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REFILE-Israel's Bank Hapoalim Q4 profit slides on U.S. tax probe charge
March 30, 2017 / 5:16 AM / 7 months ago

REFILE-Israel's Bank Hapoalim Q4 profit slides on U.S. tax probe charge

(Restates U.S. provision in dollars as originally reported)

TEL AVIV, March 30 (Reuters) - Bank Hapoalim, Israel’s largest lender, reported lower fourth-quarter net profit due to a provision regarding a U.S. tax investigation as well as sharply higher credit loss charges.

Hapoalim, which issued a profit warning last week, said on Thursday it earned 138 million shekels ($38 million) in the quarter, down from 586 million a year earlier.

Last week, Hapoalim said it would set aside a provision of $68.5 million regarding a U.S. investigation into tax evasion by the bank’s U.S. clients.

Net financing income rose to 2.03 billion shekels from 1.95 billion, while it had credit loss expenses of 469 million shekels compared with expenses of 147 million a year ago.

Hapoalim’s core Tier 1 capital ratio to risk-weighted assets was 11.01 percent, compared with 9.63 percent at the end of 2015.

The bank said it would pay a dividend of 41 million shekels, or 30 percent of net profit, for the quarter.

$1 = 3.6180 shekels Reporting by Tova Cohen; Editing by Steven Scheer

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