Bank Hapoalim profit jumps as it unwinds loss provisions | Reuters

Bank Hapoalim profit jumps as it unwinds loss provisions | Reuters

Bank Hapoalim (POLI.TA) reported a higher-than-expected jump in quarterly net profit, helped by a continued reversal of provisions to protect against loan defaults during the pandemic.

Hapoalim, one of Israel's two largest lenders, said on Monday it earned 1.42 billion shekels ($442 million) in the April-June period, compared with a 133 million a year before and with an average forecast of 1.03 billion in a Reuters poll of analysts.

Profit was boosted by reporting income for credit losses of 647 million shekels, up from 508 million in the first quarter when a successful vaccination campaign allowed Israel to begin to emerge from lockdowns, and versus second-quarter 2020 credit loss expenses of 1.13 billion.

"The income from credit losses in both quarters was supported by an improvement in economic indicators, which led to a reduction of the collective provision for credit losses, along with an individual allowance recovery," Hapoalim said.