In the third quarter of 2023, Bank Hapoalim reported a decrease in profits of $1.67 billion, which is a 6.5% reduction from the same period in 2022. The decline in profits can be attributed to the war, as the bank had to increase its provision for doubtful debts from NIS 45 million to NIS 662 million, following a request from the Bank of Israel. The payment of dividends was also reduced from 40% to 20% of profits, resulting in a payout of 334 million shekels.
The bank also published an assessment of the benefits provided to customers in connection with the war. If all these incentives are implemented, they will cost the bank 420 million shekels. This has resulted in changes in financial decisions, including adjustments to dividend payments and an increase in provisions for doubtful debts.
In conclusion, Bank Hapoalim attributes its decrease in profits to the war and these adjustments made strategic financial decisions that will be reflected on their earnings report for third-quarter 2023.