Net Profit totaled NIS 783 million
Return on Equity of 10.8%
Basel 3 Tier 1 Capital rose to 9.5%
Cash Dividend Payout of NIS 119 million to be paid from Second Quarter 2014 Net Profit
TEL AVIV, Israel, Aug. 14, 2014 (GLOBE NEWSWIRE) -- Bank Hapoalim (TASE:POLI) (ADR:BKHYY), Israel's leading financial group, today announced financial results for the second quarter ended June 30, 2014.
Second Quarter 2014 Financial Highlights:
- Net profit totaled NIS 783 million compared with a profit of NIS 655 million in the same quarter last year.
- Return on equity reached 10.8%, compared with 9.9% in the same quarter last year.
- Tier 1 Capital Ratio, in Basel 3 terms, stood at 9.53% at the end of the second quarter 2014, compared with 9.15% at January 1, 2014.
- Total Capital Ratio, in Basel 3 terms, as at June 30, 2014 was 15.0% compared with 14.7% on January 1, 2014.
- Quarterly Dividend - The Bank's Board of Directors approved the continuation of the quarterly cash dividend distribution, at a rate of approximately 15% of net profit, from its second quarter 2014 earnings in the amount of NIS 119 million.
Main developments in the financial statements for the first quarter of 2014:
Profit from regular financing activity totaled NIS 1,997 million in the second quarter of 2014, compared with NIS 1,864 million in the same quarter last year.
The financial margin from regular activity totaled 2.31% in the second quarter of 2014, compared to 2.16% in the same quarter last year.
Provision for credit losses in the second quarter of 2014 recorded income of NIS 3 million, compared with an expense of NIS 301 million in the same quarter last year.
Fees and other income totaled NIS 1,297 million in the second quarter of 2014 compared with NIS 1,282 million in the same quarter last year, an increase of 1.2%.
Operating and other expenses totaled NIS 2,251 million in the second quarter of 2014 compared with NIS 2,135 in the same quarter last year.
Contribution to the community - The Bank's employees are involved in a varied and extensive range of community-oriented activities that take the form of social involvement, monetary donations, and large-scale volunteer activities. Bank Hapoalim's community-oriented activity during the first half of 2014 was expressed in a financial value of approximately NIS 29 million.
In recent weeks, during Operation Protective Edge, Bank Hapoalim provided assistance to residents of the south, especially to small and medium-size businesses. The Bank took a number of initiatives, including providing benefits to local customers, and special activities such as hosting a shopping fair to support businesses from the South in which thousands of Israelis participated and bought products.
Developments in Balance Sheet Items:
The consolidated balance sheet as at June 30, 2014 totaled NIS 370.4 billion, compared with NIS 380.2 billion at the end of 2013, a decrease of 2.6%.
Net Credit to the public totaled NIS 252.1 billion, compared with NIS 251.6 billion at the end of 2013, an increase of 0.2% mainly as a result of an increase in retail, small business, and commercial credit offset by a decrease in corporate credit.
Credit to Retail customers totaled NIS 103.5 billion compared with NIS 100.4 billion at the end of 2013, an increase of 3.0%. This includes consumer credit which totaled NIS 33.0 billion compared with NIS 31.4 billion at the end of 2013, an increase of 5.1%. Mortgages totaled NIS 59.2 billion compared with NIS 57.9 billion at the end of 2013, an increase of 2.3%.
Credit to Small Businesses totaled NIS 27.4 billion in the second quarter of 2014 compared with NIS 26.2 billion at the end of 2013, an increase of 4.4%.
Credit to the Commercial segment totaled NIS 31.9 billion in the second quarter of 2014 compared with NIS 30.6 billion at the end of 2013, an increase of 4.1%.
Deposits from the public totaled NIS 268.9 billion compared with NIS 276.5 billion at the end of 2013, a decrease of 2.7%.
Shareholders' Equity totaled NIS 30.5 billion in the second quarter of 2014 compared with NIS 29.1 billion at the end of 2013, an increase of 5.1%.
