Bank Hapoalim Shows Net Profits of $64.2 Million for First Quarter 2003.Business Editors TEL AVIV Tel Aviv (tĕl əvēv`), city (1994 pop. 355,200), W central Israel, on the Mediterranean Sea. Oficially named Tel Aviv–Jaffa, it is Israel's commercial, financial, communications, and cultural center and the core of its largest , Israel--(BUSINESS WIRE)--May 29, 2003 Bank Hapoalim's (LSE LSE - Language Sensitive Editor :BKHD BKHD Bulkhead ) (TASE TASE Tel Aviv Stock Exchange TASE The All Seeing Eye TASE Tactical Air Support Element TASE Thrust Assessment Support Environment TASE Telecontrol Application Service Elements (IEC communications protocol) :POLI POLI Escola Politécnica da Universidade de São Paulo (Portugese; USP São Paulo, Brazil) ) financial statements for the first quarter of 2003 reflect a significant increase in profitability with net profit rising 35.6% to $64.2 million, compared to $47.4 million in the first quarter of 2002. Net return on equity was 9.3%, compared with 6.8% for the same period last year and 2.7% for the whole of 2002. Shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. for the Group was $2.9 billion as of March 31, 2003, an increase of 2.9% over the end of 2002. Total consolidated assets of the Bank amounted to $56.4 billion. Credit granted to the general public was $40.7 billion, while deposits from the public amounted to $44.8 billion. The increase in the Bank's profit in the first quarter resulted mainly from a $76.8 million increase in profit from financing activities before provision for doubtful debts, and a $3.6 million increase in the share in the net profits of equity-basis investee companies. These factors were offset by a $42.7 million increase in the provision for doubtful debts, an $11.7 million increase in the provision for taxes on operating profits Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. and $5.5 million caused by changes in accounting principles concerning derivatives derivatives In finance, contracts whose value is derived from another asset, which can include stocks, bonds, currencies, interest rates, commodities, and related indexes. Purchasers of derivatives are essentially wagering on the future performance of that asset. and hedging activity. Profit from financing activities before provision for doubtful debts totaled $360.6 million in the first quarter of 2003, an increase of 27.1% over the same period last year. The provision for doubtful debts totaled $112.4 million, compared with $69.8 million for the same period in 2002, an increase of 61.2%. Operating and other income totaled $195.0 million compared with $193.7 million in the same period last year, an increase of 0.7%. Operating and other expenses from January to March 2003 totaled $310.2 million, an increase of 0.7% over the same period last year. Salary expenses were $183.5 million compared with $187.3 million in the first quarter of 2002, a decrease of 2.1%. The decrease mainly resulted from the streamlining program put into effect in the first quarter of 2003. The operational coverage ratio, measuring operating and other expenses by operating and other income excluding costs of early retirement programs, reached 63.3% in the first quarter of 2003 compared with 62.8% in the first quarter in 2002 and 66.7% for the whole of 2002. The ratio of expenses to income, calculated according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the ratio of operating and other expenses, excluding costs of early retirement programs, to profit from financing activities before provision for doubtful debts and operating and other income, reached 55.4% for the first quarter of 2003, compared with 64.6% in the first quarter of 2002, and 53.6% in the whole of 2002. The ratio of capital to risk assets on March 31, 2003 reached 10.08%, compared with 9.89% at the end of 2002. The ratio of core (Tier 1) capital to risk assets was 6.33% and the ratio of supplementary (Tier 2) capital was 3.77%. Banking subsidiaries in Israel contributed $7.5 million, compared with $8.5 million in the first quarter of 2002. Subsidiaries abroad ended the first quarter of 2003 with a profit of $3.0 million compared with a loss of $2.6 million in the first quarter of 2002. The Signature Group ended the first quarter of 2003 at break-even compared with a loss of $5 million in the first quarter of 2002. The full financial statements for the first three months of 2003 are available upon request, and can be accessed on the Bank's Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the site www.bankhapoalim.co.il. |
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