TEL AVIV, Israel, March 11, 2021 (GLOBE NEWSWIRE) -- Bank Hapoalim (TASE: POLI) (ADR: BKHYY), today announced its financial results for the fourth quarter and full year ended December 31, 2020.

Key financial highlights:  

Leadership comments:

Ruben Krupik, Chairman of the Board of Directors:

"This past year has taught us that the unexpected can and will happen, but has also shown that financial robustness, sound judgment, and good leadership can overcome any crisis. Bank Hapoalim, in keeping with its strong standing in the financial industry, responded to the new realities with speed and precision, maintaining a high level of service for its customers and attaining its objectives in the areas of efficiency, growth, and corporate strategy.

In what has become a tradition, "Poalim in the Community" has continued in its social mission during this extraordinary year, and has expanded its work mainly in the field of employment and assistance to job seekers.

The ramifications of the crisis and the continually evolving conditions in the business environment in general, and in banking in particular, have created significant challenges which we must still confront. I am confident that the Bank is prepared for the future, with its talented and dedicated management, as it upholds its commitment to growth and service through innovative, fair banking for its customers.

I would like to extend my deep gratitude and appreciation to the Bank's employees, who in such a complex year have recruited extraordinary dedication, commitment and character, and to the Bank's management led by Dov Kotler for the talent, quality and dedication in running the Bank's business."

Mr. Dov Kotler, President and CEO:

"A year has now passed since the outbreak of the coronavirus pandemic in Israel, and of the subsequent economic crisis, which is still ongoing. A year ago, we saw uncertainty on the horizon, but we did not have a clear perception of the crisis yet. While there is much optimism about the recovery of the Israeli economy after the pandemic, uncertainty is still prevalent and many challenges lie ahead.

This was not an easy year for our customers – households and businesses alike. But in this challenging time, we stood by them, helping them cope with the hardships: we deferred loan and mortgage payments, granted state-backed loans to businesses, founded a loan fund for self-employed people, enhanced service at the branches of the Bank, and, of course, enabled thousands of employees to provide full service while working from home.

Despite this difficult year, we continued to demonstrate high financial robustness; we grew our credit portfolio, driven by housing credit and commercial credit, adapting to the latest developments; we continued the progress of our efficiency plan; we entered the digital wallet space and developed new collaborations; and we created platforms for our customers to do business in the United Arab Emirates and Bahrain. On the organizational level, we streamlined and shortened processes, sharpened our focus on our goals, and adopted a new organizational culture adapted to the challenges of today's banking universe.

As the leading financial institution in Israel, we have a responsibility to set an example of corporate conduct during a prolonged period of uncertainty, and I believe the bank will continue to serve as a role model. I would like to thank the Chairman of the Board, Ruben Krupik, the members of the board of directors, and the dedicated employees of the bank, who have resolutely pursued their mission even during challenging times, and who are there for our customers, driven by a sense of commitment and responsibility.”

Recent mentions:

Key developments in the 2020 annual financial statements:

Key developments in balance sheet items:

Conference Call Information:

Bank Hapoalim will host a conference call today to discuss the results. The call will take place at 5:00 p.m. Israel time/ 3:00 p.m. UK time/ 10:00 a.m. Eastern time. To access the conference call, please dial: 1-888-281-1167 toll free from the United States; 0-800-917-5108 toll free from the United Kingdom; or 972-3-9180610 internationally. No password is required. The call will be accompanied by a slide presentation, which, together with the financial statements, will be available on the Bank's website at www.bankhapoalim.com, under Investor Relations, Financial Information. A recording of the conference call will be available on the Bank's website at the above address one business day following the completion of the call.

Please note: The conference call does not replace the need to peruse the immediate reports and the Financial Statements of the Bank, including all the forward-looking information included therein in accordance with Section 32A of the Israeli Securities Law, 1968.

