TEL AVIV, Israel, Nov. 25, 2009 (GLOBE NEWSWIRE) -- Bank Hapoalim (TASE:POLI) (LSE:BKHD) today announced their earnings for the third quarter of 2009.
Highlights of the financial statements:
* Net Profit for the third quarter of 2009 totaled NIS 425 million compared with a profit of NIS 382 million in the previous quarter, an increase of 11.3%. * Return on equity for the third quarter of 2009 was 8.8%, on an annualized basis compared with 8.3% in the previous quarter. * Operating income for the third quarter of 2009 totaled NIS 1,359 million compared with NIS 1,231 million in the previous quarter, an increase of 10.4%. * Operating and other expenses decreased by 11.0% compared with the previous quarter and totaled NIS 1,683 million in the third quarter compared with NIS 1,890 million in the previous quarter. * The Bank's capital adequacy rose to 13.33% at the end of the third quarter of 2009 compared with 12.83% at June 30, 2009. This rate exceeds the Board of Director's year-end 2009 objective of 12%. Tier 1 Capital rose to 8.21% at the end of the third quarter of 2009 compared with 7.84% at June 30, 2009.
Main developments in the financial statements for the third quarter of 2009:
Net operating profit for the third quarter of 2009 totaled NIS 422 million compared with a profit of NIS 380 million in the previous quarter.
Net return of operating profit on equity for the third quarter of 2009 was 8.8%, on an annualized basis, compared with 8.2% in the previous quarter. In the first nine months of the year, net return of operating profit on equity totaled 5.7%, on an annualized basis.
Profit from regular financing activity (profit from financing activity excluding one-off and other irregular items) totaled NIS 1,707 million in the third quarter of 2009, compared with a profit of NIS 1,686 million in the previous quarter
Financial margin from regular activity stood at 2.35% in the third quarter of 2009, compared with 2.34% in the previous quarter. This data clearly indicates the continuous stability of the financing margins in the present (low) interest rate environment.
The provision for doubtful debts was made on a conservative basis, with due regard for assessments of the risks in the credit portfolio. In the third quarter of 2009 the Bank recorded provisions totaling NIS 629 million, compared with NIS 538 million in the previous quarter.
The rate of the specific provision to total credit to the public, net of the reduction in provisions and the collection of debts written off in the past, reached 1.21%, in the third quarter of 2009, compared with 0.80% in the previous quarter.
The specific provision for doubtful debts totaled NIS 1,481 million in the first nine months of 2009, and the rate of the specific provision for this period is 0.83%, a rate within the range of the Bank's business plans.
Operating and other income -- totaled NIS 1,359 million in the third quarter of 2009 compared with NIS 1,231 million in the previous quarter, an increase of 10.4%. The increase was mainly due to an increase in income from investments in shares and credit card fees.
Operating and other expenses totaled NIS 1,683 million in the third quarter of 2009 compared with NIS 1,890 million in the previous quarter, a decrease of 11.0%. The decrease was mainly due to the decrease in salary expenses as a result of effects of the wage agreement with the Employees' Union.
Cost-Income Ratio decreased in the third quarter of 2009 to 53.6%, compared with 59.3% in the previous quarter.
Developments in Balance-Sheet Items
The consolidated balance sheet as at September 30, 2009 totaled NIS 301.9 billion, compared with NIS 302.8 billion at June 30, 2009.
Credit to the public totaled NIS 215.6 billion, compared with NIS 216.0 billion at June 30, 2009. Consumer credit and mortgages increased, but were offset by the influence of changes in foreign currency exchange rates.
Deposits from the public totaled NIS 225.2 billion compared with NIS 228.1 billion at June 30, 2009, a decrease of 1.3%. The decrease is mainly a result of the devaluation of the U.S. dollar.
Shareholder's equity totaled NIS 20,316 million as at September 30, 2009, compared with NIS 19,733 million at June 30, 2009, an increase of 3.0%.
Capital adequacy ratio rose to 13.33% at the end of the third quarter of 2009 compared with 12.83% at June 30, 2009.
Tier 1 Capital rose to 8.21% at the end of the third quarter of 2009 compared with 7.84% at June 30, 2009.
About Bank Hapoalim
Bank Hapoalim is Israel's leading financial group. In Israel, the Bank Hapoalim Group includes financial companies involved in investment banking, credit cards, trust services and portfolio management. The Group also has holdings in non-banking sectors.
Internationally, Bank Hapoalim operates through 40 branches, subsidiaries and representative offices, in North and Latin America, Europe, the Far East, Turkey and Australia. In these markets, the Bank is engaged in trade, corporate finance, private banking and retail banking.
Bank Hapoalim is the only Israeli Bank listed on both the Tel Aviv and London Stock Exchange. In addition, a Level-1 ADR is traded "over-the-counter" in New York, under ticker BKHYY.
Principal Data of the Bank Hapoalim Group
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Profit and For the three months ended on
profitability
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9/30/2009 6/30/2009 3/31/2009 12/31/2008 9/30/2008
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Profit (loss)
from financing
activities
before pro-
vision for
doubtful debts 1,779 1,955 972 1,242 2,083
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Operating and
other income 1,359 1,231 1,162 1,013 1,153
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Total income 3,138 3,186 2,134 2,255 3,236
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Provision for
doubtful debts 629 538 314 765 471
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Operating and
other expenses 1,683 1,890 1,940 2,008 1,960
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Operating
profit (loss) 422 380 21 (393) 384
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Net profit from
extraordinary
transactions,
after taxes 3 2 21 30 57
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Net profit
(loss) 425 382 42 (363) 441
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Balance Sheet -
Principal
Items
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9/30/2009 6/30/2009 3/31/2009 12/31/2008 9/30/2008
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Total balance
sheet 301,894 302,844 305,156 306,847 297,854
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Credit to the
public 215,638 215,973 220,859 222,100 214,296
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Deposits from
the public 225,196 228,136 232,442 226,953 214,802
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Debentures and
subordinated
notes 23,307 22,162 18,967 20,818 20,676
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Shareholders'
equity 20,316 19,733 18,986 18,795 19,030
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Overall Credit
risk
- Problematic
Debts 18,687 17,693 17,558 16,142 15,208
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Of which:
Non-income
bearing debt 4,152 4,369 4,187 4,168 4,011
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Principal
financial
ratios
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9/30/2009 6/30/2009 3/31/2009 12/31/2008 9/30/2008
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Loan to Deposit
Ratio 95.76% 94.67% 95.00% 97.86% 99.76%
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Shareholders'
equity to
total assets 6.73% 6.52% 6.20% 6.13% 6.39%
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Tier I capital
to risk assets 8.21% 7.84% 7.55% 7.44% 7.74%
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Total capital
to risk assets 13.33% 12.83% 11.27% 10.92% 11.29%
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Cost-Income
Ratio 53.63% 59.32% 90.91% 89.05% 60.57%
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Financing
margin on
regular
activity (a)(b) 2.35% 2.34% 2.36% 2.28% 2.89%
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Ratio of
specific pro-
vision to
total credit
to the public
attributed to
the statement
of profit and
loss(a) 1.21% 0.80% 0.49% 1.49% 0.76%
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Return of
operating
profit (loss)
on equity,
net(a) 8.75% 8.22% 0.44% (7.90%) 8.34%
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Return of net
profit (loss)
on equity(a) 8.82% 8.26% 0.89% (7.32%) 9.62%
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Net earnings
(loss) per
share 0.32 0.29 0.03 (0.29) 0.33
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(a) Quarterly figures on an annualized basis
(b) Calculated -Financing income to income-yielding assets