Bank Hapoalim Announces First Quarter 2014 Financial Results

Bank Hapoalim Announces First Quarter 2014 Financial Results                        Net Profit totaled NIS 753 million                           Return on Equity of 10.7%                      Basel 3 Tier 1 Capital rose to 9.4% Cash Dividend Payout of NIS 106 million to be paid from First Quarter 2014 Net                                     Profit  TEL AVIV, Israel, May 22, 2014 (GLOBE NEWSWIRE) -- Bank Hapoalim (TASE:POLI) (ADR:BKHYY), Israel's leading financial group, today announced financial results for the first quarter ended March 31, 2014.  First Quarter 2014 Financial Highlights:     *Net profit totaled NIS 753 million compared with a profit of NIS 621     million in the same quarter last year.        *Return on equity reached 10.7%, compared with 9.5% in the same quarter     last year.        *Tier 1 Capital Ratio, in Basel 3 terms, stood at 9.44% at the end of the     first quarter 2014, compared with 9.15% at January 1, 2014.        *Total Capital Ratio, in Basel 3 terms, as at March 31, 2014 was 14.96%     compared with 14.68% on January 1, 2014.        *Quarterly Dividend - The Bank's Board of Directors approved the     continuation of the quarterly cash dividend distribution, at a rate of     approximately 15% of net profit, from its first quarter 2014 earnings in     the amount of NIS 106 million.  Main developments in the financial statements for the first quarter of 2014:  Profit from regular financing activity totaled NIS 1,795 million in the first quarter of 2014, up from a profit of NIS 1,773 million in the same quarter last year.  The financial margin from regular activity stood at 2.1% in the first quarter of 2014, similar to the same quarter last year.  Provision for credit losses in the first quarter of 2014 recorded income of NIS 15 million, compared with an expense of NIS 257 million in the same quarter last year.  Fees and other income totaled NIS 1,299 million in the first quarter of 2014 compared with NIS 1,287 million in the same quarter last year, an increase of 0.9%.  Operating and other expenses totaled NIS 2,156 million in the first quarter of 2014 compared with NIS 2,135 in the same quarter last year.  Dividend declared - The Bank's Board of Directors approved the continuation of the quarterly cash dividend distribution and declared a dividend with respect to the first quarter 2014 profits, of approximately NIS 106 million, which amounts to 8 agorot per share. The record date is May 29, 2014 and the date of payment is June 12, 2014.  Contribution to the community - The Bank's employees are involved in a varied and extensive range of community-oriented activities that take the form of social involvement, monetary donations, and large-scale volunteer activities. Bank Hapoalim's community-oriented activity during the first quarter of 2014 was expressed in a financial value of approximately NIS 18 million.  Developments in Balance Sheet Items:  The consolidated balance sheet as at March 31, 2014 totaled NIS 376.9 billion, compared with NIS 380.2 billion at the end of 2013, a decrease of 0.9%.  Net Credit to the public totaled NIS 250.2 billion, compared with NIS 251.6 billion at the end of 2013, a decrease of 0.5% mainly as a result of a decrease in corporate credit offset by an increase in retail, small business, and commercial credit.  Credit to Retail customers totaled NIS 102.0 billion compared with NIS 100.4 billion at the end of 2013, an increase of 1.5%. This includes consumer credit which totaledNIS 32.3 billion compared with NIS 31.4 billion at the end of 2013, an increase of 2.6%. Mortgages totaled NIS 58.4 billion compared with NIS 57.9 billion at the end of 2013, an increase of 0.9%.  Credit to Small Businesses totaled NIS 26.7 billion compared with NIS 26.2 billion at the end of 2013, an increase of 1.9%.  Credit to the Commercial segment totaled NIS 31.3 billion compared with NIS 31.1 billion at the end of 2013, an increase of 0.4%.  Deposits from the public totaled NIS 276.0 billion compared with NIS 276.5 billion at the end of 2013, a decrease of 0.2%, mainly a result of a shift in customers' investment preferences.  Shareholders' Equity totaled NIS 29.9 billion as at March 31, 2014, compared with NIS 29.1 billion at the end of 2013, an increase of 2.7%.  Conference Call Information  Bank Hapoalim will host a conference call as well as a slide presentation webcast today to review the First Quarter 2014 financial results at 10:00 a.m. U.S. Eastern Time / 3:00 p.m. UK Time / 5:00 p.m. Israel Time.  To access the call, please dial: 1-888-281-1167 in the U.S. and 1-866-485-2399 in Canada or (972) 3-9180685 for international participants. No password is required. The presentation slides, earnings release and the First Quarter 2014 financial statements are available at the Bank's website, www.bankhapoalim.com, under Investor Relations, Financial Information.  A replay of the conference call will be available beginning at approximately 1:00 p.m. U.S. Eastern Time / 6:00 p.m. UK Time / 8:00 p.m. Israel Time on Thursday, May 22, 2014 through 1:00 p.m. Eastern Time / 6:00 p.m. UK Time / 8:00 p.m. Israel Time on Thursday May 29, 2014 by telephone at (972) 3-9255918 (international).  The webcast replay will also be available by audio playback on the Bank Hapoalim website at www.bankhapoalim.com, under Investor Relations, Financial Information.  