Bank Hapoalim reported a third-quarter profit of NIS 1.6 billion

Bank Hapoalim, one of Israel's leading financial institutions, reported a third-quarter profit of NIS 1.6 billion, according to the bank's financial statements released this Thursday. While the bank acknowledged the economic uncertainties prevailing in the market, it took precautionary measures by reducing the dividend to shareholders by 20% of the net profit, resulting in an approximate payout of NIS 334 million.

In comparison to the corresponding quarter of the previous year, where Bank Hapoalim earned NIS 1.78 billion, the current figures represent a 6.5% decrease. The dividend distribution was also halved from 40% to 20%.

Bank Hapoalim's credit portfolio exhibited a 4.0% growth since the beginning of the year. The bank emphasized its commitment to balancing risk, profitability, and growth while maintaining high credit quality indicators aligned with its risk appetite.

Responding to the heightened uncertainty, particularly in the aftermath of the war, the bank increased its expense for credit losses to NIS 662 million for the third quarter. This significant uptick from the NIS 45 million reported in the corresponding quarter of 2022 was primarily attributed to the expansion of the group provision.

In the wake of the recent conflict, Bank Hapoalim announced measures to assist its customers, including the deferral of mortgage payments. The cumulative cost of these customer-centric initiatives is estimated to reach NIS 420 million.

Bank Hapoalim's financial performance reflects a strategic response to the challenges posed by economic uncertainties and geopolitical events, demonstrating a proactive approach to risk management while continuing to support its customer base in challenging times.