Bank Hapoalim raises dividend payout to 40% of profit
Bank Hapoalim said on Tuesday it would raise the amount of dividend it pays out to up to 40% of net profit from 30% after the banking regulator gave a green light to make the change.
Hapoalim, Israel’s largest lender, said in a statement that the change would take effect in the first quarter of 2017, and that it hopes to be allowed to raise its dividend payout even further.
“As we stated in the past, we will act to increase the dividend rate to 50% of net profit, while constantly ensuring financial strength,” said Chief Executive Arik Pinto.
The bank’s fourth-quarter profit suffered a oneoff hit from a US tax probe, dropping to 138 million shekels from 586m. shekels a year earlier. Excluding one-time items net profit was 937m. shekels.
80% of Hapoalim’s shares are held by the public at large, and 20% by controlling shareholder Shari Arison.
Hapoalim, which was founded 95 years ago, is marking 20 years since it was privatized by the State of Israel and sold to the Arison family. Since privatization, it has distributed dividends totaling NIS 12.7 billion. In the same period, Bank Leumi distributed NIS 10.6b., Mizrahi Tefahot Bank NIS 1.7 b., and Israel Discount Bank NIS 250m. (Reuters/Globes)