Bank Hapoalim posts NIS 812m Q2 profit

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

Return on equity in the quarter was 9.5%, while the bank's tier-1 capital adequacy ratio rose to 11.35%.

Bank Hapoalim (TASE: POLI), headed by CEO Arik Pinto, reported its second quarter results this morning. The bank posted a net profit of NIS 812 million for the quarter, 27% less than in the corresponding quarter of 2016, in which the bank's results were affected by one-time revenue items from the sale of shares in Visa, the sale of loans, and credit loss recoveries. In comparison with the previous quarter, net profit in the second quarter of 2017 rose 6%.

The bank's return on equity in the second quarter of 2017 was 9.5%, which compares with 9.2% in the previous quarter and 13.9% in the corresponding quarter of 2016.

The bank continue to improve the quality of its loan portfolio, with non-performing loans at 0.94% of the portfolio at the end of the second quarter of 2017, down from 1.27% at the end of 2016. Since the end of 2011, the proportion of non-performing loans in Bank Hapoalim's portfolio has fallen 68%.

Bank Hapoalim's board of directors has declared a dividend totaling NIS 325 million, 40% of the second quarter profit.

The bank's tier-1 capital adequacy ratio at the end of the second quarter was 11.35%, which compares with 11% at the end of 2016. The bank's target ratio for the end of the second quarter was 10.75%, while the ratio required by the Bank of Israel is 10.2%. The overall capital adequacy ratio at the end of the second quarter of 2017 was 15%, unchanged from the end of 2016.

Published by Globes [online], Israel business news - www.globes-online.com - on August 15, 2017

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

Arik Pinto  photo: Tamar Matsafi
Arik Pinto photo: Tamar Matsafi
Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018