Bank Hapoalim Shows Record Breaking Profits.Business Editors TEL TEL Telephone TEL Telegram TEL Telugu (langauge) TEL Terrorist Exclusion List TEL Technology-Enhanced Learning TEL Transporter-Erector-Launcher TEL Tetra-Ethyl Lead TEL Team Deutsche Telekom AVIV--(BUSINESS WIRE)--March 22, 2001 Net Profit Rose 15.1% to $403.1 Million Bank Hapoalim (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.) surpassed its own record breaking profits of last year with an increase in net profits of 15.1% in 2000, reaching $403.1 million, as compared with $350.2 million in 1999. Net return on equity was 15.1% in 2000 compared to 13.6% in 1999. 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 $3.0 billion, an increase of 9.8% compared with the end of 1999. The increase derived mainly from the net profit for 2000 exclusive of a $149.0 million dividend that was paid. Total consolidated assets of the Bank amounted to $55.2 billion as of December 31, 2000, an increase of 8.2%. Credit to the public increased by 14.2% to $38.3 billion and deposits from the public increased by 11.0% to $43.8 billion. 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 for 2000 amounted to $0.32 compared with $0.28 in 1999. Bank Hapoalim's increased profitability was due to a $152.9 million increase in profit from financing activity before the provision for doubtful debts, a decrease of $11.9 million in the provision for doubtful debts, as well as a $106.7 million increase in operating and other income. Offsetting this increase in profitability was a $175.0 million rise in operating and other expenses, a $21.8 million decrease in the Bank's share of the net operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. of equity-basis investees and a $10.6 million net loss from extraordinary transactions after taxes, compared with a profit of $5.7 million in 1999. As of the first quarter of 2000, the consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge have included the financial results of Bank Otsar Ha-Hayal Bank Otsar Ha-Hayal (unofficially spelled Otsar HaHayal) is an Israeli bank. The name literally means Treasury of the Soldier Bank. Otsar HaHayal was founded in 1946 in the British Mandate of Palestine as a means for Jewish war veterans to store their assets. Ltd. Profit from financing activities before provision for doubtful debts in 2000 amounted to $1,323.4 million, an increase of 13.1% over 1999, when it totaled $1,170.5 million (8.2% excluding Bank Otsar Ha-Hayal). The provision for doubtful debts totaled $171.7 million in 2000 compared with $183.6 million in 1999, a decrease of 6.5%. Operating and other income totaled $858.7 million in 2000 compared with $752.0 million in 1999, an increase of 14.2% (9.5% excluding Otsar Ha-Hayal). Income from capital market activity rose by 32.4% in 2000. The increase derived from a growth in commission income from securities transactions and from a growth in income from provident and mutual fund management fees. The growth resulted from an increase in the volume of activity and the buoyant level of activity on the Tel Aviv Stock Exchange Tel Aviv Stock Exchange Israel's only stock exchange. , principally in the first quarter of the year. Operating and other expenses totaled $1,295.5 million in 2000 compared with $1,120.5 million in 1999, an increase of 15.6% (8.3% excluding Bank Otsar Ha-Hayal). The operational coverage ratio measuring 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. 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. reached 66.3% in 2000 (67.9% excluding Bank Otsar Ha-Hayal) compared with 67.1% in 1999. This is the highest among the five largest banking groups in Israel (based on data for the first three-quarters of 2000.) The ratio of capital to risk assets on December 31, 2000 reached 9.19% compared with 9.06% at the end of 1999. The ratio of core (Tier 1) capital to the elements of risk was 6.94% and the ratio of supplementary (Tier 2) capital was 2.25%. The Bank maintained its status in 2000 as the largest member of the Tel Aviv Stock Exchange in terms of the volume of transactions conducted on and off the exchange. The Bank's customer portfolio of securities had an increase of 19.4% in real terms over the end of 1999. Assets of the mutual funds managed by the Bank's holding company amounted to $3.9 billion on December 31, 2000, compared with $2.7 billion at the end of 1999, an increase of 39.4%. The Bank Hapoalim Group's share in the mutual fund market increased to 33.8% as compared to 31.1% at the end of 1999, making the Group the market leader in mutual funds. Assets of the provident funds managed by the Bank amounted to $16.5 billion as of December 31, 2000, compared with $15.6 billion at the end of 1999, an increase of 5.4%. The growth in the funds' assets resulted from the funds' earnings on their investments and from a positive accrual by their members. The Bank's full financial statements for 2000 are available upon request, and can also be accessed on its internet site www.bankhapoalim.co.il. |
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