Bank Hapoalim profit slumps as Covid-19 crisis bites

Bank Hapoalim

The 85% fall stemmed mainly from the NIS 1.13 billion set aside for credit losses, up 250% from the corresponding quarter of 2019.

The economic crisis brought about by the Covid-19 pandemic is clearly reflect in the second quarter financial results of Bank Hapoalim (TASE: POLI), which were published this morning. The bank reported net profit of NIS 133 million in the second quarter, down 85% from the corresponding quarter of 2019. This fall stemmed mainly from the NIS 1.13 billion set aside for credit losses, up 250% from the corresponding quarter of 2019.

Income from regular financing activity totaled NIS 2.321 billion in the second quarter of 2020, compared with NIS 2.572 billion in the same quarter last year, mainly as a result of the lower interest rate environment and negative CPI in the quarter.

But common Equity Tier 1 capital ratio stood at 11.23% as at June 30, 2020 , well above both regulatory and internal targets.

The bank says that it continues to expand measures for its customers who are suffering the effects of Covid-19. Among other efforts, the bank is allowing customers to defer loan and mortgage payments, in order to provide cash-flow relief.

Published by Globes, Israel business news - en.globes.co.il - on August 13, 2020 © Copyright of Globes Publisher Itonut (1983) Ltd. 2020

Bank Hapoalim
Bank Hapoalim
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