Q1 2026 Bank Hapoalim BM Earnings Call Transcript
Key Points
- Bank Hapoalim BM (BKHPF) reported a strong start to 2026 with a net profit of ILS2.1 billion and a return on equity of 13%.
- The bank achieved impressive credit portfolio growth of 14% over the last 12 months, with a 3.3% increase since the beginning of the year.
- The non-performing loan (NPL) ratio continued to drop, now standing at 0.44%, indicating improved portfolio quality.
- Bank Hapoalim BM (BKHPF) maintained a high capital ratio comfortably above the minimum requirements, with a CET1 capital ratio of 11.71%.
- The bank distributed 50% of net profit as dividends, aligning with its target and demonstrating a strong commitment to shareholder returns.
- The special tax payments applied to Israeli banks in 2026 are expected to impact Bank Hapoalim BM (BKHPF) by ILS950 million, affecting the return on equity.
- Nonregular financing activity recorded a small loss due to market volatility, impacting the bank's overall financial performance.
- The bank's CET1 ratio decreased slightly from almost 12% to 11.71% quarter-on-quarter, reflecting the impact of strong growth in risk-weighted assets.
- Despite a strong performance, the bank's expenses were down only moderately by 1.6% when excluding a previous provision, indicating potential challenges in cost management.
- The geopolitical situation, including the confrontation with Iran, led to a significant contraction in GDP during the first quarter, posing macroeconomic challenges.
Ladies and gentlemen, thank you for standing by. Welcome to the Bank Hapoalim first quarter of 2026 results conference call webinar.
For your convenience, this call will be accompanied by a presentation. May we suggest if you've not yet done so, that you access the presentation on the bank's website, www.bankhapoalim.com by clicking on Financial Information on the homepage and then click on the first quarter 2026 report presentation. (Operator Instructions) As a reminder, this conference is being recorded, May 14, 2026.
With us on the line today are Mr. Ram Gev, CFO; Mr. Victor Bahar, Chief Economist; and Ms. Tamar Koblenz, Head of Investor Relations. I would like to remind everyone that forward-looking statements for the respective company's business, financial condition and results of its operations are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated.
Such forward-looking statements include, but are not limited to, product demand, pricing,
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
