Bank Hapoalim announced on Thursday that it will earn NIS 9.802 billion in net profit in 2025, with a 15.9% return on equity, according to its fourth-quarter and annual results statements. The Tel Aviv-based lender reported results for the year and quarter ended December 31, 2025.

The bank reported NIS 2.078b. net profit in the fourth quarter, with a 13.0% return on equity, and said the quarter included a NIS 200m. provision tied to a labor dispute declared in September 2025. The results come amid shifting monetary conditions, after the central bank unexpectedly cut the interest rate in January 2026.

Bank Hapoalim said the fourth quarter was affected by inflation-linked items, pointing to a negative “known CPI” reading that weighed on quarterly income compared to the prior quarter. It added that negotiations over the labor dispute were still ongoing as of the publication date.

For the full year, the bank attributed the profit increase to higher total income while expenses were essentially unchanged when excluding a one-off early retirement plan expense recorded in 2024.

Net credit to the public rose to NIS 502.9b. by the end of 2025, up 13.4% year-on-year, with growth across corporate, commercial and retail segments, the bank said. The bank also reported improved credit quality indicators, including a 0.48% non-performing loan ratio and 310% coverage.

Shareholders’ equity climbed to NIS 64.7b., and the bank reported an 11.98% CET1 capital ratio and a 15.27% total capital ratio at year-end 2025. For background on the lender’s recent trajectory.

For the fourth quarter distribution, Bank Hapoalim said NIS 991m. It would be paid as dividends on March 23, 2026, and NIS 248m. would be allocated to the next stage of its share buyback plan. Total profit distribution for 2025 amounted to NIS 4.9b., the bank said.

Looking ahead, the bank set updated 2026–2027 targets that include NIS 9.0–10.0b. in annual net profit and approximately 14%–15% return on equity, subject to Bank of Israel guidelines.