Bank Hapoalim Posts NIS 2.4 Billion Q1 Profit, Up 25%; Discount Bank Holds Steady

Bank Hapoalim reported strong financial results for the first quarter of 2025, posting a net profit of NIS 2.4 billion, a 25% increase compared to the same period in 2024. The profit reflects a return on equity (ROE) of 16.4%, up from 14.6% a year earlier.

Under the leadership of CEO Yadin Antebi, who assumed the role in August 2024, Hapoalim announced a cash dividend of NIS 720 million and a share buyback worth NIS 250 million, totaling a NIS 970 million distribution—40% of quarterly profits.

The bank reported growth across most business lines. Its total credit portfolio rose by 2.7% to NIS 456 billion, with the strongest growth in lending to large businesses (+3.6%) and to small and medium-sized businesses (+3.4%). Housing loans grew 2%, while consumer credit rose 1%.

Net interest income climbed 10% to NIS 4.5 billion. However, provisions for credit losses rose sharply to NIS 262 million, compared to a positive income of NIS 14 million in the same quarter last year. The increase was attributed to portfolio growth and group provisions.

Discount Bank Q1 Profit Steady at NIS 1.04 Billion 

Dividend and buyback equal 40% of profits; operating costs and credit provisions climb

Discount Bank, led by CEO Avi Levy, reported a first-quarter net profit of NIS 1.04 billion, nearly identical to the NIS 1.05 billion recorded in Q1 2024. The bank’s return on equity slipped to 13%, down from 14.6% a year earlier.

The bank declared a dividend of NIS 315 million (30% of profits) and announced a share buyback program worth NIS 105 million (10% of profits), bringing its total payout to 40% of net profit. The board also updated its dividend policy, allowing for distributions of up to 50% of profits in future quarters.

Despite an expanding credit portfolio, Discount's modest profit growth was hampered by a 1.4% increase in financing income. Operating expenses surged 6.7%, and provisions for credit losses climbed 36% to NIS 114 million, up from NIS 82 million last year. Additionally, the bank faced higher tax payments due to the special bank tax imposed in 2024–2025.

The bank’s public credit portfolio grew 2.1% to NIS 292 billion, led by a 3.2% increase in loans to large businesses. Consumer credit rose 1.5%, housing loans 1.4%, while lending to mid-sized businesses declined 1.3%.

Despite relatively high credit risk indicators, Discount showed improvement. The non-performing loan (NPL) ratio fell to 0.69%, compared to 0.86% in Q1 2024.

Commission income grew by 15.5% to NIS 993 million, with credit card fees rising 18.1% to NIS 535 million. Meanwhile, public deposits declined by 1.6%, totaling NIS 327 billion.