Bank Hapoalim Reports NIS 2.48 Billion Profit in Q2, Declares 50% Dividend Payout

Bank Hapoalim announced its financial results for the second quarter of 2026, reporting a net profit of NIS 2.48 billion and a return on equity of 15%. Excluding the impact of a recently imposed special tax on large banks by the Knesset, the bank's annualized return on equity exceeded 16%. The net profit declined by approximately 2.1% compared to NIS 2.54 billion in the same quarter last year but increased significantly from NIS 2.12 billion in the previous quarter.

Following the quarterly results, the bank's board approved a total distribution of about NIS 1.24 billion, representing 50% of the quarterly profits. Of this amount, NIS 995 million (approximately 76.1 agorot per share) will be paid as a cash dividend, while NIS 249 million will be allocated for a share buyback program.

The bank's credit portfolio continued its growth momentum with a 6.6% increase since the start of the year, driven by a 10% rise in business credit and a 9.6% increase in commercial credit. Credit quality remained high, with non-performing loans constituting only 0.5% of total public credit balances. Interest expenses slightly decreased due to a lower interest rate environment, while financing income from ongoing operations rose to NIS 5.1 billion from NIS 5.02 billion last year, mainly due to growth in average credit balances.

Loan loss expenses decreased to NIS 298 million from NIS 302 million in the same quarter last year. The bank improved its efficiency ratio to 30.6% from 32.8% last year, primarily due to reduced salary expenses. Bank CEO Yadin Antev emphasized the bank's continued significant growth and high profitability in Q2, alongside maintaining credit quality, and highlighted its leadership in supporting the growth and development of Israeli companies and businesses.