Hapoalim posts NIS 7.4b 2023 profit, cuts dividend to 20%

Bank Hapoalim (TASE: POLI) reported a net profit of NIS 7.4 billion in 2023, with a return on equity of 15%. This represents a 12.7% increase from the NIS 6.5 billion profit in 2022, driven by revenue growth offset by higher credit loss provisions.

The financial results for the fourth quarter and full year of 2023, released today, show a profit of NIS 1.6 billion in the fourth quarter, similar to the fourth quarter of 2022 and slightly higher than the NIS 1.67 billion profit in the third quarter of 2023. The annualized return on equity for the fourth quarter of 2023 was 14%, compared to 15.3% in the fourth quarter of 2022.

In the fourth quarter of 2023, Bank Hapoalim set aside NIS 453 million for credit losses due to increased economic uncertainty related to potential consequences of the war. The bank’s total credit loss provisions for 2023 amounted to NIS 1.88 billion, primarily from general provisions and automatic write-offs.

Bank Hapoalim’s credit portfolio grew by 4.8% in 2023 to NIS 407.4 billion. However, the high interest rate environment led to a decrease in credit to private customers and small businesses.

While credit to private individuals and small businesses decreased, the bank’s mortgage portfolio grew by 2.6% in 2023 to NIS 131.1 billion.

Following new guidelines from the Bank of Israel, Bank Hapoalim will distribute a dividend of 20% of its fourth quarter profit, totaling NIS 352 billion (NIS 0.263 per share) on April 8, 2024. The total dividend for 2023 will be NIS 2.26 billion.

Source: Globes – Israel business news – March 7, 2024.

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