Bank Hapoalim Shows Net Profits of $75.4 Million for 2002.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)--March 31, 2003 The Bank Hapoalim Bank Hapoalim (Hebrew: בנק הפועלים lit. Bank of the Workers) is the largest Israeli bank. Group'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) financial statements for 2002 showed a decrease in net profit of 62.8% to $75.4 million, compared with $202.7 million in 2001. Net return on equity was 2.7% in 2002 compared to 7.6% in 2001. 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 Bank Hapoalim Group was $2.8 billion, an increase of 0.4% compared with the end of 2001. Net profit per share of NIS Niš or Nish (both: nēsh), city (1991 pop. 175,391), SE Serbia, on the Nišava River. An important railway and industrial center, it has industries that manufacture textiles, electronics, spirits, and locomotives. 1 par value of share capital amounted to $ 0.06 compared with $ 0.16 in 2001. Total consolidated assets of the Bank amounted to $55.4 billion as of December 31, 2002, an increase of 2.6%. Credit to the public increased by 2.2% to $40.5 billion and deposits from the public increased by 3.4% to $44.6 billion. The decrease in net profit in 2002 derived mainly from an increased provision for doubtful debts and the costs of reducing staff through an early retirement program. However, operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. and profit from financing activities increased, while operating and other expenses (exclusive of the early retirement program), provisions for taxes and losses from equity-basis investees decreased. The following developments were recorded in comparison with 2001: -- $419.7 million increase in provision for doubtful debts. -- $101.8 million increase in early retirement program expenditure. -- $21.1 million increase in net loss from extraordinary transactions after taxes. -- $80.9 million increase in profit from financing activities before provision for doubtful debts. -- $15.4 million increase in operating and other income. -- $98.2 million decrease in operating and other expenses (exclusive of the cost of the early retirement program). -- $160.7 million decrease in provision for taxes. -- $ 49.4 million decrease in the Bank's share of net operating losses after taxes of equity-basis investees. Profit from financing activities before provision for doubtful debts in 2002 amounted to $1,360 million, an increase of 6.3% over 2001. The provision for doubtful debts totaled $689.7 million, compared with $270 million in 2001, an increase of 155.4%. Most of the increase in the provision for doubtful debts was a result of the deepening recession in the Israeli economy, the difficult security situation, and the borrowers' repayment ability in various sectors. The specific provision for doubtful debts totaled $695 million in 2002, an increase of 144.6%. Operating and other income totaled $756.4 million, an increase of 2.1%. Operating and other expenses totaled $1,254.8 million compared with $1,251.2 million, an increase of 0.3%. Exclusive of the costs of the early retirement program, operating and other expenses fell by 8.0%. The Bank implemented a strategy aimed at increasing efficiency by reducing the number of employees. The cost of the program was $119.9 million. The program is expected to save $42.2 million in salary expenses. The operational coverage ratio measuring operating income as a percentage of operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. (excluding expenses for the early retirement program) reached 66.7% compared with 60.1% in 2001. In recent years Hapoalim has increased its activity abroad in order to enhance its profitability. This trend has been apparent in all areas of international activity, including raising deposits, developing global private banking, participating in international transactions, floating stock issues abroad, expanding the local activity of branches worldwide, and enhancing ties with correspondent banks Correspondent bank Bank that accepts deposits of, and performs services for, another bank (called a respondent bank); in most cases, the two banks are in different cities. . As part of this strategy, Bank Hapoalim established the Signature Group in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of in 2001. This group includes the Signature Securities Group and Signature Bank subsidiaries. Signature Bank operates via nine branches that provide personalized and professional private banking services to affluent customers in the USA. In addition, at the end of 2001 the Bank established Poalim Asset Management (PAM) in the UK and Ireland, through which it is developing sophisticated new products for global private banking customers via an asset management arm, in cooperation with Frank Russell Frank Russell may refer to the following people:
The Bank's full financial statements for 2002 are available upon request, and can also be accessed on its Internet site www.bankhapoalim.co.il |
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