Bank Hapoalim (TASE: POLI) has reported a sharp increase in profit for the first quarter of 2014.
Net profit rose 21.2% to NIS 753 million from NIS 621 million in the corresponding quarter of 2013.
Profit from regular financing activity totaled NIS 1.795 billion in the first quarter of 2014, up from a profit of NIS 1.773 billion in the corresponding quarter. The financial margin from regular activity was 2.1% in the first quarter of 2014, similar to the corresponding quarter last year.
Provision for credit losses in the first quarter of 2014 recorded income of NIS 15 million, compared with an expense of NIS 257 million in the corresponding quarter last year. Fees and other income totaled NIS 1.299 billion in the first quarter of 2014 up 0.9% from NIS 1.287 billion in the corresponding quarter. Operating and other expenses totaled NIS 2.156 billion in the first quarter of 2014 compared with NIS 2.135 billion in the corresponding quarter.
Return on equity was 10.7%, up from 9.5% in the corresponding quarter. Tier 1 Capital Ratio, in Basel 3 terms, was 9.44% at the end of the first quarter 2014 compared with 9.15% on January 1 2014. Total Capital Ratio, in Basel 3 terms, as at March 31 2014 was 14.96% compared with 14.68% on January 1 2014.
The Bank's board of directors approved the continuation of the quarterly cash dividend distribution at a rate of about 15% of net profit, from its first quarter 2014 earnings worth NIS 106 million.
Net Credit to the public totaled NIS 250.2 billion, down 0.5% from NIS 251.6 billion at the end of 2013. This was a result of a decrease in corporate credit offset by an increase in retail, small business, and commercial credit.
Published by Globes [online], Israel business news - www.globes-online.com - on May 22, 2014
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