After Isracard: Hapoalim Q2 profit shrinks

Bank Hapoalim Photo: Tamar Matsafi

Bank Hapoalim saw second quarter profit fall after selling Isracard and closing international private banking operations.

Bank Hapoalim (TASE: POLI) published its second quarter financial results this morning. The bank's profit fell 5.3% in the second quarter of 2019 to NIS 871 million from NIS 920 million in the corresponding quarter of 2018.

Return on equity (ROE) - totaled 9.3%, compared with 10.5% in the corresponding quarter of 2018. Excluding net capital gains of NIS 137 million from the public offering of Isracard, and costs associated with the closure of the bank’s international private banking operations, net profit for the reported quarter totaled NIS 800 million (ROE of 8.5%).

Operational and other expenses amounted to NIS 1.992 billion in the second quarter, down 2.1% from NIS 2.034 billion in the corresponding quarter of 2018. The savings were mainly in salary expenses as a result of the bank's streamlining plan.

Net credit to the public at the end of the second quarter totaled NIS 288.6 billion, up 2.2% from NIS 282.5 billion at the end of 2018. Housing loans totaled NIS 85.8 billion up 5.3% from NIS 81.5 billion at the end of 2018, and commercial credit totaled NIS 38.7 billion, up 3.2% from NIS 37.5 billion at the end of 2018.

On April 15 Bank Hapoalim CEO Arik Pinto unexpectedly announced that he was stepping down after three years in the job. He is being replaced by Arik Kotler.

Published by Globes, Israel business news - en.globes.co.il - on August 15, 2019

© Copyright of Globes Publisher Itonut (1983) Ltd. 2019

Bank Hapoalim Photo: Tamar Matsafi
Bank Hapoalim Photo: Tamar Matsafi
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