Bank Hapoalim (TASE: POLI) issued its financial report for 2012 today, which saw net profit fall 7.4% to NIS 2.543 billion last year from NIS 2.746 billion in 2011.
Income from financing fell 6.7% to NIS 8.41 billion while income from fees and other sources rose slightly to NIS 5.22 billion, while the bank recorded an overall 4.3% rise in income to NIS 13.63 billion enabling it to maintain its position as Israel's largest bank.
Return on equity reached 10.1% in 2012, compared with 12.0% in 2011. The Bank’s total capital adequacy ratio reached 15.7% at the end of 2012, compared with 14.1% at the end of 2011, while core Tier 1 capital ratio continued its trend of improvement and rose to 8.9% at December 31, 2012 compared with 7.9% at the end of 2011.
Total consolidated assets as of December 31, 2012 totaled NIS 376.4 billion, compared with NIS 356.7 billion at the end of 2011, an increase of 5.5%. Shareholders' equity totaled NIS 26,755 million as at December 31, 2012, compared with NIS 23,819 million at the end of 2011, an increase of 12.3%.
Net credit to the public totaled NIS 249.2 billion compared with NIS 246.5 billion at the end of 2011, a rise of 1.1%, driven primarily by increases in the retail and commercial segments.
The salary cost of CEO Zion Kenan amounted to NIS 8.1 million in 2012 including a salary of NIS 2.13 million, a NIS 3.76 million bonus and NIS 1.49 million share-based grant. Chairman Yair Seroussi earned NIS 8.39 million in 2012 including NIS 1.95 million salary, NIS 3.76 million bonus and a NIS 1.14 million share-based grant.
Seroussi said, "In 2012, Bank Hapoalim successfully completed the three-year Strategic Plan that we presented to the market in late 2009. We are proud to report that Bank Hapoalim achieved the goals that we set for ourselves, including: positioning Bank Hapoalim as Israel's leading financial institution; stabilizing the bank on a path of growth; and achieving attractive returns for shareholders."
He added, "Our determined and accurate implementation of the strategic plan served as the foundation of the Bank's success in 2012. During the year, the bank strengthened its key revenue drivers across all business divisions. At the same time, we conducted a significant streamlining process in order to enhance the Bank's competitive edge and adjust to the increasing level of competition in the banking industry. It is noteworthy to mention the recognition Bank Hapoalim received as the leading financial institution in Israel. Especially from prestigious industry publications such as The Banker, Euromoney and Global Finance, who selected Bank Hapoalim as the Best Bank in Israel for 2012."
Kenan said, "The Bank's financial results for 2012, which was a challenging year for the global economy, the Israeli economy and Israeli banking sector, indicate above all that Bank Hapoalim continues to lead the Israeli banking system. I am proud to say today that we met all our targets in the three-year strategic plan we introduced in late 2009."
Published by Globes [online], Israel business news - www.globes-online.com - on March 21, 2013
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