Latest news with #BankHapoalim
Yahoo
6 days ago
- Business
- Yahoo
Southern Israel resident convicted of 1 million NIS fraud through phishing
Magistrates' Court Judge Anat Choleta found that the defendant exploited Bank Hapoalim's 'Deposit Envelope' service to commit fraud totalling nearly NIS 1 million. A resident of southern Israel has been convicted of aggravatedfraud and transactions in prohibited property, the Magistrates' Court ruled Wednesday morning. Magistrates' Court Judge Anat Choleta found that the defendant exploited Bank Hapoalim's 'Deposit Envelope' service to commit fraud totalling nearly one million shekels. According to the verdict, the defendant made 14 cash deposits using the bank's envelope service at four different branches. The service allows customers to declare a deposit amount online, place the cash in an envelope, and insert it into a machine at the branch. The declared amount is credited to the customer's account immediately, while the actual cash is counted within 48 hours. The court found that the defendant declared deposits totalling NIS 977,088.30 but actually deposited only NIS 50,129.50—a shortfall exceeding NIS 926,000. Immediately after his account was credited, he transferred a total of NIS 1,005,430 via Zahav transfers to various suppliers. Judge Choleta ruled that a series of circumstantial pieces of evidence formed a clear and incriminating picture. Security footage showed the defendant's son depositing envelopes that were visibly thinner than expected for the declared amounts. The gap between the declared and actual amounts exceeded NIS 900,000, with each envelope supposedly containing tens of thousands of shekels but actually containing only thousands. Three cash counters testified that every envelope contained significant discrepancies after triple counting. 'The testimonies regarding the counting process at the cash centre rule out any possibility of a counting error on the bank's part,' Choleta wrote. The southern district security officer for Bank Hapoalim testified that he reviewed the deposit videos and saw 'the depositor is holding an envelope that is far too thin compared to the declared amount.' He added that depositing envelopes at different branches delayed the detection of the discrepancies. The defendant claimed he placed the correct sums in the envelopes and gave them to his son to deposit, saying he did not know how the shortfall arose. A defense witness demonstrated how an envelope could be cut open and resealed to appear intact. Judge Choleta rejected claims of bank procedure violations or counting errors, concluding that 'the circumstantial evidence leads to one clear and reasonable conclusion: the defendant's guilt.' She noted that the defence 'did not present any real alternative scenario, nor did it provide any evidence or even preliminary evidence to support one.' During cross-examination, the defendant was asked about the thickness of the envelopes seen in the videos. When asked by the judge how thick a bundle of 300 one-hundred-shekel notes would be, he compared it to a pack of cigarettes and admitted the envelopes in the footage were thinner. Company employees testified that the defendant was financially motivated. The company's account had been restricted for several months, preventing payments by cheque or overdraft. Suppliers demanded immediate ZAHAV transfers to continue doing business, supporting the prosecution's case.
Yahoo
20-05-2025
- Business
- Yahoo
Bank Hapoalim BM (BKHYY) Q1 2025 Earnings Call Highlights: Strong Profit Growth Amid ...
