Bank Hapoalim (TASE: POLI) reported net profit of NIS 607 million (NIS 0.46 per share) in the second quarter of 2012, down 14% from NIS 659 million in the preceding quarter, and down from NIS 712 million in the corresponding quarter of 2011. Despite the fall in profitability, Hapoalim easily remains Israel's most profitable bank with its closest rival Bank Leumi (TASE: LUMI) reporting net profit of NIS 280 million in the second quarter of 2012, a plunge of 50.4%.
Bank Hapoalim reported return on equity reached 10.2%, on an annualized basis, compared with 11.3%, in the preceding quarter, and 13.2% in the corresponding quarter. Capital adequacy ratio continued to improve and totaled 14.8% at the end of the second quarter compared with 14.1% at the end of 2011. Core Tier 1 capital ratio rose to 8.3% at the end of the second quarter compared with 7.9% at the end of 2011.
The bank's revenue totaled NIS 3.3 billion in the second quarter compared with NIS 3.36 billion in the corresponding quarter of 2011 and NIS 3.45 billion in the preceding quarter. Financing revenue fell to NIS 2.04 billion and fees and other revenue totaled NIS 1.26 billion in the second quarter, down from NIS 1.31 billion in the preceding quarter.
The bank's results beat the "Globes"-Psagot analysts consensus of NIS 3.29 billion income and NIS 0.45 per share profit.
Provision for credit losses in the second quarter of 2012 totaled NIS 344 million compared with NIS 303 million in the previous quarter. The rate of provision as a percentage of credit to the public reached 0.55% at the end of the second quarter compared with 0.49% in the previous quarter. The increase resulted from a rise in the provisions for debt examined on an individual basis.
Published by Globes [online], Israel business news - www.globes-online.com - on August 30, 2012
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