Hapoalim reports strong results
Bank Hapoalim reported its fourth quarter and full year result Tuesday morning. The bank posted a net profit of NIS 2.74 billion for 2014, compared with NIS 2.548b. for 2013, representing a rise of 7.5 percent. In the fourth quarter, the bank’s net profit was NIS 478 million, compared with NIS 633m. 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 Monday, the bank posted a provision for a streamlining plan, mainly based on early retirement, of NIS 390m. 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 7.66b. in 2014, compared with NIS 7.4b. 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 425m., from NIS 874m. in 2013. In the fourth quarter, the credit loss expense was NIS 363m., compared with NIS 59m. in the in the corresponding quarter of 2013. Operating and other income totaled NIS 5.34b. in 2014, compared with NIS 5.24b. in 2013, representing a rise of 1.9%. Operating and other expenses totaled NIS 9.14b. in 2014, compared with NIS 9.02b. in 2013, representing a rise of 1.3%. Salary costs fell 2.5%. Bank Hapoalim recorded a provision of NIS 196m. against the bank’s business with US customers. Shareholders’ equity totaled NIS 31,361m. at the end of 2014, compared with NIS 28,834m. 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 70m. The bank distributed a dividend of NIS 412m. 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,” he said. “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,” he added. “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 8.5m. in 2014. This includes a basic salary of NIS 2.08m. and bonuses of NIS 2.9m. Chairman Yair Seroussi’s compensation cost was NIS 7.88m. in 2014.