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About Bank Hapoalim:

Bank Hapoalim is Israel's leading financial group. In Israel, the Bank Hapoalim operates 189 full-service retail branches, regional business centers and specialized industry relationship managers for major corporate customers. The Bank Hapoalim Group includes holdings in financial companies involved in investment banking, trust services and portfolio management. Internationally, commercial banking services are provided in North America by the New York branch. Bank Hapoalim is listed on the Tel Aviv Stock Exchange (TASE: POLI) and holds a Level-1 ADR program. For more information about Bank Hapoalim, please visit us online at www.bankhapoalim.com

Please note: This press release was prepared for convenience only. In case of any discrepancy, the Bank's reported financial statements in Hebrew will prevail.

Contact:

Karen Mazor, Head of Investor Relations
T: +972 3 5673440  
E: Karen.mazor@poalim.co.il



Table 1-1: Condensed financial information and principal performance indicators over time

 For the year ended December 31 
 2020 2019  2018  2017  2016  
Main performance indicators         
Return of net profit on equity attributed to shareholders of the Bank5.35%4.62% 7.06% 7.50% 7.72% 
Return of net profit on equity attributed to shareholders of the Bank
excluding extraordinary items(1)		5.74%7.13% 9.74% 9.44% 10.04% 
Return of net profit from continued operations on equity attributed to shareholders of the Bank5.63%3.86% 6.07% 6.61% 6.92% 
Return of net profit from continued operations on equity attributed to shareholders of the Bank excluding extraordinary items(2)5.74%6.72% 8.75% 8.55% 9.23% 
Return on average assets0.41%0.39% 0.57% 0.58% 0.60% 
Ratio of income to average assets1.99%2.17% 2.29% 1.99% 2.07% 
Efficiency ratio – cost-income ratio from continued operations56.9%66.4% 65.1% 64.6% 63.2% 
Efficiency ratio – cost-income ratio excluding extraordinary items from continued operations(2)56.7%58.1% 57.8% 59.1% 59.2% 
Financing margin from regular activity(3)1.98%2.26% 2.31% 2.13% 2.05% 
Liquidity coverage ratio(4)140%121% 120% 122% 124% 
          
 December 31 
 2020 2019  2018  2017  2016  
Ratio of common equity Tier 1 capital to risk components(5)11.52%11.53% 11.16% 11.26% 11.01% 
Ratio of total capital to risk components(5)14.60%14.64% 14.39% 14.64% 15.11% 
Leverage ratio(5)6.78%7.61% 7.51% 7.37% 7.25% 
          
(1) Does not include expenses in respect of the update of the provision in connection with the investigation of the Bank Group’s business with American customers and FIFA, the effect of the closure of the private-banking activity overseas, net profit or loss from the separation from Isracard, and loss from impairment in respect of the Bank’s investment in Bank Pozitif.  
(2) Does not include expenses in respect of the update of the provision in connection with the investigation of the Bank Group’s business with American customers and FIFA, the effect of the closure of the private-banking activity overseas, and loss from impairment in respect of the Bank’s investment in Bank Pozitif.  
(3) Financing profit from regular activity (see the Report of the Board of Directors and Board of Management, in the section “Material developments in income, expenses, and other comprehensive income”) divided by total financial assets after allowance for credit losses, net of non-interest bearing balances in respect of credit cards.  
(4) For additional information, see the section "Liquidity and refinancing risk", in the Report of the Board of Directors and Board of Management.  
(5) For additional information, see the section "Capital, capital adequacy, and leverage", in the Report of the Board of Directors and Board of Management.  
   


