Monday 23 May 2022

#Israel's Bank Hapoalim looks to resume dividends in second quarter | Reuters

Israel's Bank Hapoalim looks to resume dividends in second quarter | Reuters

Bank Hapoalim (POLI.TA) reported an estimate-beating quarterly profit on Monday, helped by a spike in inflation that boosted financing income, and said it hoped to resume regular dividend payouts from the second quarter.

Amid further unwinding of pandemic loan default provisions, Hapoalim, one of Israel's two largest lenders, earned 1.654 billion shekels ($494 million) in the first quarter, compared with 1.354 billion shekels a year earlier and a forecast of 1.1 billion shekels in a Reuters poll of analysts.

Hapoalim opted against a dividend distribution for a second quarter, citing the need for caution in the current economic environment and a possible global economic slowdown.

"The Bank aspires to return to a trajectory of ongoing dividend distribution soon ... potentially ... in the second quarter of 2022 and onward," it said.

Hapoalim pointed to a Tier 1 capital ratio of 11.17% at the end of March, up from 10.96% at the end of 2021, as proof of its solid financial footing along with a "resilient" credit portfolio with low loan defaults.

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