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Bank Hapoalim BM (BKHYY)
OTHER OTC:BKHYY
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Bank Hapoalim BM
(OTC:BKHYY)
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Rating:78Outperform
Price Target:
$121.00
â–²(1.50% Upside)
Bank Hapoalim BM demonstrates strong financial performance and technical indicators, supported by a positive earnings call. The stock's valuation is reasonable, and the overall outlook is positive, despite some regulatory and economic uncertainties.
Positive Factors
Revenue Growth
Consistent revenue growth indicates strong demand for the bank's services and effective market penetration, supporting long-term financial health.
Innovative Product Offering
The Bit app's success demonstrates Bank Hapoalim's ability to innovate and engage customers, enhancing its competitive position in digital banking.
Strong Balance Sheet
A strong balance sheet with minimal debt enhances financial stability and provides flexibility for future growth opportunities.
Negative Factors
Regulatory Uncertainties
Regulatory uncertainties can impact profitability and operational strategies, posing a risk to long-term financial performance.
Decline in Retail Deposits
A decline in retail deposits may indicate reduced customer confidence or competitive pressures, potentially affecting liquidity and funding costs.
Economic Uncertainty
Persistent economic uncertainty can lead to increased credit risk and provisioning, impacting profitability and financial stability.
Bank Hapoalim BM (BKHYY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$28.11B
Dividend Yield2.72%
Average Volume (3M)112.00
Price to Earnings (P/E)10.8
Beta (1Y)0.22
Revenue Growth25.15%
EPS Growth25.32%
CountryUS
Employees8,480
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)3.07
Shares Outstanding263,236,630
10 Day Avg. Volume0
30 Day Avg. Volume112
Financial Highlights & Ratios
PEG Ratio1.80
Price to Book (P/B)0.95
Price to Sales (P/S)2.59
P/FCF Ratio6.23
Enterprise Value/Market Cap0.70
Enterprise Value/Revenue0.47
Enterprise Value/Gross Profit0.85
Enterprise Value/Ebitda1.43
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Bank Hapoalim BM Business Overview & Revenue Model
Company DescriptionBank Hapoalim B.M., together with its subsidiaries, provides various banking and financial products and services in Israel and internationally. It operates through Corporate Banking, Retail Banking, and Financial Markets and International Banking divisions. The company offers account-management services, credit for various purposes, deposits, and savings plans, and capital-market service; securities, and currencies and derivatives trading services; securities custody services; research, consulting, and advisory services; pension advisory and retirement planning services; and housing loans. It also provides credit for routine operations and investment financing, guarantees, letters of credit, foreign trade, and transactions in financial and derivative instruments, as well as investment services in various channels, such as foreign currency, shekels, securities, etc. In addition, the company offers financing for infrastructure projects, foreign trade and international trade financing, and project financing services; foreign trade transactions and transactions in financial derivatives; financing of working capital; syndication; credit-risk sales; financing of construction projects; dealing-room services; federal deposit insurance; and credit cards services. Further, it provides clearing of payment, asset management, investment portfolio management, investment banking, underwriting, and issuance management services. The company serves households, private-banking customers, foreign residents, small businesses, financial-asset managers, middle-market business clients, and large corporations through 175 branches, 601 external and 131 internal automatic teller machines, 126 external and 216 internal check-deposit machines, 30 information stations, 316 self-service stations, and 119 night safes. Bank Hapoalim B.M. was founded in 1921 and is based in Tel Aviv, Israel.
How the Company Makes MoneyBank Hapoalim generates revenue primarily through interest income from loans and credit facilities extended to customers, which constitutes a significant portion of its earnings. The bank also earns income from fees and commissions related to its banking services, including account management, transaction processing, and wealth management services. Additionally, investment income from its trading and investment portfolios contributes to its revenue. The bank has established strategic partnerships with various financial service providers, enhancing its product offerings and customer reach, which further supports its revenue generation. Economic conditions, regulatory changes, and interest rate fluctuations are significant factors influencing the bank's overall financial performance.
