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Bank Hapoalim Reports Stellar Q2 Results for 2026

Bank Hapoalim, one of Israel's leading financial institutions, has recently announced its impressive financial results for the second quarter of 2026. The figures reveal a notable increase in net profit alongside a healthy return on equity, providing a glimpse into the bank's resilient performance amid various economic challenges.

Financial Highlights

According to the report, the bank's net profit for the second quarter reached NIS 2,488 million, which is a significant increase compared to NIS 2,124 million recorded in the previous quarter. Year-over-year, this figure shows a slight decrease from NIS 2,542 million but underscores the challenges faced in the current economic environment. The return on equity (ROE) stood at 15.0%, up from 13.0% in Q1 2026 and slightly below the 16.7% achieved in the corresponding quarter last year.

In the first half of 2026, the total net profit accumulated was approximately NIS 4,612 million. Excluding the impacts of a special tax imposed on banks, the ROE figures rise to approximately 16.4% and 14.4% for Q2 and H1 respectively.

Growth Drivers

The robust quarterly performance was primarily driven by a 19.8% increase in total income compared to the previous quarter, mainly attributed to a 23.8% growth in financing income. The bank has noted the effective management of expenses, as total costs remained flat quarter-over-quarter. This effective cost control led to a favorable cost-income ratio of 30.6%.

Bank Hapoalim's credit portfolio saw favorable growth, achieving a 14.3% year-over-year increase and 3.3% quarter-over-quarter. Importantly, the bank reported strong credit quality, with a non-performing loan (NPL) ratio of just 0.50% and a coverage ratio of 284%.

Capital Position and Shareholder Returns

The bank's common equity tier 1 (CET-1) capital ratio stood at 11.83%, well above the minimum regulatory requirement. This healthy capital position reflects the bank's ability to absorb potential losses while still providing returns to its shareholders. In a significant move for investors, the board of directors has declared a distribution of 50% of the net profit. This includes a cash dividend of NIS 995 million and allocations for the ongoing share buyback plan.

CEO Yadin Antebi remarked, “Despite the constraints posed by the special bank tax and broader economic pressures, Bank Hapoalim remains committed to enhancing shareholder value while maintaining the robustness of our credit portfolio.”

Future Outlook

Looking ahead, Bank Hapoalim has set ambitious financial targets for the next two years. They aim for a net profit in the range of NIS 8.5-9.5 billion for 2026 and NIS 9.5-10.5 billion for 2027, alongside a target ROE between 13%-14% and 14%-15% respectively. The ongoing growth strategy is expected to support the bank’s trajectory in lending and investment activities.

In conclusion, Bank Hapoalim's solid financial results for Q2 2026 exemplify its steadfast resilience and strategic management in navigating a complex financial landscape. With a focus on growth and value creation for its stakeholders, the bank is poised for continued success in the foreseeable future.