About Bank Hapoalim  Bank Hapoalim is Israel's leading financial group. In Israel, the Bank Hapoalim Group has over 260 branches, eight regional business centers, a network of 22 business branches and specialized industry relationship managers for major corporate customers.  The Bank Hapoalim Group includes Isracard Ltd, Israel's leading credit card company as well as financial companies involved in investment banking, trust services and portfolio management.  Internationally, Bank Hapoalim operates through branches, subsidiaries and representative offices, in North America, Latin America, Europe, the Far East, and Turkey. In these markets, the Bank is engaged in trade, corporate finance, private banking and retail banking.  Bank Hapoalim is listed on the Tel Aviv Stock Exchange. In addition, a Level-1 ADR is traded "over-the-counter" in New York.  For more information about Bank Hapoalim, please visit us online at www.bankhapoalim.com.  Principal Data of the Bank Hapoalim Group             (NIS millions)                                                                             Profit and             For the three months ended Profitability                       March 31,  Dec. 31,  Sept. 30,  June 30,  March 31,                        2014       2013      2013       2013      2013 Net financing income*  2,056      2,073     2,117      2,176     2,057 Fees and other income  1,299      1,394     1,278      1,282     1,287 Total income           3,355      3,467     3,395      3,458     3,344 Provision (income) for (15)       (59)      375        301       257 credit losses Operating and other    2,156      2,562     2,133      2,135     2,135 expenses Net profit attributed to shareholders of the 753        651       653        655       621 Bank                        March 31,  Dec. 31,  Sept. 30,  June 30,  March 31,                        2014       2013      2013       2013      2013 Balance Sheet –                                               Principal Data Total balance sheet    376,867    380,246   374,216    378,483   370,317 Net credit to the      250,232    251,600   249,341    247,120   247,782 public Securities             65,333     60,912    60,998     61,137    59,461 Deposits from the      276,014    276,525   269,632    274,601   265,297 public Bonds and subordinated 31,314     33,980    34,819     35,874    36,222 notes Shareholders' equity   29,855     29,060    28,391     27,808    27,279 Net total problematic  14,205     16,279    13,870     13,264    13,561 credit risk** Of which: net impaired 6,305      6,817     6,624      7,030     6,856 balance sheet debts**                                                               Main Financial Ratios  March 31,  Dec. 31,  Sept. 30,  June 30,  March 31,                        2014       2013      2013       2013      2013 Net loan to deposit    90.7%      91.0%     92.5%      90.0%     93.4% ratio Net loan to deposit ratio including bonds  81.4%      81.0%     81.9%      79.6%     82.2% and subordinated notes Shareholders' equity   7.9%       7.6%      7.6%       7.3%      7.4% to total assets Common equity Tier 1 capital according to   9.4%                                    Basel 3 Total capital          15.0%                                   according to Basel 3 Ratio of core capital to risk-adjusted       --        9.4%      9.3%       9.2%      9.1% assets according to Basel 2 Ratio of total capital to risk-adjusted       --        15.6%     15.7%      15.7%     15.6% assets according to Basel 2 Financing margin from regular                2.09%      2.13%     2.20%      2.16%     2.07% activity^(1)(2) Cost-income ratio^(5)  64.3%      61.2%     62.8%      61.7%     63.8% Total income to        3.6%       3.8%      3.6%       3.7%      3.7% assets^(3) Total expenses to      2.3%       2.8%      2.3%       2.3%      2.3% assets^(4) Provision (income) for credit losses as a percentage of the      (0.02%)    (0.09%)   0.59%      0.48%     0.41% average recorded balance of credit to the public^(1) Net return of profit attributed to          10.7%      9.4%      9.6%       9.9%      9.5% shareholders of the Bank on equity^(1) Basic net earnings per share in NIS attributed to          0.57       0.49      0.50       0.50      0.47 shareholders of the Bank                                                              * Net financing income includes net interest income and non-interest income (expenses). ** Net of the individual allowance, the allowance according to the extent of arrears, and the collective allowance in respect of problematic credit risk. (1) Calculated on an annualized basis. (2) Financing profit from regular activity (see the Board of Directors' report, in the section Profit and Profitability – Development of Financing Profit) is divided by total financial assets after allowance for credit losses, net of non-interest bearing balances in respect of credit cards. (3) Total income divided by the average balance of total assets. (4) Total operating and other expenses, divided by the balance of total average assets. (5) Does not include expenses for efficiency plans.  CONTACT: For further information please contact:          Press: Ofra Preuss, Bank's Spokesperson          Tel: +972-3-567-3635; Fax: +972-3-567-3500          spokesperson@mailpoalim.co.il           Investors: Effie Werber, Head of Investor Relations          Tel. +972-3-567-3440; Fax: +972-3-5673470          effie.werber@mailpoalim.co.il  
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