Bank Hapoalim announces 2024 net profit of over $2 billion as borrowing costs stay high

Bank Hapoalim, one of Israel’s two largest lenders, earned a net profit of NIS 7.64 billion ($2.12 billion) in 2024 as borrowing costs for mortgage and loan holders remained high, which helped propel income from net interest and fees.

Net profit increased from NIS 7.36 billion in 2023. Net interest income last year jumped 5.4 percent to about NIS 17 billion in 2024 year-on-year. Fee income increased 2.3% to almost NIS 4 billion. Total income in 2024 rose by 2.7% to about NIS 22 billion compared to 2023.

“The main driver of the increase is income growth, coupled with a decline in credit loss provision, partially offset by an increase in expenses, mainly due to an early retirement plan,” Hapoalim says in a statement.

The bank’s profit declined 11.9% to NIS 1.55 billion in the October to December period from the NIS 1.76 billion earned during the same period a year ago due to “a negative contribution of the CPI and an increase in expenses.” Meanwhile, net interest income amounted to NIS 4.18 billion, up from the NIS 3.75 billion recorded during the same quarter in 2023.

Hapoalim says quarterly and annual results were impacted by a NIS 597 million expense for an early retirement plan announced last December.

The bank provides guidance and sees its net profit in the range of NIS 8.5 billion to 9.5 billion in both 2025 and 2026.