The Bank Hapoalim (TASE: POLI) board of directors, headed by chairman Yair Seroussi, today decided to increase the proportion of its net profit paid as a dividend to its shareholders to 20%. Bank Hapoalim said that the decision was taken after the bank had obtained permission for the measure from Supervisor of Banks David Zaken.
Up until now, the Supervisor of Banks allowed Bank Hapoalim to distribute only 15% of its annual net profit as a dividend to its shareholders. Bank Hapoalim said that the board's decision was consistent with its policy of distributing up to 30% of its net profit as a dividend.
Bank Hapoalim ended 2014 with a NIS 2.74 billion net profit, after having earned a NIS 5 billion net profit in 2012-2013. Over the past four years, the bank distributed an aggregate NIS 1.16 billion in dividends (about NIS 289 million a year).
Bank Hapoalim's profits suitable for distribution amount to the huge sum of NIS 19.4 billion, while its market cap is NIS 26.2 billion. The board also decided to increase its planned tier-1 capital ratio to 10.75% by the end of 2017.
The Supervisor of Bank's decision to slightly relax the restraint it enforces on Bank Hapoalim was greeted favorably by Tel Aviv Stock Exchange (TASE) investors, who pushed the bank's share price up 2%, following a 0.5% drop the preceding day. The Bank Hapoalim share is currently traded at a 0.82 multiple on its equity.
Published by Globes [online], Israel business news - www.globes-online.com - on April 20, 2015
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