Hapoalim closes a quarter with a 48% increase in profit and distributes a huge dividend

by time news

Bank Hapoalim Recorded a net profit of NIS 1.2 billion in the third quarter of the year, an increase of 48% compared to a profit of NIS 816 million in the corresponding quarter last year. The increase in profit was due to the continued accelerated growth and the increase in the volume of activity that led to an increase in total income, from the recording of income from credit losses and from the investment activity of Poalim Equity.

The rate of return on capital in the quarter was 11.8%, compared with 8.8% in the corresponding quarter last year.

Total revenues amounted to NIS 3.64 billion in the quarter, an increase of 10.4% compared with the corresponding quarter, against the background of growth in the Bank’s core activity. Financing income from operating activities amounted to NIS 2.6 billion in the quarter, an increase of 11.2%, against the background of growth in the volume of credit and the increase in the rate of inflation.

A significant contribution to profit came from recording income in the item of credit losses in the amount of NIS 252 million, compared with expenses for credit losses in the amount of NIS 193 million in the third quarter of 2020.

Simultaneously with the publication of the reports, the Bank’s Board of Directors announced the distribution of a dividend of NIS 862 million – of which NIS 362 million constitutes 30% of the profits for the third quarter of 2021 and NIS 500 million for the first half of the year. The dividend will be paid on December 8th.

The reports also show that the volume of mortgages granted by the bank amounted to NIS 109.5 billion at the end of September, compared with NIS 98.7 billion at the end of 2020, an increase of 10.9%. Credit to private customers in Israel amounted to NIS 37.9 billion, compared with NIS 37.2 billion at the end of 2020, an increase of 1.8%.

Credit to small businesses in Israel increased by 2% to a level of about NIS 32 billion and credit in the commercial sector in Israel grew by 17% and amounted to NIS 49.6 billion. Credit to the business sector in Israel increased by 15% to NIS 90 billion.

Deposits from the public amounted to NIS 505.5 billion at the end of September, compared with NIS 435.2 billion at the end of 2020, an increase of 16.1%.

In the sum of the first nine months of the year, the bank’s net profit amounted to NIS 4 billion, compared with NIS 1.14 billion in the corresponding period in 2020, and the return on capital of the workers was 13.1%.

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