Bank Hapoalim Announces First Quarter 2026 Results

Rhea-AI Summary

Bank Hapoalim (OTC:BKHPF) reported first quarter 2026 results showing net profit of NIS 2,124 million and ROE of 13.0%, despite a special banks tax that reduced ROE by 130–140 bps annually.

Credit grew 3.3% QoQ and 14.0% YoY; the NPL ratio fell to 0.44% with 330% coverage. Credit loss expenses were 0.03%. The Board approved a 50% payout: NIS 850 million dividend (NIS 0.65 per share) and NIS 212 million in buybacks.

Income from regular financing activity rose 2% QoQ; the financial margin edged up to 2.44%. Fee income increased 0.5% QoQ and 5.3% YoY. Expenses declined 10.3% QoQ (1.6% excluding a Q4 2025 one-off), with a cost-income ratio of 36.6%.

Net credit to the public reached NIS 519 billion and deposits NIS 603 billion. The CET1 ratio was 11.71%, above regulatory and internal targets, and LCR stood at 128%. The allowance for credit losses totaled NIS 8.9 billion, 1.68% of total credit.

Positive

• Net profit NIS 2,124m with 13.0% ROE in Q1 2026
• Credit portfolio up 3.3% QoQ and 14.0% YoY
• NPL ratio 0.44% with 330% coverage and 0.03% credit loss expense
• 50% payout: NIS 850m dividend and NIS 212m share buybacks
• Total expenses down 10.3% QoQ; cost-income ratio 36.6%
• CET1 ratio 11.71% vs 10.23% regulatory minimum and 11.0% internal target

Negative

• Special banks tax reduced ROE by approximately 130–140 bps annually
• Non-regular financing activity recorded a small loss in the quarter
• Two rate cuts since November reduced the average rate by about 40 bps vs Q4

News Market Reaction – BKHYY

-3.86%

-3.86% Session close to close

In the May 14 session, BKHYY declined 3.86%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement details a quarter of strong profitability and improving asset quality, with net pr...

Analysis

This announcement details a quarter of strong profitability and improving asset quality, with net profit of NIS 2,124 million, ROE of , and an NPL ratio of 0.44%. Capital and liquidity positions appeared solid, including a CET-1 ratio of 11.71% and LCR of 128%. Investors may focus on how credit growth trends, cost discipline, and the impact of rate cuts and special taxes shape future earnings and returns.

Key Figures

Net profit: NIS 2,124 million ROE: 13.0% Credit growth QoQ: 3.3% +5 more

8 metrics

Net profit NIS 2,124 million First quarter of 2026

ROE 13.0% First quarter of 2026, including special banks tax impact

Credit growth QoQ 3.3% Credit growth in the quarter

Credit growth YoY 14.0% Year-over-year credit growth

NPL ratio 0.44% Non-performing loans ratio, first quarter 2026

Coverage ratio 330% Coverage ratio on credit portfolio

CET-1 ratio 11.71% Common Equity Tier 1 vs 10.23% regulatory minimum and 11.0% internal target

Cost-income ratio 36.6% First quarter 2026 operating efficiency metric

Key Terms

roe, npl ratio, credit loss expenses, cost-income ratio, +3 more

7 terms

roe financial

"Net profit in the quarter totaled NIS 2,124 million, with ROE of 13.0%."

Return on equity (ROE) measures how much profit a company generates from the money shareholders have invested, like checking how effectively a chef turns ingredients into meals. Investors use it to compare how well companies turn investor funds into earnings—higher ROE usually means management is using capital more efficiently, while a low ROE can signal weaker profitability or poor use of equity.

View in glossary

npl ratio financial

"credit quality metrics continued to improve, with the NPL ratio declining to 0.44%"

The NPL ratio measures the share of a lender’s loans that are not being repaid on schedule — loans that are overdue or in default — expressed as a percentage of total loans. Investors use it like counting rotten apples in a fruit basket: a higher percentage signals greater credit stress and potential losses, which can hurt a bank’s profits, capital strength and future lending ability.

credit loss expenses financial

"Credit loss expenses were low, at 0.03%, supported by improved risk indicators"

Credit loss expenses are the amounts a company sets aside to cover loans, receivables or other promised payments it expects may not be repaid. Think of it as a rainy-day fund for unpaid bills; higher expense suggests more borrowers are struggling and reduces current profit, so investors watch it to judge the health of a lender’s assets and the likely future strength of earnings and capital.

cost-income ratio financial

"The cost-income ratio stood at 36.6%."

