Company Announcements

TEL AVIV, Israel , May 14, 2026 /PRNewswire/ -- Bank Hapoalim (TASE: POLI) today reported solid financial results for the first quarter of 2026, reflecting strong profitability, continued credit growth, and improving asset quality.

Yadin Antebi, CEO: "Bank Hapoalim's performance reflects the resilience and financial strength of the Israeli economy which has continued to show stability, even during the period of war. In the first quarter, the Bank continued to demonstrate strong business growth, while maintaining high credit quality. Looking ahead, Bank Hapoalim will continue to play a leading role in supporting Israel's growth trajectory. We see excellent growth opportunities in the Israeli market."

• Net profit in the quarter totaled NIS 2,124 million, with ROE of 13.0%. The results include the impact of a special banks tax, which reduced ROE by approximately 130–140 basis points, on an annual basis. Excluding this effect, ROE exceeded 14%.
• Credit growth remained strong and well diversified, increasing by 3.3% in the quarter and 14.0% year-over-year, well above the Bank's target range. At the same time, credit quality metrics continued to improve, with the NPL ratio declining to 0.44% and a high coverage ratio of 330%. Credit loss expenses were low, at 0.03%, supported by improved risk indicators and recoveries.
• The Board of Directors declared a distribution of 50% of net profit, including a cash dividend of NIS 850 million, NIS 0.65 per share, and the remainder (NIS 212 million) through share buybacks, in line with the Bank's payout target.
• Income from regular financing activity increased by 2% quarter-over-quarter, supported by business growth and a less negative CPI impact. This was partly offset by two rate cuts since November, reducing the average rate by approximately 40 basis points versus Q4. Non-regular financing activity recorded a small loss. The reduction versus the previous quarter is mainly due to mark-to-market of shares and fair value adjustments on derivatives.
• The financial margin remains a relative strength, rising slightly to 2.44%. While impacted by lower rates, the CPI effect was more moderate this quarter.
• Fee income continued its steady upward trend, rising by 0.5% quarter-over-quarter and 5.3% year-over-year, driven by higher activity in securities and credit-related services.
• The Bank maintained strong cost discipline, with total expenses declining by 10.3% compared to the prior quarter. Excluding a one-off expense recorded in Q4 2025, expenses declined by 1.6%. The cost-income ratio stood at 36.6%.
• On the balance sheet, net credit to the public reached NIS 519 billion, while deposits totaled NIS 603 billion. Capital and liquidity ratios remain strong, with a CET-1 ratio of 11.71%, well above the 10.23% minimum regulatory requirement and 11.0% minimum internal target. LCR stood at 128%.
• The allowance for credit losses stood at NIS 8.9 billion as at March 31, 2026, of which NIS 8.6 billion attributed to the collective allowance. The total allowance constitutes 1.68% of total credit.
• The Bank continues to benefit from the resilience of Israel's economy and remains well positioned for continued growth across its core business segments.
• The full report is available at the following link: https://www.bankhapoalim.com/en/investor-relations/financial-information/reports

Contact info:
Tamar Koblenz 
Head of Investor Relations 
Investor.Relations@poalim.co.il 

Dr. Sharona Mazalian-Levi
Spokesperson
sml@poalim.co.il 

This press release contains forward-looking statements, as defined in the Israeli Securities Law, relating to future events or future performance.

This press release is provided for convenience purposes only and does not constitute a substitute for a full review of the Bank's latest periodic/quarterly reports, as filed with the Israel Securities Authority.

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SOURCE Bank Hapoalim