Bank Otzar Hahayal's profits rose 4.1% to NIS 30.1 million in 1999
Bank Hapoalim will have to sell its controlling interest in Bank Otzar Hahayal by January 2004. This emerges from Bank Otzar Hahayal's financial statements published yesterday.
Under the banking sector reform program of 1993, the government decided that Bank Hapoalim must sell its holding in Bank Otzar Hahayal. To facilitate the sale, equalization of rights was carried out, and Bank Hapoalim bought the controlling interest in Bank Otzar Hahayal from several bodies affiliated with the defense establishment. From Bank Otzar Hahayal's financial reports it emerges that the Supervisor of Banks approved the deal on condition that Bank Hapoalim continue to hold the controlling interest in Otzar Hahayal only four years following approval of the deal. Bank Hapoalim currently owns 66% of Bank Otzar Hahayal.
Bank Otzar Hahayal's net profit increased 4.1% to NIS 30.1 million in 1999. The rise in profit comes mainly from a fall in allowances for doubtful debts. Yield on capital fell from 7.7% in 1998 to 7.5% in 1999.
Bank Otzar Hahayal's balance sheet increased 8% to NIS 6.6 billion at the end of 1999. Public credit was NIS 4.8 billion - a 1.6% increase. Public deposits were NIS 5.8 billion - an 8.7% increase. The bank's shareholders capital grew by 8% to NIS 435 million at the end of 1999.
Published by Israel's Business Arena on 2 March, 2000