Net Profit totaled NIS 740 million
Return on Equity of 9.9%
Tier 1 Capital of 9.4%
Cash Dividend Payout of NIS 117 million to be paid from Third Quarter 2014 Net Profit
TEL AVIV, Israel, Nov. 24, 2014 (GLOBE NEWSWIRE) -- Bank Hapoalim (TASE:POLI) (ADR:BKHYY), Israel's leading financial group, today announced financial results for the third quarter ended September 30, 2014.
Third Quarter 2014 Financial Highlights:
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Net profit totaled NIS 740 million compared with a profit of NIS 653 million in the same quarter last year.
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Return on equity reached 9.9%, compared with 9.6% in the same quarter last year.
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Tier 1 Capital Ratio, in Basel 3 terms, stood at 9.39% at the end of the third quarter 2014, compared with 9.15% at January 1, 2014.
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Total Capital Ratio, in Basel 3 terms, as at September 30, 2014 totaled 14.7%, similar to that on January 1, 2014.
- Quarterly Dividend - The Bank's Board of Directors approved the quarterly cash dividend distribution, at a rate of approximately 15% of net profit, from its third quarter 2014 earnings in the amount of NIS 117 million.
Main developments in the financial statements for the third quarter of 2014:
Profit from regular financing activity totaled NIS 1,915 million in the third quarter of 2014, compared with NIS 1,922 million in the same quarter last year.
The financial margin from regular activity totaled 2.21% in the third quarter of 2014, compared to 2.20% in the same quarter last year.
Provision for credit losses in the third quarter of 2014 totaled NIS 80 million, compared to NIS 375 million in the same quarter last year.
Fees and other income totaled NIS 1,304 million in the third quarter of 2014 compared with NIS 1,278 million in the same quarter last year.
Operating and other expenses totaled NIS 2,209 million in the third quarter of 2014 compared with NIS 2,133 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 from the beginning of 2014 was expressed in a financial value of approximately NIS 38 million.
Developments in Balance Sheet Items:
The consolidated balance sheet as at September 30, 2014 totaled NIS 394.2 billion, compared with NIS 380.2 billion at the end of 2013, an increase of 3.7%.
Net Credit to the public totaled NIS 257.8 billion, compared with NIS 251.6 billion at the end of 2013. The 2.5% increase resulted mainly from an increase in retail, small business, and commercial credit partially offset by a decrease in corporate credit.
Credit to Retail customers totaled NIS 33.7 billion compared with NIS 31.4 billion at the end of 2013, an increase of 7.2%.
Mortgages totaled NIS 60.5 billion compared with NIS 57.9 billion at the end of 2013, an increase of 4.5%.
Credit to Small Businesses totaled NIS 28.3 billion in the end of the third quarter of 2014 compared with NIS 26.2 billion at the end of 2013, an increase of 7.8%.
Credit to the Commercial segment totaled NIS 33.1 billion in the end of the third quarter of 2014 compared with NIS 30.7 billion at the end of 2013, an increase of 7.8%.
Deposits from the public totaled NIS 281.8 billion compared with NIS 276.5 billion at the end of 2013, an increase of 1.9%.
Shareholders' Equity totaled NIS 31.3 billion in the end of the third quarter of 2014 compared with NIS 29.1 billion at the end of 2013, an increase of 7.8%.