Conference Call Information
Bank Hapoalim will host a conference call as well as a slide presentation webcast today to review the Second Quarter 2014 financial results at 9:00 a.m. U.S. Eastern Time / 2:00 p.m. UK Time / 4:00 p.m. Israel Time.
To access the call, please dial: 1-888-281-1167 in the U.S. and 1-866-485-2399 in Canada or (972) 3-9180685 for international participants. No password is required. The presentation slides, earnings release and the Second Quarter 2014 financial statements are available at the Bank's website, www.bankhapoalim.com, under Investor Relations, Financial Information.
A replay of the conference call will be available beginning at approximately 1:00 p.m. U.S. Eastern Time / 6:00 p.m. UK Time / 8:00 p.m. Israel Time on Thursday, August 14th, 2014 through 1:00 p.m. Eastern Time / 6:00 p.m. UK Time / 8:00 p.m. Israel Time on Thursday August 21st, 2014 by telephone at (972) 3-9255918 (international).
The webcast replay will also be available by audio playback on the Bank Hapoalim website at www.bankhapoalim.com, under Investor Relations, Financial Information.
About Bank Hapoalim
Bank Hapoalim is Israel's leading financial group. In Israel, the Bank Hapoalim Group has about 260 branches, seven regional business centers, a network of 22 business branches and specialized industry relationship managers for major corporate customers.
The Bank Hapoalim Group includes Isracard Ltd, Israel's leading credit card company as well as financial companies involved in investment banking, trust services and portfolio management.
Internationally, Bank Hapoalim operates through branches, subsidiaries and representative offices, in North America, Latin America, Europe, the Far East, and Turkey. In these markets, the Bank is engaged in trade, corporate finance, private banking and retail banking.
Bank Hapoalim is listed on the Tel Aviv Stock Exchange. In addition, a Level-1 ADR is traded "over-the-counter" in New York.
For more information about Bank Hapoalim, please visit us online at www.bankhapoalim.com.
| Principal Data of the Bank Hapoalim Group | (NIS millions) | |||||||||
| For the three months ended | ||||||||||
|
June 30, 2014 |
March 31 2014 |
March 31, 2013 |
Sept. 30, 2013 |
June 30, 2013 |
||||||
| Profit and Profitability | ||||||||||
| Net financing income* | 2,322 | 2,056 | 2,073 | 2,117 | 2,176 | |||||
| Fees and other income | 1,297 | 1,299 | 1,394 | 1,278 | 1,282 | |||||
| Total income | 3,619 | 3,355 | 3,467 | 3,395 | 3,458 | |||||
| Provision (income) for credit losses | (3) | (15) | (59) | 375 | 301 | |||||
| Operating and other expenses | 2,251 | 2,156 | 2,562 | 2,133 | 2,135 | |||||
| Net profit attributed to shareholders of the Bank | 783 | 753 | 651 | 653 | 655 | |||||
|
For the six months ended |
For the year ended |
|||||||||
|
June 30, 2014 |
March 31, 2013 |
March 31, 2013 |
||||||||
| Net financing income* | 4,378 | 4,233 | 8,423 | |||||||
| Fees and other income | 2,596 | 2,569 | 5,241 | |||||||
| Total income | 6,974 | 6,802 | 13,664 | |||||||
| Provision (income) for credit losses | (18) | 558 | 874 | |||||||
| Operating and other expenses | 4,407 | 4,270 | 8,965 | |||||||
| Net profit attributed to shareholders of the Bank | 1,536 | 1,276 | 2,580 | |||||||
|
June 30, 2014 |
March 31, 2014 |
March 31, 2013 |
Sept. 30, 2013 |
June 30, 2013 |
||||||
| Main Financial Ratios | ||||||||||
| Total balance sheet | 370,390 | 376,867 | 380,246 | 374,216 | 378,483 | |||||
| Net credit to the public | 252,066 | 250,232 | 251,600 | 249,341 | 247,120 | |||||
