Hapoalim posts NIS 7.4b 2023 profit, cuts dividend to 20%

• Published date: 07 March 2024
• Author: Roi Weinberger
• Publication title: Globes (Rishon LeZion, Israel)

The bank's fourth quarter and full year 2023 financials published this morning show a profit of NIS 1.6 billion in the fourth quarter, similar to the profit for the fourth quarter of 2022, and slightly higher than the third quarter 2023 profit of NIS 1.67 billion. The annualized return on equity for the fourth quarter of 2023 was 14%, which compares with 15.3 % in the fourth quarter of 2022

Bank Hapoalim provided NIS 453 million for credit losses in the fourth quarter of 2023. "In the light of the rise in uncertainty and the dangers to the economy because of possible consequences of the war (a estimated at the time of publication) the bank continued to increase its general provision for credit loses in the fourth quarter. The amount provided consists mainly of a general provision and automatic write-offs. In total, the bank provided NIS 1.88 billion for credit losses in 2023, which was mainly a general provision, together with a rise in automatic write-offs," the bank explains. In other words, Bank Hapoalim has still not identified significant credit failures on the part of specific borrowers.

Bank Hapoalim's credit portfolio grew by 4.8% in 2023 to NIS 407.4 billion.

The high...