#Israel's Bank Hapoalim beats profit expectations, resumes dividends | Reuters

Israel's Bank Hapoalim beats profit expectations, resumes dividends | Reuters

Bank Hapoalim (POLI.TA) reported a smaller-than-expected fall in quarterly profit while returning to dividend payouts and loan default provisions.

One of Israel's two largest lenders, Hapoalim reported a net profit of 1.34 billion shekels ($414 million) for the April-June quarter, beating the 1.26 billion forecast by analysts in a Reuters poll but down from 1.42 billion a year earlier.

Net interest income rose 27% to 3.19 billion shekels helped by higher inflation levels and Bank of Israel interest rate increases.

With inflation rising above 4%, the central bank in April began to raise its benchmark interest rate, bringing it to 1.25% in July from 0.1% in April.