a clear profit ranging between 8.5 and 9.5 billion NAN at 2025 and 2026. It is also expected to be registered on the capital from 14 to 15 % (which is compared with 13.8 % in 2024, 15 % and 14.8 % in the previous two years).

Another attention point is that the bank plans to distribute half of its profits in each of the next two years, but this of course is subject to the agreement of the Bank of Israel, because the maximum distribution allowed by the bank’s supervisor is 40 % of the bank’s profits. If the supervisor, Daniel Hehashvili, allows such a distribution, this means the distribution of profits of about 18 billion New two years.

Net Benefits income 17 billion NIS

The net interest revenues grew by 5.4 % in 2024 to 17 billion NIS. Among the reasons mentioned by the bank to this increase in income is the high consumer price index, which is linked to part of its loans. The bank's activity in the capital market also strengthened its profit. The stocks and re -purchasing the bank from its bonds made gains of 260 million NIS for this year.

The expenses of the HPOALIM credit losses decreased to 693 million NA, which represents a 63 % decrease compared to 2023. However, it should be emphasized that in the last quarter of that year, banks have developed heavy general provisions at the request of the supervisor, due to serious concerns about the consequences of the war that were destroyed at that time. Credit loss expenses as a percentage of total credit for the public were relatively low, by 0.16 %, a decrease from 0.46 % in the previous year.

The Governor of the Bank of Israel, Prince Yaron and many other higher figures in the economy, have expressed concern about increasing the risk of the housing market. Habwailim Bank is shortly handled the case. In the construction and real estate department, it shows that the war -in -law has led to a shortage of workforce, which spanned the average time of construction and slow new buildings. However, it describes a “degree of recovery” in the industry during the year 2024, noting that “during the year there was a significant increase in the sales rate” thanks to the promotional offers of financing “used by developers to enhance sales (support for financing costs by developers and/or a large postponement of payments to the date of delivery).”

These promotions, known as 20/80 or 10/90, in which the customer pays a small part of the cost of the apartment at first and comes out a mortgage to cover the balance when it is delivered to it, may be, according to various estimates, a source of regular risks that are still very difficult to determine. Hapoalim notes that high interest rates are also a potential threat to the level of risk in industry, as well as the continuous rise in construction costs, as well as workers ’lack and the corrosion of the purchasing power of families.

The bank says it increases judgments and monitors developments. The report states that the bank “works to determine the direct effects on the borrower's portfolio, through continuous monitoring, and if necessary, re -classification and/or classification of loans as a problem debt, taking into account the current situation of borrowers.” He also adds that the bank “made adjustments at the account of the group's item, which led to an increase in the rate of provisions in this sector, to reflect the potential impact of these trends on the risk of credit in it.”

There is no relief on the fees

From the consumer point of view, there was no good news in the graphic element. It reached 4.05 billion New, but at least this number is like this for the previous year, and it barely grown for the items of income and other expenses of the bank. Among the elements that increased the fees that are imposed on securities activities, an increase of 16 % to 783 million NA in 2024. On the other hand, the account management fees that the bank received by 3.7 % decreased to 856 million New.

As mentioned, at the end of last year, the bank has announced the competency program that relies on volunteer retirement for years from 2025 to 2028. This is a program that banks say it aims to improve efficiency and operational procedures as part of the bank's preparation for changes in the banking world. The bank's workforce is reduced by 770 employees. According to the results of 2024 published today, the bank's workforce reached 8354 employees at the end of last year, which compared to 8,104 at the end of the previous year.

It was published by Globes, Israel Business News – En.globes.co.il – on March 3, 2025.

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