JERUSALEM: Hapoalim, one of Israel's two largest banks, reported higher quarterly profit on Thursday, boosted by a jump in financing income and lower provisions to protect against loan defaults.

The lender reported a third-quarter profit of 2.76 billion shekels ($849 million), up from 1.91 billion a year earlier. Return on equity rose to 17.6% from 13.6%.

Net interest income grew to 4.83 billion shekels from 4.58 billion, while its provision to protect against bad debts was 347 million shekels, from 406 million shekels in the third quarter last year.

Hapoalim said it would distribute 50% of net profit to shareholders - 1.1 billion shekels in the form of a dividend and 276 million in the first tranche of a new share buyback programme.

The bank's Tier 1 capital ratio rose to 12.05% at the end of September, from 11.90% a year earlier.

Hapoalim shares dipped 0.8% in Tel Aviv on Thursday, but have gained 59% so far in 2025.

 

($1 = 3.2508 shekels) (Reporting by Steven Scheer; Editing by Alexander Smith )