Return on Equity: 16.4% for the first quarter. Net Profit: NIS2.4 billion, up 25% versus the corresponding quarter. Earnings Per Share (EPS): NIS1.83. Cost to Income Ratio: 35%. Credit Growth: 2.7% in the last quarter, 10.8% in the last 12 months. Total Income Growth: 3.2% versus the fourth quarter, 11.8% versus last year. CET1 Ratio: 11.74%. NPL Ratio: Dropped to 0.52%. Liquidity Coverage Ratio (LCR): 128%. Financing Income Growth: 2.3% in the quarter. Fees Growth: 6.2% in the last quarter, 9.2% in the last 12 months. Operating and Other Expenses: Dropped by 29.1% compared to the previous quarter. Provision for Credit Losses: NIS262 million or 0.23% of the credit book. Dividend Distribution: NIS720 million cash dividend, NIS0.55 per share, and NIS250 million share buyback. GDP Growth: 3.4% annual rate in the first quarter. Inflation: 3.6%. Warning! GuruFocus has detected 3 Warning Signs with CGEN. Release Date: May 19, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Bank Hapoalim BM (BKHYY) reported a strong return on equity of 16.4% for the first quarter, indicating robust profitability. Net profit increased by 25% compared to the corresponding quarter, showcasing significant financial growth. The bank achieved a cost-to-income ratio of 35%, reflecting efficient cost management. Credit growth was recorded at 2.7% for the last quarter and 10.8% over the last 12 months, driven by demand across various segments. The CET1 capital ratio stood at 11.74%, well above the minimum regulatory requirement, indicating a strong capital position. The bank recorded a special war tax expense, which impacted overall profitability. Provision for credit losses amounted to NIS262 million, reflecting potential impacts from economic and political uncertainties in Israel. The dividend payout ratio is capped at 40% due to ongoing geopolitical uncertainties, limiting shareholder returns. Operating and other expenses were previously high due to a NIS597 million expense for an early retirement plan. The economic environment remains uncertain, with inflation at 3.6% and potential risks from geopolitical tensions affecting future performance. Q: You mentioned the current limitations regarding dividends and buybacks. When might the Bank of Israel lift these restrictions, and what conditions need to change for this to happen? A: The Bank of Israel currently caps the dividend payout ratio at 40% due to geopolitical uncertainties. The lifting of these restrictions depends on a reduction in these uncertainties and improved economic performance. The Bank of Israel evaluates the situation quarterly, so the timeframe for changes is uncertain. Q: Given the current geopolitical situation, do you expect to maintain the same level of loan growth in the coming quarters? A: We achieved a 2.7% growth this quarter, and our guidance suggests an average annual growth of 7% for 2025 and 2026, based on GDP and inflation trends. If the economy performs well, we are prepared to seize opportunities, supported by our strong capital and liquidity positions. Q: Can you provide more details on the factors driving your financing income growth? A: Financing income grew by 2.3% this quarter, driven by credit book growth, asset portfolio repricing, duration extension, and a higher CPI contribution. This growth is sustainable even without the CPI effect. Q: How has the geopolitical environment affected your credit quality metrics? A: Despite the geopolitical challenges, our credit quality has improved, with the NPL ratio dropping to 0.52%. The allowance for credit losses increased to NIS8.1 billion, primarily due to collective allowances reflecting potential economic impacts. Q: What are your expectations for the macroeconomic environment and its impact on your operations? A: The GDP expanded at an annual rate of 3.4% in the first quarter, with inflation at 3.6%. The labor market remains tight, and market expectations suggest potential interest rate cuts by year-end. These factors position us well for continued strong performance. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
19-05-2025
- Business
- Reuters
Too much uncertainty amid Gaza war to allow dividend boost, Israel banking regulator says
TEL AVIV, May 19 (Reuters) - Israel's banking regulator on Monday said it was still too early to give the green light to commercial banks to raise dividend payouts due to ongoing economic uncertainty stemming from the war in Gaza. At the outset of the war triggered by Hamas' October 2023 attack on Israel, the central bank told lenders to hold off on large payouts in order to be able to provide sufficient credit. Banks responded by reducing payouts to 15-20% of quarterly net profit - from as much as 50% prior to the conflict. They have since been allowed to raise that to 40%, with most banks paying out 30% of net profit in the form of dividends and another 10% in share buybacks. With strong capital ratios and profits, banks have lobbied for a rise back to 50% despite public anger that lenders are cashing in on higher interest rates while dragging their feet on raising savings rates. "Between 40 and 50 percent is not really significant," Supervisor of Banks Daniel Hahiashvili told a news conference. "But we still think we are in a period of uncertainty in the economy so banks need to preserve their capital buffers. "What we are conveying to the banks is that the main concern remains risk and the importance of strengthening capital ratios and our discussions with the banks are aimed at clarifying this approach," he said, declining to set a time frame for allowing higher payouts. Bank Hapoalim ( opens new tab earlier said it would distribute 970 million shekels ($274 million) to shareholders in dividends and buybacks, while Israel Discount Bank ( opens new tab will pay out a total of 40% of quarterly net profit, adding that it would raise that to 50% once permitted by the banking regulator. ($1 = 3.5410 shekels)
