Key financial highlights:
- The bank's credit portfolio continues to grow – Net credit to the public totaled
NIS 292.9 billion , compared withNIS 282.5 billion at the end of 2018, an increase of 3.7%. - The improvement in quality of the bank's retail credit portfolio continued in 2019 – The provision for credit losses of private customers totaled
NIS 220 million in 2019, compared withNIS 455 million in 2018, a decrease of 51.7%. - Growth in housing credit – The portfolio of housing credit in
Israel totaledNIS 89.3 billion , compared withNIS 81.0 billion at the end of 2018, an increase of 10.2%. - Growth in commercial credit – Commercial credit totaled
NIS 40.1 billion , compared withNIS 37.5 billion at the end of 2018, an increase of 7.1%. - Human capital – The bank signed a wage agreement for 2018-2022 with the employee union during the first quarter of 2020. The bank has continued to implement efficiency measures; the number of employee positions at the bank group decreased by 463 in 2019. In addition, a voluntary-retirement program for over 900 employees for 2020-2022 was approved in
January 2020 . - Dividend distribution during the year – The bank distributed dividends in the amount of
NIS 1 billion in 2019. - Common equity Tier 1 capital ratio – The common equity Tier 1 capital ratio as at
December 31, 2019 , was 11.53%. - The bank reports significant progress in the negotiations of the tax investigation. In consequence, the bank recorded a provision of
NIS 897 million in the fourth quarter of 2019. - The direct and indirect effects of the Coronavirus outbreak in the fourth quarter of 2019 are reflected in an addition to the provision for credit losses, which led to an adverse effect on net profit in the amount of
NIS 450 million . The events of recent weeks may have a material negative impact on the results of the bank for 2020; however, at this stage it is not possible to estimate the full extent of such effects. - In light of these effects, net profit in 2019 totaled
NIS 1,799 million , compared withNIS 2,595 million in 2018, a decrease of 30.7%, which was mainly reflected in the results for the fourth quarter. - Adjusted net profit in 2019 totaled
NIS 2,778 million , compared withNIS 3,579 million , a decrease of 22.4%. This excludes expenses in respect of the provision in connection withthe United States authorities, the effect of the closure of the private-banking activity overseas, net profit from the sale of Isracard, and loss from impairment in respect of the Bank’s investment in Bank Pozitif. - The rate of net return on shareholders’ equity was 4.6% in 2019, compared with 7.1% in 2018. The adjusted rate of net return on shareholders’ equity was 7.1% in 2019, compared with 9.7% in 2018.
Commenting on the results, Mr.
The provisions for the investigation of
Commenting on the results, Mr.
In accordance with the focus areas established in our work plans,
On a personal note, I am completing my first six months in office as CEO of
We know that it is the nature of a pandemic, like an economic crisis, to eventually end. I am confident that together, we will resolutely withstand this crisis and emerge strengthened. I would like to take this opportunity to thank our wonderful employees, who have persisted in their work, coming in every day to provide service to our customers, with deep commitment and responsibility."
Key developments in the 2019 annual financial statements:
- Total income from regular financing activity, totaled
NIS 9,756 million in 2019, compared withNIS 9,575 million in 2018, an increase of 1.9%. - Fees and other income from activity in
Israel totaledNIS 3,330 million in 2019, compared withNIS 3,423 million in 2018, a decrease of 2.7%. - Net provision for credit losses, totaled
NIS 1,276 million in 2019, 0.44% of average total credit to the public, compared with a net provision for credit losses in the amount ofNIS 613 million in 2018, or 0.22% of the average total credit to the public.
Gross provision for credit losses, before the reduction of the individual allowance and debt recovery, was 0.76% in 2019, compared with 0.58% in 2018. - Operating and other expenses, totaled
NIS 8,776 million in 2019, compared withNIS 8,960 million in 2018, a decrease of 2.1%.
