Hapoalim raises dividend rate

Arik Pinto  photo: Tamar Matsafi
Arik Pinto photo: Tamar Matsafi

From the first quarter of 2017, Bank Hapoalim will distribute 40% of its net profit as a dividend, instead of 30% previously.

Bank Hapoalim (TASE: POLI) announced a change in its dividend policy this morning. From the first quarter of 2017, the bank will distribute 40% of its net profit as a dividend, instead of the 30% distributed previously. The bank has received permission from the supervisor of banks to raise its dividend distribution. In October last year, the bank received permission to raise its dividend from 20% of profit to 30%.

80% of Bank Hapoalim's shares are held by the public at large, and 20% by controlling shareholder Shari Arison.

Bank Hapoalim, which was founded 95 years ago, is marking 20 years since it was privatized by the State of Israel and sold to the Arison family. Since privatization, it has distributed dividends totaling NIS 12.7 billion. In the same period, Bank Leumi (TASE: LUMI) distributed NIS 10.6 billion, Mizrahi Tefahot Bank (TASE:MZTF) NIS 1.7 billion, and Israel Discount Bank (TASE: DSCT) NIS 250 million.

Bank Hapoalim's dividend policy is conditional on meeting the capital adequacy targets set for it by the Bank of Israel. The capital adequacy ratio target that Bank Hapoalim set for itself for the end of 2017 is 10.75%. The target set by the Bank of Israel is 10.50%. Bank Hapoalim's financial statements for 2016 show that it already has a higher capital adequacy ratio, of 11.01%.

Bank Hapoalim CEO Arik Pinto said today, "The permit to raise the dividend to 40% of net profit is testimony to Bank Hapoalim's financial strength and to its ability to create value for investors, consistently and reliably, quarter after quarter. It is important to remember that the general public, which holds 80% of the shares in the bank, is the main beneficiary of the return that the bank yields to its investors. As we have declared in the past, we will strive to raise the dividend rate to 50% of net profit, while constantly maintaining our financial strength."

Published by Globes [online], Israel business news - www.globes-online.com - on April 25, 2017

© Copyright of Globes Publisher Itonut (1983) Ltd. 2017

Arik Pinto  photo: Tamar Matsafi
Arik Pinto photo: Tamar Matsafi
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