Condensed financial information and principal performance indicators over time (continued) 
 For the year ended December 31 
 2020 2019  2018  2017  2016  
Main credit quality indicators         
Allowance for credit losses as a percentage of credit to the public2.00%1.58% 1.31% 1.36% 1.50% 
Impaired debts and debts in arrears of 90 days or more as a percentage of credit to the public1.52%1.80% 1.23% 1.31% 1.83% 
Net charge-offs as a percentage of average credit to the public0.09%0.12% 0.20% 0.21% 0.18% 
Provision for credit losses as a percentage of average credit to the public0.64%0.44% 0.22% 0.08% 0.07% 
          
Main profit and loss data         
 NIS millions 
Net profit attributed to shareholders of the Bank2,056 1,799  2,595  2,660  2,628  
Net profit attributed to shareholders of the Bank excluding extraordinary items(1)2,205 2,778  3,579  3,348  3,417  
Net profit from continued operations attributed to shareholders of the Bank2,165 1,503  2,231  2,346  2,354  
Net profit from continued operations attributed to shareholders of the Bank excluding extraordinary items(2)2,205 2,619  3,215  3,034  3,143  
Net interest income8,797 9,319  8,906  8,424  7,958  
Provision for credit losses1,943 1,276  613  202  179  
Net financing profit*9,885 9,878  10,351  9,076  9,121  
Non-interest income4,379 3,889  4,868  4,153  4,917  
Of which: fees3,155 3,240  3,318  3,338  3,617  
Operating and other expenses7,501 8,776  8,960  8,121  8,142  
Of which: salaries and related expenses3,836 4,108** 4,188** 4,300** 4,328** 
Total income13,176 13,208  13,774  12,577  12,875  
          
Net earnings per ordinary share (in NIS)         
Basic net earnings per share in NIS attributed to shareholders of the Bank from continued operations1.62 1.13  1.68  1.76  1.77  
          
* Net financing profit includes net interest income and non-interest financing income (expenses).
** Reclassified.
(1) Does not include expenses in respect of the update of the provision in connection with the investigation of the Bank Group’s business with American customers and FIFA, the effect of the closure of the private-banking activity overseas, net profit or loss from the separation from Isracard, and loss from impairment in respect of the Bank’s investment in Bank Pozitif.
(2) Does not include expenses in respect of the update of the provision in connection with the investigation of the Bank Group’s business with American customers and FIFA, the effect of the closure of the private-banking activity overseas, and loss from impairment in respect of the Bank’s investment in Bank Pozitif.
 


Condensed financial information and principal performance indicators over time (continued)
 December 31 
 2020 2019  2018  2017  2016  
 NIS millions 
Main balance sheet data         
Total assets539,602 463,688  460,926  454,424  448,105  
Of which: Cash and deposits with banks138,711 88,122  84,459  86,093  80,367  
Securities71,885 59,486  56,116  65,416  71,429  
Net credit to the public301,828 292,940  282,507  265,853  259,878  
Net problematic credit risk9,754 8,787  6,944  6,822  7,358  
Net impaired balance sheet debts2,517 3,034  2,158  2,121  3,094  
Total liabilities499,703 425,467  423,270  418,420  413,880  
Of which: Deposits from the public435,217 361,645  352,260  347,344  338,494  
Deposits from banks6,591 3,520  4,528  3,649  4,077  
Bonds and subordinated notes23,490 26,853  30,024  29,058  33,560  
Shareholders’ equity39,873 38,181  37,544  35,863  34,047  
Credit to the public not accruing interest income (NPL)3,208 3,867  2,178  2,073  3,480  
Additional data         
Share price at end of year (in NIS)22.0 28.7  23.7  25.6  22.9  
          
 For the year ended December 31 
 2020 2019  2018  2017  2016  
Total dividend per share (in agorot)*(1)53.94 74.90  37.17  64.53  51.44  
Average number of employee positions9,027 9,392** 9,846** 10,351** 10,676** 
Ratio of net interest income to average assets1.77%2.05% 1.97% 1.87% 1.80% 
Ratio of fees to average assets0.63%0.71% 0.73% 0.74% 0.82% 
          
* According to the date of declaration.
** Restated.
(1) Paid as a dividend in kind, in shares; calculated based on the value of Isracard shares on March 8, 2020 (NIS 10.91).