Key developments in balance sheet items:
- Consolidated balance sheet, totaled
NIS 463.7 billion as atDecember 31, 2019 , compared withNIS 460.9 billion at the end of 2018, an increase of 0.6%. - Net credit to the public, totaled
NIS 292.9 billion , compared withNIS 282.5 billion at the end of 2018, an increase of 3.7%. - Consumer credit in
Israel , totaledNIS 41.5 billion , compared withNIS 44.1 billion at the end of 2018, a decrease of 6.0%. - Housing loans in
Israel , totaledNIS 89.3 billion as atDecember 31, 2019 , compared withNIS 81.0 billion at the end of 2018, an increase of 10.2%. - Credit to small businesses in
Israel , totaledNIS 31.0 billion , compared withNIS 32.6 billion at the end of 2018, a decrease of 4.7%. - Credit to the commercial segment in
Israel , totaledNIS 40.1 billion , compared withNIS 37.5 billion at the end of 2018, an increase of 7.1%. - Credit to the corporate segment in
Israel , totaledNIS 75.7 billion , compared withNIS 71.9 billion at the end of 2018, an increase of 5.2%. Due to the discontinuation of the consolidation of Isracard, the credit balance includes loans granted to theIsracard Group , which were included for the first time in the second quarter of 2019, in the amount of approximatelyNIS 3.6 billion . - Deposits from the public, totaled
NIS 361.6 billion , compared withNIS 352.3 billion at the end of 2018, an increase of 2.7%. - Deposits from consumers in
Israel , totaledNIS 188.8 billion , compared withNIS 187.1 billion at the end of 2018, an increase of 0.9%. - Deposits from small businesses in
Israel , totaledNIS 46.0 billion , compared withNIS 42.4 billion at the end of 2018, an increase of 8.4%. - Shareholders' equity, totaled
NIS 38.1 billion , compared withNIS 37.5 billion at the end of 2018, an increase of 1.7%. - Total capital ratio, as at
December 31, 2019 was 14.64%, compared with 14.39% as atDecember 31, 2018 .
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.
Conference Call Information:
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 call will be made available on the Bank's website at the above address 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.
About
Contact:
Head of Investor Relations
T: +972 3 5673440
E: Karen.mazor@poalim.co.il
Condensed financial information and principal performance indicators over time
For the year ended | ||||||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||
Main performance indicators | ||||||||||||||
Return of net profit on equity attributed to shareholders of the Bank | 4.62 | % | 7.06 | % | 7.50 | % | 7.72 | % | 9.61 | % | ||||
Return of net profit on equity attributed to shareholders of the Bank excluding extraordinary items(1) | 7.13 | % | 9.74 | % | 9.44 | % | 10.04 | % | 9.61 | % | ||||
Return of net profit from continued operations on equity attributed to shareholders of the Bank(5) | 3.86 | % | 6.07 | % | 6.61 | % | 6.92 | % | 8.74 | % | ||||
Return of net profit from continued operations on equity attributed to shareholders of the Bank excluding extraordinary items(2)(5) | 6.72 | % | 8.75 | % | 8.55 | % | 9.23 | % | 8.74 | % | ||||
Return on average assets | 0.39 | % | 0.57 | % | 0.59 | % | 0.60 | % | 0.73 | % | ||||
Ratio of income to average assets | 2.17 | % | 2.29 | % | 1.99 | % | 2.07 | % | 2.13 | % | ||||
Efficiency ratio – cost-income ratio from continued operations | 66.44 | % | 65.05 | % | 64.57 | % | 63.24 | % | 59.63 | % | ||||
Efficiency ratio – cost-income ratio excluding extraordinary items from continued operations(2) | 58.13 | % | 57.82 | % | 59.10 | % | 59.22 | % | 59.63 | % | ||||
Financing margin from regular activity(3) | 2.26 | % | 2.31 | % | 2.13 | % | 2.05 | % | 2.05 | % | ||||
Liquidity coverage ratio(4) | 121 | % | 120 | % | 122 | % | 124 | % | 99.00 | % | ||||
2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||
Ratio of common equity Tier 1 capital to risk components(5) | 11.53 | % | 11.16 | % | 11.26 | % | 11.01 | % | 9.63 | % | ||||
Ratio of total capital to risk components(5) | 14.64 | % | 14.39 | % | 14.64 | % | 15.11 | % | 14.36 | % | ||||
Leverage ratio(5) | 7.61 | % | 7.51 | % | 7.37 | % | 7.25 | % | 7.10 | % | ||||
For the year ended | ||||||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||
Main credit quality indicators | ||||||||||||||
Allowance for credit losses as a percentage of credit to the public | 1.58 | % | 1.31 | % | 1.36 | % | 1.50 | % | 1.58 | % | ||||
