Bank Hapoalim quarterly profit up
Israel's largest lender posts third-quarter net profit of NIS 653 million slightly missing analysts' expectations
Bank Hapoalim reported a rise in quarterly net profit but slightly missed analysts' expectations as Israel's largest lender booked higher-than-expected provisions for credit losses.
Hapoalim on Wednesday posted a third-quarter net profit of 653 million shekels ($184.5 million), up from 625 million a year earlier and just missing expectations of 657 million in a Reuters poll of analysts.
Net financing income edged up to 2.117 billion shekels from 2.115 billion, while credit loss provisions rose to 375 million shekels from 286 million.
Analysts had forecast net financing income of 2.049 billion shekels and credit loss provisions of 297 million.
Hapoalim said the increase in the provisions "reflects a cautious approach towards the current state of the Israeli economy".
Hapoalim's core Tier 1 capital ratio to risk-weighted assets rose to 9.3 percent from 8.9 percent at the end of 2012.
Israel's banking regulator has required banks to hold core Tier 1 ratio of at least 9 percent by the start of 2015 as part of a global drive to strengthen the industry and prevent a repeat of the 2008 financial crisis.
The bank declared a dividend of 92 million shekels for the quarter, similar to the second quarter. In July the bank said it would reinstate a cash dividend on a regular quarterly basis for the first time since the global financial crisis in 2008.
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