Bank Hapoalim (TASE: POLI) reported its fourth quarter 2014 and full year result this morning. The bank posted a net profit of NIS 2.74 billion for 2014, compared with NIS 2.548 billion for 2013, representing a rise of 7.5%. In the fourth quarter, the bank's net profit was NIS 478 million, compared with NIS 633 million in the corresponding quarter of 2013.
The bank's return on equity was 9.0% in 2014, compared with 9.2% in 2013. As reported in "Globes" yesterday, the bank posted a provision for a streamlining plan, mainly based on early retirement, of NIS 390 million.
Bank Hapoalim's tier 1 capital ratio in Basel 3 terms was 9.3% at the end of 2014, compared with 9.1% on January 1, 2014. Total capital adequacy ratio in Basel 3 terms was 14.6% at the end of 2014, similar to the ratio on January 1, 2014.
Financing profit from regular activity totaled NIS 7.66 billion in 2014, compared with NIS 7.4 billion in 2013, representing a rise of 3.65. The financing spread was 2.17% in 2014, compared with 2.12% in 2013.
The credit loss expense shrank in 2014 to NIS 425 million, from NIS 874 million in 2013. In the fourth quarter, the credit loss expense was NIS 363 million, compared with NIS 59 million in the in the corresponding quarter of 2013.
Operating and other income totaled NIS 5.34 billion in 2014, compared with NIS 5.24 billion in 2013, representing a rise of 1.9%. Operating and other expenses totaled NIS 9.14 billion in 2014, compared with NIS 9.02 billion in 2013, representing a rise of 1.3%. Salary costs fell 2.5%.
Bank Hapoalim recorded a provision of NIS 196 million against the bank's business with US customers.
Shareholders' equity totaled NIS 31,361 million at the end of 2014, compared with NIS 28,834 million at the end of 2013, an increase of 8.8%.
The bank's board of directors decided on a dividend of 15% of the fourth quarter 2014 profit, amounting to NIS 70 million. The bank distributed a dividend of NIS 412 million on its 2014 profits.
Bank Hapoalim CEO Zion Kenan said, "Bank Hapoalim continues to lead the Israeli banking system in professionalism while constantly improving the level of service to our customers.
"In 2014 the organization expanded its banking activity even as we pushed harder on our efficiency program. These efforts position Bank Hapoalim as an efficient and competitive bank.
"The bank continued to increase the number of retail clients, lead infrastructure and corporate financing, grew steadily in the commercial banking segment, in which we increased our market share and achieved impressive growth in revenue and number of customers.
The bank continues to be committed to the small business sector. In 2014 we improved the value proposition, built innovative products, and provided constant support in funding and consulting this customer segment.
"Bank Hapoalim's management is the best professional team in the industry in Israel. The professionalism and dedication of employees and managers is the largest and most important asset of the bank. We continued to develop and foster labor relations. The Employee Union is an essential partner in leading the bank to these impressive results."
Kenan's total compensation cost was NIS 8.5 million in 2014. This includes a basic salary of NIS 2.08 million and bonuses of NIS 2.9 million. Chairman Yair Seroussi's compensation cost was NIS 7.88 million in 2014.
Published by Globes [online], Israel business news - www.globes-online.com - on March 10, 2015
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