Impaired debts and debts in arrears of 90 days or more as a percentage of credit to the public | 1.80 | % | 1.23 | % | 1.31 | % | 1.83 | % | 2.27 | % | ||||
Net charge-offs as a percentage of average credit to the public | 0.12 | % | 0.20 | % | 0.21 | % | 0.18 | % | 0.08 | % | ||||
Provision for credit losses as a percentage of average credit to the public | 0.44 | % | 0.22 | % | 0.08 | % | 0.07 | % | 0.17 | % | ||||
Main profit and loss data | ||||||||||||||
NIS millions | ||||||||||||||
Net profit attributed to shareholders of the Bank | 1,799 | 2,595 | 2,660 | 2,628 | 3,082 | |||||||||
Net profit attributed to shareholders of the Bank excluding extraordinary items(1) | 2,778 | 3,579 | 3,348 | 3,417 | 3,082 | |||||||||
Net profit from continued operations attributed to shareholders of the Bank | 1,503 | 2,231 | 2,346 | 2,354 | 2,802 | |||||||||
Net profit from continued operations attributed to shareholders of the Bank excluding extraordinary items(2) | 2,619 | 3,215 | 3,034 | 3,143 | 2,802 | |||||||||
Net interest income | 9,319 | 8,906 | 8,424 | 7,958 | 7,710 | |||||||||
Provision (income) for credit losses | 1,276 | 613 | 202 | 179 | 437 | |||||||||
Net financing profit* | 9,878 | 10,351 | 9,076 | 9,121 | 8,744 | |||||||||
Non-interest income | 3,889 | 4,868 | 4,153 | 4,917 | 4,996 | |||||||||
Of which: fees | 3,240 | 3,318 | 3,338 | 3,617 | 3,838 | |||||||||
Operating and other expenses | 8,776 | 8,960 | 8,121 | 8,142 | 7,577 | |||||||||
Of which: salaries and related expenses | 4,018 | 4,097 | 4,209 | 4,239 | 4,467 | |||||||||
Total income | 13,208 | 13,774 | 12,577 | 12,875 | 12,706 | |||||||||
Net earnings per ordinary share (in NIS) | ||||||||||||||
Basic net earnings per share in NIS attributed to shareholders of the Bank from continued operations | 1.13 | 1.68 | 1.76 | 1.77 | 2.11 | |||||||||
Condensed financial information and principal performance indicators over time (continued)
2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||
NIS millions | ||||||||||||||
Main balance sheet data | ||||||||||||||
Total assets | 463,688 | 460,926 | 454,424 | 448,105 | 431,638 | |||||||||
Of which: Cash and deposits with banks | 88,122 | 84,459 | 86,093 | 80,367 | 64,964 | |||||||||
Securities | 59,486 | 56,116 | 65,416 | 71,429 | 62,865 | |||||||||
Net credit to the public | 292,940 | 282,507 | 265,853 | 259,878 | 267,480 | |||||||||
Net problematic credit risk | 8,787 | 6,944 | 6,822 | 7,358 | 9,171 | |||||||||
Net impaired balance sheet debts | 3,034 | 2,158 | 2,121 | 3,094 | 4,257 | |||||||||
Total liabilities | 425,467 | 423,270 | 418,420 | 413,880 | 398,419 | |||||||||
Of which: Deposits from the public | 361,645 | 352,260 | 347,344 | 338,494 | 321,718 | |||||||||
Deposits from banks | 3,520 | 4,528 | 3,649 | 4,077 | 4,542 | |||||||||
Bonds and subordinated notes | 26,853 | 30,024 | 29,058 | 33,560 | 34,475 | |||||||||
Shareholders’ equity | 38,181 | 37,544 | 35,863 | 34,047 | 33,032 | |||||||||
Credit to the public not accruing interest income (NPL) | 3,867 | 2,178 | 2,073 | 3,480 | 4,928 | |||||||||
Additional data | ||||||||||||||
Share price at end of year (in NIS) | 28.7 | 23.7 | 25.6 | 22.9 | 20.1 | |||||||||
For the year ended | ||||||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||
Total dividend per share (in agorot)** | 74.90 | 37.17 | 64.53 | 51.44 | 42.87 | |||||||||
Average number of employee positions | 9,297 | 9,723 | 10,228 | 10,556 | 11,025 | |||||||||
Ratio of net interest income to average assets | 2.05 | % | 1.97 | % | 1.87 | % | 1.80 | % | 1.88 | % | ||||
Ratio of fees to average assets | 0.71 | % | 0.73 | % | 0.74 | % | 0.82 | % | 1.26 | % | ||||
* Net financing profit includes net interest income and non-interest financing income (expenses). | ||||||||||||||
** According to the date of declaration. | ||||||||||||||
(1) Does not include expenses in respect of the provision in connection with the investigation of the Bank Group’s business with American customers and | ||||||||||||||
(2) Does not include expenses in respect of the provision in connection with the investigation of the Bank Group’s business with American customers and | ||||||||||||||
(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 financial statements. | ||||||||||||||
(5) For additional information, see the section "Capital, capital adequacy, and leverage" in the financial statements. | ||||||||||||||
2020 GlobeNewswire, Inc., source