Bank Hapoalim: How many billions has it earned since the beginning of 2022?
Bank Hapoalim publishes its financial reports for the second quarter of 2022: the net profit in the first half of the year was NIS 3 billion compared to NIS 2.8 billion in the corresponding period last year.
will distribute a dividend of more than NIS 400 million in September
Monday, August 15, 2022, 08:18 Updated: 09:04
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Net profit of NIS 1.3 billion for the second quarter - NIS 3 billion from the beginning of 2022 (Photo: ShutterStock)
Reuven Krupik, Chairman of "Hapoalim" (Photo: Inbal Marmari)
Bank Hapoalim today publishes the financial reports for the second quarter of 2022, including profits of approximately NIS 1.3 billion, which, together with the profits of the first quarter, bring the bank to a profit line of approximately NIS 3 billion in the first half of 2022.
Other prominent items in the bank's reports:
• The yield Capital on net profit was 12.3% in the quarter
• The bank announced a dividend distribution of NIS 403 million
The bank also notes that it continued a responsible growth trend, paying attention to macroeconomic developments and the uncertainties in the markets: the credit portfolio has grown since the beginning of the year at a rate of 5.5% while maintaining Quality and strong credit indicators
• The efficiency ratio continued to improve in the second quarter as well and amounted to 48.8%
• The bank continues to present high strength and stability indicators: Tier 1 capital ratio of 11.14% and total capital ratio of 14.45%
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Dov Kotler, CEO of "Hapo'alim" (Photo: Gadi Dagon)
Main data from the financial statements for the second quarter of 2022:
• The net profit in the first half of the year was NIS 2,997 million compared to NIS 2,773 million in the corresponding period last year.
The rate of return on capital in the first half was 13.9% compared to 13.7% in the corresponding period last year.
• The bank concludes the second quarter of the year with a net profit of NIS 1,343 million compared to NIS 1,419 million in the corresponding quarter.
It should be emphasized that the corresponding quarter was also positively affected by income from credit losses (in the amount of
million NIS due to an increase in the scope of recovery).
-15.7% compared to the corresponding quarter and amounted to NIS 4,088 million, compared to NIS 3,533 million in the corresponding quarter. The increase reflects the growth in the bank's core activity, as well as the effect of the change in the index rate and the increase in interest rates of the central banks.
• The quality of the bank's credit portfolio continued to be reflected in a variety of parameters, including low expenses in the credit losses section: in the second quarter, a net expense was recorded in the credit losses section in the amount of NIS 91 million.
• The ratio of credit to the public that does not accrue interest income (NPL) remains low and stood at a rate lower than 0.9% in the quarter.
• The efficiency ratio (operating expenses over total revenues) continues to show further improvement and expresses the increase in revenues and scope of activity in the face of maintaining spending discipline and stood at 48.8% in the second quarter of 2022 compared to 54.2% in 2021 and 56.0% in the corresponding quarter last year.
• The bank continues to implement the strategy it adopted for growth in the core business while taking an approach that balances responsible growth, profitability and risk appetite while managing effective capital.
• This approach is also supported by paying attention to possible negative developments of global risk factors which are manifested at this stage in high inflation rates and a possible slowdown in global economic activity.
• Total credit to the public, net, at the end of the second quarter amounted to NIS 372.0 billion, compared to NIS 352.6 billion at the end of 2021 - an increase of 5.5% since the beginning of the year, which is an increase of NIS 19.4 billion.
• The growth in the credit portfolio in the quarter is expressed in an increase in the number of activity sectors:
against the background of continued high demand in the housing market, during the second quarter the bank continued to increase housing credit to its customers to the extent of approximately NIS 3.8 billion, which is an increase of approximately 3.2% during the quarter. The
business credit grew during the second quarter by 2.6%
• The bank continues to present high indicators of strength and stability: the capital attributed to the bank's shareholders amounted to NIS 44.2 billion at the end of the quarter compared to NIS 42.7 billion at the end of 2021, an increase of 3.5%.
• The bank's Tier 1 equity ratio was 11.14% at the end of the quarter.
- the bank's board of directors decided in the second quarter of 2022 to return to the outline of regular dividend distributions alongside continuing to maintain balanced growth, thanks to the effective management of capital and risk assets while relying on internal sources only.
The distributions will be subject to the bank's results, developments in the markets and macroeconomic conditions, the effect of the implementation of regulatory provisions and in accordance with tests according to law.
Accordingly, at the time of approval of the second quarter reports, the bank's board of directors announced the distribution of a dividend in the amount of NIS 403 million, which is about 30% of the bank's net profit for the second quarter of the year and which will be paid on September 7, 2022.