Bank Hapoalim, Israel’s leading financial services group, offers diverse services ranging from basic banking to complex financing of large scale projects. During its over 90 years of existence, the Bank has developed a branch network and extensive commercial activity in all areas of banking. With about 13,000 employees, the Bank Group is the leader in the Israeli banking industry in terms of corporate lending, retail and internet banking and credit card activities.
The Group also operates abroad via branches, representative offices and subsidiaries, as well as through relationships with over 2,400 correspondent banks worldwide.
The Bank published its financial statements for 2013 on March 20, 2014.
The net profit of the Bank Group reached 2,580 NIS million, compared with NIS 2,543 million in 2012.
Net return on equity reached 9.3%, compared with 10.1% in 2012.
The Bank’s total capital adequacy ratio continued its trend of improvement and reached 15.6% at the end of 2013, compared with 15.7% at the end of 2012.
For long term foreign currency activity, international rating agencies have positioned the Bank as follows: Moody’s: A2, Standard & Poor’s: BBB+, Fitch: A-. In Israel, S&P Maalot, Israel Securities Rating Company Ltd., issued an AA+ rating, and Midroog (a subsidiary of Moody’s) issued an Aaa rating.
Operations of the Bank Group in Israel
The Bank operates in all areas of banking. The Bank’s activities with the majority of its customers are handled mainly by two areas: the Corporate Area and the Retail Area. The Corporate Area provides service to most business customers; activities with large corporate clients are conducted through specialized sectors operating within its Head Office, while middle market clients are handled in coordination through seven Business Centers and 22 Business branches located throughout Israel. The Retail Area, through a network of over 270 branches, provides the full range of banking services to customers, including households, private banking clients, and small businesses, and also coordinates consumer credit and mortgage activities.
The Bank Group’s operations in Israel are also conducted through subsidiaries, mainly in the following areas:
• Credit Card Companies – The “Isracard Group” - issues (together with the Bank), operates and markets credit cards within and outside the Bank Group, for use in Israel and abroad.
• An investment portfolio management company, Peilim – Portfolio Management Company Ltd., operates within the Bank Group, managing investment portfolios for institutions and individuals.
• A group of companies, “Poalim Capital Markets,” operates within the Bank Group, providing a broad range of investment banking services, such as participation in private investment funds, including venture capital funds, and investments in capital funds and in knowledge and technology intensive companies.
• Poalim Trust Services Ltd. – Provides trust services.
Operations of the Bank Group Abroad
The Group operates abroad via banking subsidiaries, financial companies, the Bank’s overseas branches and representative offices. The main focus of the Bank’s international strategy is the development and expansion of its Global Private Banking activity and of its commercial banking (middle market) business in New York. The Bank maintains ties with correspondent banks worldwide, through which it conducts international activities. These activities include foreign currency trading through dealing rooms, cooperation in foreign trade and financing of international trade transactions, project finance, clearing arrangements and capital markets services.
Global Private Banking – The Bank provides its customers abroad with advanced professional services and products, including investment products and global asset management. This activity currently encompasses Israel, Europe, Latin America, Canada and Hong Kong through banking subsidiaries, branches, representative offices, and asset-management subsidiaries.
Commercial Banking: Most of the Bank Group’s international business activity is conducted through the New York branch: Comprehensive banking services to large Israeli companies operating in the US as well as to local companies and clients, including credit, foreign trade, investments, and dealing-room services; as well as participating in syndicated credit lines organized by leading banks.
The branch is also developing its activity in the middle-market segment in the United States, by developing relationships with and granting direct credit to local commercial clients, with a clear business focus on specific geographical regions and areas of activity.
Activity in the commercial sector in the emerging markets is executed through Bank Pozitif in Turkey and Bank Pozitiv in Kazakhstan.
Poalim Asset Management (PAM) companies operating out of the U.K. are responsible for selecting, marketing, and providing professional support for investment products offered to Global Private Banking customers worldwide, in cooperation with leading international financial companies in these fields.
Subsidiaries abroad are part of the Bank’s international operations alongside those carried out via the Bank’s branches abroad. Banking subsidiaries abroad include: Bank Hapoalim (Switzerland) Ltd., Bank Hapoalim (Luxembourg) S.A., Bank Hapoalim (Cayman) Ltd., Bank Hapoalim (Latin America) S.A., Bank Pozitif Kredi Ve Kalkinma Bankasi Anonim Sirketi, and its subsidiary JSC Bank Pozitiv in Kazakhstan. Another subsidiary, Hapoalim Securities U.S.A. Inc., a company registered in the United States, operates in the area of securities trading for Bank customers in Israel and abroad.
Poalim in the Community
The Bank’s report on Sustainability and Corporate Responsibility was rated by the Global Reporting Initiative (GRI) at the highest grade of A+.
In line with its corporate vision, strategy and values, the Bank Hapoalim Group is committed to taking a leading and active role in the community alongside its business leadership and economic entrepreneurship. This activity for the benefit of the community is centered within the “Poalim in the Community” framework.
Part of this activity is also directed via the “Poalim in the Community” foundation. This commitment is reflected in numerous projects: “Poalim Volunteers” – employee volunteer projects; the “Read and Succeed” project; sponsorship of social welfare activities; donations of computers and equipment; the “Poalim for Culture and Nature in Israel”; support for cultural activity and the arts; the “From Three to Five” project; and “Matan – Your Way of Giving.” The monetary value of these and other contributions to the community amounted to approximately 46 NIS million in 2013.