Bank Hapoalim (TASE: POLI) reported this morning that net profit fell 16.5% in the first quarter of 2016 to NIS 674 million from NIS 808 million in the corresponding quarter of 2015. The bank said that the fall in profit was due to the lowering of company tax, which caused a one-time tax expenditure of NIS 114 million during the quarter as well as a fall in profit from realizing bonds and shares and operating revenue in the capital market.
Bank Hapoalim's revenue in the first quarter fell slightly to NIS 3.545 billion from NIS 3.555 billion in the corresponding quarter of 2015.
Return on equity fell to 8.4% from 10.7% in the first quarter of 2016 while capital adequacy was 13.94%, down from 14.36%. Core capital adequacy actually rose slightly to 9.74% from 9.63%.
Other figures: Credit to the public was NIS 279.9 billion up from NIS 278.5 billion at the end of 2015. The 0.5% rise stemmed mainly from a rise in retail credit and credit to small business and the commercial sector. Credit to private customers was NIS 39.6 billion up 1.6% from NIS 39 billion at the end of 2015.
Bank Hapoalim will distribute dividends totaling NIS 135 million, 20% of first quarter profits.
Published by Globes [online], Israel business news - www.globes-online.com - on May 19, 2016
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