Cost-income ratio measures the share of a company's operating costs compared with its income, expressed as a percentage—it shows how much of every dollar of revenue is eaten by running the business. Investors use it like a fuel-efficiency gauge for a company: a lower ratio means the business keeps more revenue as profit and runs efficiently, while a higher ratio suggests costs are large or revenue is weak, which can hurt margins and valuation.

cet-1 ratio financial

"CET-1 ratio of 11.71%, well above the 10.23% minimum regulatory requirement"

The CET1 ratio measures a bank’s core capital—mainly common shares and retained earnings—relative to its assets after adjusting for how risky those assets are. Think of it as the cushion a bank keeps against losses: a higher CET1 ratio means a bigger buffer to absorb bad loans or market shocks, which matters to investors because it affects a bank’s safety, regulatory standing, dividend capacity, and borrowing costs.

lcr financial

"Capital and liquidity ratios remain strong, with a CET-1 ratio ... LCR stood at 128%."

Liquidity Coverage Ratio (LCR) measures a bank’s stock of high-quality liquid assets compared to its expected net cash outflows over the next 30 days, expressed as a percentage. Think of it as a household’s emergency fund that must cover a month of bills: a higher LCR signals a bank is better positioned to survive short-term stress without selling long-term assets, which matters to investors because it affects safety, regulatory compliance, and short-term funding risk.

mark-to-market financial

"due to mark-to-market of shares and fair value adjustments on derivatives."

"Mark-to-market" is a method of valuing assets or investments based on their current market price, rather than their original cost or value. It helps investors see the most up-to-date worth of their holdings, much like checking the latest price of a stock before deciding to buy or sell. This approach ensures that financial statements reflect real-time value, providing a clearer picture of overall financial health.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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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.

Photo: https://mma.prnewswire.com/media/2978199/Yadin_Antebi.jpg
Logo: https://mma.prnewswire.com/media/2978200/Bank_Hapoalim_logo.jpg

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/bank-hapoalim-announces-first-quarter-2026-results-302772039.html

SOURCE Bank Hapoalim

FAQ

What were Bank Hapoalim (BKHPF) Q1 2026 profits and return on equity?

Bank Hapoalim reported net profit of NIS 2,124 million and ROE of 13.0% in Q1 2026. According to Bank Hapoalim, a special banks tax reduced ROE by 130–140 basis points annually; excluding this, ROE exceeded 14%.

How did Bank Hapoalim (BKHPF) credit portfolio and asset quality change in Q1 2026?

Bank Hapoalim credit grew 3.3% quarter-over-quarter and 14.0% year-over-year in Q1 2026. According to Bank Hapoalim, the non-performing loan ratio declined to 0.44%, coverage reached 330%, and credit loss expenses were low at 0.03%, supported by improved risk indicators.

What dividend and share buyback did Bank Hapoalim (BKHPF) declare for Q1 2026?

The Board approved distributing 50% of Q1 2026 net profit to shareholders. According to Bank Hapoalim, this includes a cash dividend of NIS 850 million (NIS 0.65 per share) and NIS 212 million allocated to share repurchases under its payout policy.

How did Bank Hapoalim (BKHPF) revenues and margins perform in Q1 2026?

Income from regular financing activity rose 2% quarter-over-quarter in Q1 2026, and the financial margin increased slightly to 2.44%. According to Bank Hapoalim, fee income grew 0.5% quarter-over-quarter and 5.3% year-over-year, while non-regular financing activity posted a small loss.

What cost and efficiency metrics did Bank Hapoalim (BKHPF) report for Q1 2026?

Total expenses declined 10.3% versus the prior quarter in Q1 2026. According to Bank Hapoalim, excluding a one-off Q4 2025 expense, costs fell 1.6%, and the cost-income ratio stood at 36.6%, indicating continued focus on operating efficiency and cost discipline.

What were Bank Hapoalim (BKHPF) capital and liquidity ratios at March 31, 2026?

Bank Hapoalim reported a Common Equity Tier 1 (CET1) ratio of 11.71% and a Liquidity Coverage Ratio of 128%. According to Bank Hapoalim, CET1 was above the 10.23% regulatory minimum and its 11.0% internal target, signaling robust capital strength.

How large were Bank Hapoalim (BKHPF) credit, deposits, and loss allowances in Q1 2026?

Net credit to the public reached NIS 519 billion and deposits totaled NIS 603 billion at March 31, 2026. According to Bank Hapoalim, the allowance for credit losses was NIS 8.9 billion, mainly collective, representing 1.68% of total credit exposure.