US probe provision depresses Hapoalim profit

Arik Pinto  photo: Tamar Matsafi
Arik Pinto photo: Tamar Matsafi

Bank Hapoalim posted a third quarter net profit of NIS 699 million, down 13% on the corresponding quarter.

Bank Hapoalim (TASE: POLI), headed by Arik Pinto, posted a 13% drop in net profit for the third quarter in comparison with the third quarter of 2015. Profit for the third quarter this year totaled NIS 699 million, down from NIS 802 million in the corresponding quarter. Bank Hapoalim explains that a NIS 255 million provision against an investigation into aiding money laundering in the US was the main reason for the decline.

The bank's return on equity in the third quarter of this year was 8.3%, which compares with 10.4% in the corresponding quarter. It decided to raise its dividend distribution to 30% of profit, and declared a dividend of NIS 210 million.

Net financing income was unchanged at NIS 2.2 billion, and total revenue rose to 3.582 billion from NIS 3.533 in the corresponding quarter.

At the end of the third quarter, Bank Hapoalim's balance sheet footing was NIS 440.2 billion, 2% higher than the NIS 431.6 billion at the end of 2015. Shareholders' equity totaled NIS 34.1 billion, which compares with NIS 33 million at the end of 2015, representing growth of 3.3%.

Net credit to the public totaled NIS 277.5 billion at the end of the quarter, 0.3% less than the NIS 278.5 billion total at the end of 2015.

Home lending totaled NIS 68.2 billion, which compares with NIS 66.8 billion at the end of 2015. Deposits from the public totaled NIS 326.2 billion at the end of the third quarter, which compares with NIS 321.7 billion at the end of 2015.

Published by Globes [online], Israel business news - www.globes-online.com - on November 17, 2016

© Copyright of Globes Publisher Itonut (1983) Ltd. 2016

Arik Pinto  photo: Tamar Matsafi
Arik Pinto photo: Tamar Matsafi
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