Bank Hapoalim approved the distribution of a dividend of NIS 617 million,

Tonight (Sunday), Bank Hapoalim approved the distribution of a dividend of NIS 617 million, making it the first bank to do so since the Supervisor of Banks approved two weeks ago that banks return to distribute dividends. The dividend to be distributed is 30% of the Bank's net profit for 2020 - the ceiling approved by the Supervisor. Apparently, more banks will start distributing dividends soon.
At the outset of the Corona crisis in March 2020, the Supervisor of Banks instructed banks to re-examine their dividend policies, and to divert their resources for the purpose of providing credit and absorbing losses. He recently eased some of the restrictions on its distribution: "Given the growing trend of emerging from the corona crisis and the strength of the banks in Israel, which allows them to support the economic activity of the economy, there is no denying that banks will consider dividend distribution %. "The position of the Supervisor of Banks is that a distribution in an amount higher than 30% of the 2020 profits is not considered careful and conservative capital planning."
The Board of Directors of Bank Hapoalim has decided on the distribution of the maximum dividend, despite the uncertainty against the background of the spread of the Delta variant, among other things due to the fact that in the Bank's balance sheets provisions were made for the corona in 2020.
62% of Bank Hapoalim's shares are held by the public, 27% by institutional entities and 11% by Arison Holdings. The bank earned NIS 1.354 billion in the first quarter of 2020. The decisive date for the distribution of the dividend is August 9, and the dividend will be distributed on August 18.
The recent return to dividend distribution by banks in Israel, like banks in the US and Europe, is a positive sign for the economy and indicates a return to routine after the crisis.