Conference Call Information
Bank Hapoalim will host a conference call as well as a slide presentation webcast today to review the Third 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 Third 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 Monday, November 24th, 2014 through 1:00 p.m. Eastern Time / 6:00 p.m. UK Time / 8:00 p.m. Israel Time on Monday December 1st, 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, and private 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 | |||||
| Sept. 30, 2014 | June 30, 2014 | March 31, 2014 | Dec. 31, 2013 | Sept. 30, 2013 | |
| Profit and Profitability | |||||
| Net financing income* | 2,160 | 2,322 | 2,056 | 2,073 | 2,117 |
| Fees and other income | 1,304 | 1,297 | 1,299 | 1,394 | 1,278 |
| Total income | 3,464 | 3,619 | 3,355 | 3,467 | 3,395 |
| Provision (income) for credit losses | 80 | (3) | (15) | (59) | 375 |
| Operating and other expenses | 2,209 | 2,251 | 2,156 | 2,562 | 2,133 |
| Net profit attributed to shareholders of the Bank | 740 | 783 | 753 | 651 | 653 |
| For the nine months ended | For the year ended | ||||
| Sept. 30, 2014 | Sept. 30, 2013 | Dec. 31, 2013 | |||
| Net financing income* | 6,538 | 6,350 | 8,423 | ||
| Fees and other income | 3,900 | 3,847 | 5,241 | ||
| Total income | 10,438 | 10,197 | 13,664 | ||
| Provision (income) for credit losses | 62 | 933 | 874 | ||
| Operating and other expenses | 6,616 | 6,403 | 8,965 | ||
| Net profit attributed to shareholders of the Bank | 2,276 | 1,929 | 2,580 | ||
| Sept. 30, 2014 | June 30, 2014 | March 31, 2014 | Dec. 31, 2013 | Sept. 30, 2013 | |
| Main Financial Ratios | |||||
| Total balance sheet | 394,229 | 370,390 | 376,867 | 380,246 | 374,216 |
| Net credit to the public | 257,826 | 252,066 | 250,232 | 251,600 | 249,341 |
| Securities | 57,190 | 63,800 | 65,333 | 60,912 | 60,998 |
| Deposits from the public | 281,760 | 268,935 | 276,014 | 276,525 | 269,632 |
| Bonds and subordinated notes | 34,073 | 30,533 | 31,314 | 33,980 | 34,819 |
| Shareholders' equity | 31,340 | 30,542 | 29,855 | 29,060 | 28,391 |
| Net total problematic credit risk** | 13,361 | 13,483 | 14,205 | 16,279 | 13,870 |
| Of which: net impaired balance sheet debts** | 5,719 | 6,038 | 6,305 | 6,817 | 6,624 |
| (NIS millions) | |||||
| For the three months ended | |||||
| Sept. 30, 2014 | June 30, 2014 | March 31, 2014 | Dec. 31, 2013 | Sept. 30, 2013 | |
| Main Financial Ratios | |||||
| Net loan to deposit ratio | 91.5% | 93.7% | 90.7% | 91.0% | 92.5% |
| Net loan to deposit ratio including bonds and subordinated notes | 81.6% | 84.2% | 81.4% | 81.0% | 81.9% |
| Shareholders' equity to total assets | 7.9% | 8.2% | 7.9% | 7.6% | 7.6% |
| Common equity Tier 1 capital according to Basel 3 | 9.4% | 9.5% | 9.4% | ||
| Total capital according to Basel 3 | 14.7% | 15.0% | 15.0% | ||
| Ratio of core capital to risk-adjusted assets according to Basel 2 | 9.4% | 9.3% | |||
| Ratio of total capital to risk-adjusted assets according to Basel 2 | 15.6% | 15.7% | |||
| Financing margin from regular activity(1)(2) | 2.21% | 2.31% | 2.09% | 2.13% | 2.20% |
| Cost-income ratio(5) | 63.8% | 62.2% | 64.3% | 61.2% | 62.8% |
| Total income to assets(3) | 3.7% | 3.9% | 3.6% | 3.8% | 3.6% |
| Total expenses to assets(4) | 2.4% | 2.4% | 2.3% | 2.8% | 2.3% |
| Provision for credit losses as a percentage of the average recorded balance of credit to the public(1) | 0.12% | (0.00%) | (0.02%) | (0.09%) | 0.59% |
| Net return of profit attributed to shareholders of the Bank on equity(1) | 9.9% | 10.8% | 10.7% | 9.4% | 9.6% |
| Basic net earnings per share in NIS attributed to shareholders of the Bank | 0.56 | 0.59 | 0.57 | 0.49 | 0.50 |
| For the nine months ended | For the year ended | ||||
| Sept. 30, 2014 | Sept. 30, 2013 | Dec. 31, 2013 | |||
| Financing margin from regular activity(1)(2) | 2.19% | 2.13% | 2.12% | ||
| Cost-income ratio(5) | 63.4% | 62.8% | 62.4% | ||
| Total income to assets(3) | 3.7% | 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) | 0.03% | 0.49% | 0.34% | ||
| Net return of profit attributed to shareholders of the Bank on equity(1) | 10.2% | 9.5% | 9.3% | ||
| Basic net earnings per share in NIS attributed to shareholders of the Bank | 1.72 | 1.46 | 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. | |||||