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By Steven Scheer
JERUSALEM, March 9 (Reuters) - Bank Hapoalim reported a near doubling of net profit in the fourth quarter on
Thursday, helped by a sharp rise in interest rates that boosted
financing income.
Hapoalim, one of Israel's two largest lenders and the first
of Israel's banks to issue quarterly results, said it earned a
net 1.75 billion shekels ($487 million) in the quarter ended
Dec. 31, compared with a profit of 934 million shekels a year
earlier.
Helped by aggressive Bank of Israel rate hikes to fight
inflation, net interest income jumped to 3.9 billion shekels
from 2.5 billion. Its provision for credit losses was 430
million shekels compared with 187 million shekels last year.
Inflation in Israel has reached a 2008-high of 5.4%, above
the government's 1-3% target. The central bank responded with a
series of rate increases that brought the key rate to 4.25% from
0.1% last April. At least one more hike is expected in the
current cycle.
Hapoalim said it would pay a dividend of 525 million
shekels, or 30% of the fourth-quarter net profit, after resuming
ongoing dividends in the second quarter.
Its ratio of common equity Tier-1 capital to risk components
capital rose to 11.25% by the end of 2022 from 10.96% in 2021.
The bank's credit portfolio grew 1.9% in the
October-December period and 10.2% for all of 2022, with
corporate funding leading the growth. Housing loans also rose,
although consumer credit declined last year, the bank said.
Hapaolim's board approved a new five-year strategic plan
aimed at strengthening its leadership in core banking, boosting
productivity, and increasing innovation.
($1 = 3.5906 shekels)
(Reporting by Steven Scheer; Editing by Shri Navaratnam and
Janane Venkatraman)
Messaging: steven.scheer.thomsonreuters.com@reuters.net;
Twitter: @StevenMScheer))
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