Hapoalim Q3 profit up 14%

Bank Hapoalim, headed by Yadin Antebi, opened the reporting season for Israeli banks as financial statements showed a 14% growth in third-quarter net profits to NIS 1.9 billion. The increase compared to the third quarter of 2023 is mainly due to the higher interest rate environment, which led to growth in interest income, along with lower credit loss expenses. In the third quarter of 2023, banks were directed by the Bank of Israel to take general provisions against credit losses.

However, the net profits of the third quarter are 14% lower than the profits of the second quarter of the current year, and the main reason for this is the increase in credit losses compared to that quarter.

Returns on Bank Hapoalim shares in the third quarter of this year amounted to 13.6% on an annual basis, which is a low percentage compared to the returns recorded by the bank’s competitors in recent quarters, but still historically high.

Interest income in the third quarter increased by 13%, reaching NIS 9.6 billion. The reason for the sharp rise in interest income is a combination of rising interest rates and growth in the credit portfolio. Net interest income amounted to 4.58 billion shekels, an increase of 14% compared to the corresponding quarter.

The bank’s total credit loss expenses in this quarter amounted to NIS 406 million, i.e. 39% lower than in the corresponding quarter, but as we mentioned, in the corresponding quarter the bank made a general provision in accordance with the instructions of the Bank of Israel for all banks. .

The Board of Directors of Bank Hapoalim announced the distribution of dividends of 40% of the net profits of the third quarter, of which NIS 512 million in cash and the remainder in the form of share buybacks worth NIS 250 million, representing the second part of the share buyback program announced in the previous quarter.

Published by Globes, Israel Business News – en.globes.co.il – on November 18, 2024.

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