Bank Hapoalim (TASE: POLI) has reported a net profit of NIS 2.8 billion in the third quarter of 2025, up 8.4% from the corresponding quarter of 2024. Net profit was affected by one-time revenue of NIS 380 million after tax, due to a settlement with the US tax investigation. Excluding the one-time event, net profit would have fallen by 6.5%.
The bank presented an exceptional high double-digit return on capital of 17.6%. In contrast to Bank Leumi, which distributed a dividend of 75% of net profit, Hapoalim chose to distribute a more modest share of its profits, "only" 50% (until the first quarter, banks were only allowed to distribute 40% of their profits). Hapoalim will distribute NIS 1.1 billion to shareholders and buy back shares for NIS 276 million.
Bank Hapoalim's total revenue in the third quarter was NIS 6.7 billion, a sharp increase of 20% from the corresponding quarter. The increase was also affected by the settlement agreement in the US, as well as an increase in financing profit due to significant growth in activity and an increase in non-interest revenue. The bank reported double-digit annual growth of over 10% in lending. In the third quarter, Hapoalim’s credit portfolio grew 2.2%, and since the start of 2025, by 8.1%. Growth was diverse, Hapoalim says, and was reflected in all sectors of activity, while balancing risk, growth and profitability, and continuing to present good credit quality indicators.
High amount set aside for credit losses
Unlike Israel’s other big banks, Hapoalim set aside a high amount for credit losses. The bank recorded an expense for credit losses of NIS 347 million, a decrease of 14% from the corresponding quarter (Leumi recorded a 90% drop in this figure).
Most of Hapoalim's expense was due to a group provision, meaning that the bank did not identify a specific problem but was preparing for the future and a scenario in which the economy could change direction. The bank explained that the provisions came due to the growth of the credit portfolio and the continued uncertainty in the economic environment.
Bank Hapoalim's share price has risen by 70% over the past year, with the bank's market cap rising to NIS 92 billion, making it the second most valuable stock on the Tel Aviv Stock Exchange (TASE), after Bank Leumi. Over the past five years, investors in Hapoalim shares have more than tripled their money.
Published by Globes, Israel business news - en.globes.co.il - on November 20, 2025.
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