Separates NIS 450 million in credit losses

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Expect: The Corona Shadow Economy

(Photo: Silk Ben Ami)

Bank Hapoalim, managed by Dov Kotler, is the first bank to begin quantifying the Corona crisis losses, at least for this stage. The bank, which released its financial statements for 2019 which included a provision of NIS 1 billion for the tax evasion case for American customers and the corruption case in FIFA, ended the year with a net profit of NIS 1.8 billion.

However, this profit already includes another provision for credit losses due to the crisis, the effect of which is on NIS 450 million, with the main addition being “for a number of borrowers related to sectors that have so far been significantly affected by the crisis or its derivatives in the various markets (mainly energy, aviation and tourism). ) “. The bank does not remove any of the borrowers, but it is estimated, among other things, that it is a fuel group of Isaac Tshuva and the Fattal hotel chain.

Workers further report that “these events could cause a material deterioration in Israeli economic activity to which the Bank’s operations are exposed and sustainability and expected consequences for the Bank’s business, including for an increase in credit risk and liquidity difficulties for borrowers and for the slowdown in economic activity.

Bank Hapoalim ATMBank Hapoalim ATM

Bank Hapoalim ATM

(Photo: shuttertstock)

“Also, short-term interest rate cuts by central banks, those occurring and further reductions that may be made, have an effect on the bank’s short-term financing income and interest rates. The extent of these implications depends, among other things, on the extent of the virus spread, the response of governments and markets, and the impact of governments and markets. And therefore their future impact cannot be estimated and quantified. “

Bank Hapoalim CEO, Dov Kotler Bank Hapoalim CEO, Dov Kotler

Bank Hapoalim CEO, Dov Kotler

(Photo: Gadi Dagon)

The workers added that “all of these effects and their extent cannot be estimated at this time, due to uncertainty about the duration of the virus’s spread, measures to be taken, their intensity and uncertainty about the effects of economic activity, capital market trends and various financial measures taken by Governments and regulators on the issue. ”

“The Bank is taking steps to deal with the consequences of the Corona virus, heed regulatory regulations on the matter, and has been on several levels, including continuing to provide services to its clients in other branches and channels and maintaining business continuity in various scenarios. In order to maintain its employees’ safety, the Bank’s work schedule has been reduced in accordance with regulatory regulations. “.



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