Kobi Yeshayahou and Yossi Nissan Bank Hapoalim (TASE: POLI) has reported flat financial results for the fourth quarter of 2013 and full-year 2013. Net profit was NIS 2.580 billion in 2013, up slightly from NIS 2.543 billion in 2012. Return on equity was 9.3% in 2013 compared with 10.1% in 2012.
Profit from financing activity in 2013 was NIS 8.423 billion up 0.1% from NIS 8.415 billion in 2012. The provision for credit losses totaled NIS 874 million in 2013 compared with NIS 987 million in 2012. The rate of provision as a percentage of credit to the public reached 0.34% at the end of 2013 compared with 0.39% at the end of 2012.
Fees and other income totaled NIS 5.241 billion in 2013, up 0.4% from NIS 5.222 billion in 2012. Operating and other expenses totaled NIS 8.965 billion in 2013, up 1.6% from NIS 8.825 billion in 2012, including a provision of about NIS 440 million for the efficiency plan, which is primarily based on early retirement expenses. Excluding this provision, operating expenses decreased year-over-year.
In the fourth quarter of 2013, Bank Hapoalim reported net profit of NIS 651 million, slightly down from NIS 652 million in the corresponding quarter of 2012. Profit from financing activity in the fourth quarter was NIS 2.07 billion, down from NIS 2.11 billion in the corresponding quarter of 2012.
The bank will distribute a dividend of NIS 106 million on fourth quarter profits.
The NIS 440 million set aside for the efficiency plan includes shedding jobs and downsizing and merging branches. Details were not disclosed but 500 jobs are believed to be involved.
Bank Hapoalim CEO Zion Kenan said, "The financial results that we present today are proof of the success of our strategy, which is based on two essential principles - growth and stability. The core banking and organizational capabilities of Bank Hapoalim ensure the continuation of our leadership position in the Israeli banking system. These results are particularly outstanding considering the complex business conditions in which we operate."
He added, "Our commitment to focus on growth drivers enabled Bank Hapoalim to increase net profit in 2013 despite a challenging interest rate environment, a gradual slowdown in certain areas of the economy, and challenges associated with the tough regulatory regime."
Kenan's salary cost in 2013 was NIS 9.85 million.
Published by Globes [online], Israel business news - www.globes-online.com - on March 20, 2014
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