Bank Hapoalim (TASE: POLI) reported net profit of NIS 2.1 billion in the first quarter of 2026, 13% down from NIS 2.4 billion in the corresponding quarter of 2025.
The bank attributes the lower profits to the lower interest rate and inflation environment and the new surtax on profits introduced by the Ministry of Finance. In the corresponding quarter of 2025, Hapoalim’s net profit was also boosted by tax revenues of NIS 300 million, due to liquidation of the bank's subsidiary in Switzerland. The financial results were issued as the bank’s workers committee called an unexpected strike to oppose the bank’s proposed streamlining plan.
Return on equity was 13% in the first quarter, down from 16.4% in the corresponding quarter. Without the new surtax return on equity would have been 16.4%. Hapoalim, led by CEO Yadin Antebi, said that the new tax will cost it NIS 950 million this year.
Total income in the first quarter of 2026 fell 3.7% compared with the preceding quarter, despite growth in our income, i.e. income from regular financing activity and fees. The decrease resulted from a decline in income from non-regular financing activity.
Bank Hapoalim will distribute 50% of its net profit as a dividend, amounting to NIS 1.1 billion.
Published by Globes, Israel business news - en.globes.co.il - on May 14, 2026.
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