| Securities | 63,800 | 65,333 | 60,912 | 60,998 | 61,137 | |||||
| Deposits from the public | 268,935 | 276,014 | 276,525 | 269,632 | 274,601 | |||||
| Bonds and subordinated notes | 30,533 | 31,314 | 33,980 | 34,819 | 35,874 | |||||
| Shareholders' equity | 30,542 | 29,855 | 29,060 | 28,391 | 27,808 | |||||
| Net total problematic credit risk** | 13,483 | 14,205 | 16,279 | 13,870 | 13,264 | |||||
| Of which: net impaired balance sheet debts** | 6,038 | 6,305 | 6,817 | 6,624 | 7,030 | |||||
| For the three months ended | ||||||||||
|
June 30, 2014 |
March 31, 2014 |
Dec. 31, 2013 |
Sept. 30, 2013 |
June 30, 2013 |
||||||
| Main Financial Ratios | ||||||||||
| Net loan to deposit ratio | 93.7% | 90.7% | 91.0% | 92.5% | 90.0% | |||||
| Net loan to deposit ratio including bonds and subordinated notes | 84.2% | 81.4% | 81.0% | 81.9% | 79.6% | |||||
| Shareholders' equity to total assets | 8.2% | 7.9% | 7.6% | 7.6% | 7.3% | |||||
| Common equity Tier 1 capital according to Basel 3 | 9.5% | 9.4% | ||||||||
| Total capital according to Basel 3 | 15.0% | 15.0% | ||||||||
| Ratio of core capital to risk-adjusted assets according to Basel 2 | 9.4% | 9.3% | 9.2% | |||||||
| Ratio of total capital to risk-adjusted assets according to Basel 2 | 15.6% | 15.7% | 15.7% | |||||||
| Financing margin from regular activity(1)(2) | 2.31% | 2.09% | 2.13% | 2.20% | 2.16% | |||||
| Cost-income ratio(5) | 62.2% | 64.3% | 61.2% | 62.8% | 61.7% | |||||
| Total income to assets(3) | 3.9% | 3.6% | 3.8% | 3.6% | 3.7% | |||||
| Total expenses to assets(4) | 2.4% | 2.3% | 2.8% | 2.3% | 2.3% | |||||
| Provision for credit losses as a percentage of the average recorded balance of credit to the public(1) | (0.00%) | (0.02%) | (0.09%) | 0.59% | 0.48% | |||||
| Net return of profit attributed to shareholders of the Bank on equity(1) | 10.8% | 10.7% | 9.4% | 9.6% | 9.9% | |||||
| Basic net earnings per share in NIS attributed to shareholders of the Bank | 0.59 | 0.57 | 0.49 | 0.50 | 0.50 | |||||
|
For the six months ended |
For the year ended |
|||||||||
|
June 30, 2014 |
June 30, 2013 |
Dec. 31, 2013 |
||||||||
| Financing margin from regular activity(1)(2) | 2.19% | 2.11% | 2.12% | |||||||
| Cost-income ratio(5) | 63.2% | 62.8% | 62.4% | |||||||
| Total income to assets(3) | 3.8% | 3.7% | 3.7% | |||||||
| Total expenses to assets(4) | 2.4% | 2.3% | 2.4% | |||||||
| Provision for credit losses as a percentage of the average recorded balance of credit to the public(1) | (0.01%) | 0.44% | 0.34% | |||||||
| Net return of profit attributed to shareholders of the Bank on equity(1) | 10.6% | 9.6% | 9.3% | |||||||
| Basic net earnings per share in NIS attributed to shareholders of the Bank | 1.16 | 0.97 | 1.96 | |||||||
| * Net financing income includes net interest income and non-interest income (expenses). | ||||||||||
| ** Net of the individual allowance, the allowance according to the extent of arrears, and the collective allowance in respect of problematic credit risk. | ||||||||||
| (1) Calculated on an annualized basis. | ||||||||||
| (2) Financing profit from regular activity (see the Board of Directors' report, in the section Profit and Profitability – Development of Financing Profit) is divided by total financial assets after allowance for credit losses, net of non-interest bearing balances in respect of credit cards. | ||||||||||
| (3) Total income divided by the average balance of total assets. | ||||||||||
| (4) Total operating and other expenses, divided by the balance of total average assets. | ||||||||||
| (5) Does not include expenses for efficiency plans. | ||||||||||