Corona year at Bank Hapoalim: NIS 618 million dividend - Walla! Of money

2021-08-16T06:14:09.361Z

Net profit of NIS 1.42 billion, reduction of the balance of the provision for credit losses over the corona period and distribution of a dividend of NIS 617 million over 2020

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The corona year at Bank Hapoalim: a dividend of NIS 618 million

Bank Hapoalim presents a successful second quarter, with a net profit of NIS 1.42 billion and an improvement in all indicators in the financial statements.

In light of the results, it was decided to distribute a dividend for 2020, the year that was almost entirely in the shadow of the Corona limits: NIS 617 million, 30% of the net profit to be paid to shareholders

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Bank Hapoalim CEO Dov Kotler. Excellent report, and no less important: Dividend to shareholders also on the corona year (Photo: Gadi Dagon)

Net profit of close to NIS 2.8 billion in the first half of 2021

The following are key data from the financial statements for the second quarter of 2021:

• The Bank concludes the second quarter of the year with a net profit of NIS 1,419 million, compared with NIS 133 million in the corresponding quarter last year, most of which passed the first and almost full closure on the Israeli economy. Along with the growth in business activity, the increase in profit was due, among other things, to an improvement in the economic indicators that led to a reduction in the balance of the provision for credit losses due to the corona events.

• The rate of return on capital achieved by the Bank on net profit in the quarter was 14.5%, compared with 1.4% in the corresponding quarter last year.

• Results of the first half: The net profit in the first half of 2021 was NIS 2,773 million. The rate of return on capital on net profit in the first half was 14.1%.

• An improvement in the economic indicators led to a reduction in the provision for credit losses, and alongside recovery in the individual provisions, it led to a recording of income in the credit losses item in the amount of NIS 647 million in the quarter.

• The efficiency ratio (operating expenses from total revenues) in the second quarter of 2021 was 56.0%, compared to 57.9% in the corresponding quarter last year.

• The Bank's Board of Directors approved the distribution of a dividend to the Bank's shareholders in the amount of 30% of the net profit for 2020, in the amount of NIS 616.8 million.

The dividend will be distributed on 18.8.

Reuven Krupik, Chairman of Bank Hapoalim. Meanwhile, 2021 looks quite successful (Photo: Inbal Marmari)

Corona for growth

Side of the balance sheet data, Bank Hapoalim also shows growth data activities:

• Bank increased the total credit to the public provides customers during the second quarter of 2021 - a total credit to the public, net, totaled -323.8 billion, compared with -306.1 billion at the end of March 2021 - An increase of 5.8% during the quarter. In all, the workers completed an increase of 7.3% in the first half of the year.

• Growth in the credit portfolio in the quarter is reflected in an increase in all operating segments:

Business credit led the growth and grew by 10.4% in the second quarter. The increase was due to the Bank's strategic decision to increase the volume of activity in all sectors of the economy, especially in the real estate industry. Against the high demand in the housing market, in the second quarter the Bank provided its customers with NIS 4.3 billion in housing credit.

Commercial credit grew by 8.4% in the quarter.

• The Bank continued to increase the balance of off-balance sheet credit instruments (including frameworks and guarantees) for its customers by 3.1% during the quarter.

Simulation of the new Mishkan of Bank Hapoalim, near the La Guardia Interchange in Tel Aviv.

The move is planned for 2025 (Photo: Imaging Yashar Architects)

Higher equity than required and target

Indicators of financial soundness:

• The Bank continues to present very high soundness and stability indices: The capital attributed to the Bank's shareholders amounted to NIS 42.3 billion, compared with NIS 39.9 billion at the end of 2020, an increase of 6.1%. The liquidity coverage ratio remains high. At the end of the second quarter, it was 140%.

• High Tier 1 equity ratio - as of June 30, 2021, it amounted to 11.61%, which is higher than the minimum Tier 1 equity ratio required by the Bank of Israel, as well as the Board's capital target.

• The Bank's liquidity and deposits base continued to expand: Retail deposits totaled NIS 284.1 billion at the end of the second quarter, an increase of 3.4% compared to the end of 2020. Total public deposits have increased by 11.0% since the beginning of the year.

The report also reviews developments Recent significant events that Bank Hapoalim went through during the quarter:

The first is the acquisition of a building to be used in the offices of top management: During June 2021 the Board of Directors of Bank Hapoalim confirmed over the administrative headquarters of the Bank and their concentration in a central structure and advanced new Tel Aviv to be established by Vitania framework of an agreement signed with the company.

The project will coordinate the ten members of top management of the bank, including its subsidiaries in the Bank group and campus learning one building, located near the intersection LaGuardia, near major transportation center and stops existing and future train heavy and light.

the building will include work environment and innovative and advanced infrastructures and adjusted a unique facility for green building, emphasizing savings In energy and water, the move will enable significant efficiencies and future savings in the Bank's logistical operating expenses.The planned date for the transition is towards the end of 2025.

Succeeded even with the bet on the Israeli delegation to Tokyo: Krupik (right) and Kotler with the Olympic medalists (Photo:.)

The business strategy of the bank:

According to the bank, is committed to growth through banking renewable and fair to its customers - the bank's performance in the quarter reflect, according to the report, the implementation of the Bank's strategy adopted at the end of 2020 and principles are:

• The growth in banking activity - bank run growth volume of activity with Retail, commercial and business banking customers, while constantly improving the value proposition to the customer.

• Development of the new banking - the Bank will promote the development of new distribution channels for the banking services and products, with an emphasis on new digital distribution channels that rely on advanced data analysis capabilities and excellence in the user experience.

• Building an organizational infrastructure that supports growth - the Bank will work to initiate processes that will encourage a customer-focused, growth-supporting organizational culture and enable the improvement of delivery and time to market. The use of data and analytics will continue the process of expansion and deepening that began several years ago, including customer journeys supported by advanced data analysis.

The bank also reviews the support it provided to its customers during the Corona crisis, from freezing payments, through supporting businesses through the state-guaranteed loan fund to establishing service centers for the benefit of the elderly population and community involvement.

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Source: walla

All business articles on 2021-08-16