Bank Hapoalim (TASE: POLI), headed by Dov Kotler, posted a net profit of NIS 3 billion in the first half of this year, 8% more than in the first half of 2021. The net profit for the second quarter was NIS 1.34 billion, 5% below the profit in the corresponding quarter of 2021. The decline arose from NIS 647 million in reversals of credit loss provisions last year as debt recovery improved, the bank explained in its second quarter financials released this morning. In the second quarter of this year, credit loss provisions rose by NIS 91 million.
RELATED ARTICLES
Bank of Israel raises interest rate by 0.5%
Mortgage taking in Israel fell in July
The banks return on equity in the second quarter of this year was 12.3%, which compares with 13.8% in the corresponding quarter. The big news for Bank Hapoalim shareholders, however, is that the bank is once again distributing a dividend after two quarters in which it refrained from doing so in order to be able to grow its credit portfolio. Credit growth had slowed because the bank had reached the ceiling allowed by the Bank of Israel. Bank Hapoalim will distribute a dividend of NIS 403 million, 30% of its second quarter profit. The dividend will be paid on September 7. Bank Hapoalim’s regular dividend policy is to distribute 40% of its profits, but nevertheless the current distribution will be welcomed by shareholders.
The non-payment of dividends for two quarters has proved worthwhile for the bank: total net credit to the public was NIS 372 billion at the end of the second quarter, representing 5.5% growth since the beginning of the year.
As demand for home loans remained strong, Bank Hapoalim’s mortgage loan portfolio grew by NIS 3.2 billion, or 3.2%, in the second quarter, to NIS 123 billion. Since the beginning of the year, the portfolio has grown by 7.4%.
The Bank of Israel raised its interest rate from 0.1% to 0.75% in the second quarter (and to 1.25% in July). Bank Hapoalim’s interest income totaled NIS 3.2 billion in the second quarter, up 28% from NIS 2.5 billion in the second quarter of 2021. The rise in the rate of inflation also affected the bank’s results. Changes in the Consumer Price Index added NIS 516 million to its income in the second quarter of 2022, which compares with NIS 190 million in the corresponding quarter.
Published by Globes, Israel business news – en.globes.co.il – on August 15, 2022.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2022.
For all the latest Business News Click Here
For the latest news and updates, follow us on Google News.
Denial of responsibility! NewsBit.us is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.
