Boosted by a hike in interest rates, Bank Hapoalim (TASE: POLI) reported a 48% jump in profit for the third quarter of 2022 to NIS 1.79 billion. Together with a strong first half of the year, the bank earned net profit of NIS 4.8 billion in the first nine months of 2022, up 20% from the corresponding period of 2021.
Bank Hapoalim’s revenue in the third quarter was NIS 4.753 billion, up 30.4% from the corresponding quarter of 2021. Net credit to the public in the third quarter of 2022 totaled NIS 381.6 billion, compared with NIS 372.0 billion in the preceding quarter, an increase of 2.6%. Net credit to the public grew by 8.2% compared to the end of 2021, and by 13.8% compared with the corresponding quarter.
Bank of Israel hikes rate by 0.5%
Growth in the credit portfolio in recent quarters was broad-based and due to the changing macroeconomic environment. In the third quarter, corporate credit increased by 2.1%, commercial credit grew 3.7%, and housing loans grew by 2.2%. Compared to the corresponding quarter last year, these segments grew by 15.2%, 13.9%, and 14.9%, respectively. Consumer credit stayed relatively flat this quarter and increased by 1.7% versus the corresponding quarter last year. Small business credit grew by 0.7% and 8.6%, quarter-on-quarter and year-on-year, respectively.
Bank Hapoalim is not concerned by the rise in interest rates and has meanwhile only set aside NIS 45 million for credit losses, mainly because the Bank of Israel has instructed banks to set aside 1.5% of all the loans they extend. Hapoalim said it would pay a dividend of 536 million shekels, or 30% of third quarter net profit, after resuming ongoing dividends in the second quarter.
Published by Globes, Israel business news – en.globes.co.il – on November 23, 2022.
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