Bank Hapoalim BM Earnings Call Summary
Earnings Call Date:Nov 19, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 05, 2026
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance with record net profit, significant credit growth, and effective cost management. However, there were some concerns related to regulatory risks, a decrease in retail deposits, and economic uncertainties. Overall, the positive aspects of growth and profitability seem to outweigh the challenges.Q3-2025 Updates
Positive Updates
Record Net Profit and Return on Equity
The bank reported a 16.1% return on equity for the first 9 months and a net profit of ILS 7.3 billion, excluding ILS 380 million from insurance reimbursement.
Strong Credit Growth
The bank achieved an 8.1% credit growth year-to-date and an 11.4% increase in the credit portfolio over the last 12 months.
Impressive Cost Management
Operating and other expenses are lower versus all comparable periods, with a cost/income ratio of 30.6% for the quarter.
Positive Macroeconomic Environment
GDP grew at an annualized rate of 12.4% in the third quarter, and inflation decreased to a year-on-year rate of 2.5%.
Innovative Product Offering with Bit
The number of active Bit customers reached 3.45 million, and a new saving pockets feature allows customers to benefit from 4% interest.
Negative Updates
Decrease in Non-Regular Financing Income
Non-regular financing activities saw a decrease due to customer benefits granted in line with the Bank of Israel voluntary program.
Decline in Retail Deposits
Retail deposits decreased over the last year, though they still represent 54% of total deposits.
Regulatory Uncertainties
Potential regulatory risks include increasing tax rates on banks and a possible tax for mortgage subsidization.
Persistent Economic Uncertainty
Despite a ceasefire, uncertainty remains in the economic environment, affecting provisions for credit losses.
Company Guidance
In the Bank Hapoalim Third Quarter of 2025 Results Conference Call, CFO Ram Gev highlighted a robust financial performance with a 16.1% return on equity over nine months and a net profit of ILS 7.3 billion, excluding ILS 380 million from insurance reimbursement. The bank reported an 8.1% credit growth year-to-date, a CET1 capital ratio of 12.05%, and an LCR of 124%. The NPL ratio declined to 0.49%, and the financial margin increased to 2.77%. The cost/income ratio stood at 30.6% for the quarter. The bank maintained a 50% profit distribution strategy, with 40% as dividends and 10% for share buybacks. The innovative Bit app reached 3.45 million active users, contributing to a strong customer engagement. Gev emphasized the bank's disciplined cost management and prudent approach in building buffers amid economic uncertainty.Bank Hapoalim BM Financial Statement Overview
Summary
Bank Hapoalim BM exhibits strong financial health, characterized by consistent revenue growth and a solid balance sheet with minimal debt. The improvement in cash flows in 2024 bodes well for future operations, although some fluctuations in cash management are observed. The absence of EBIT and EBITDA data for 2024 limits comprehensive profitability insights but does not overshadow the bank's overall positive financial trajectory.Income Statement
Bank Hapoalim BM has shown consistent revenue growth over the years, with a notable increase in total revenue from 2020 to 2024. The gross profit margin is strong given that gross profit equals total revenue, but the absence of EBIT and EBITDA figures for 2024 limits margin analysis. The net profit margin remains stable, indicating efficient cost management. However, the lack of EBIT and EBITDA data for the latest period constrains a full profitability analysis.75
Positive
Balance Sheet
The bank maintains a robust equity position with a rising stockholders' equity over the years. The debt-to-equity ratio is favorable, reflecting minimal reliance on debt financing. The equity ratio suggests a strong capital base, enhancing financial stability. The consistent growth in total assets further supports the balance sheet's strength.80
Positive
Cash Flow
Operating cash flow has improved significantly in 2024 after a dip in 2023, showcasing better cash generation capabilities. Free cash flow also turned positive in 2024, indicating improved financial flexibility. However, the variability in investing and financing cash flows suggests some volatility in cash management strategies.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 41.98B | 40.48B | 38.20B | 23.63B | 16.22B | 14.58B |
| Gross Profit | 23.25B | 21.93B | 21.31B | 17.87B | 14.30B | 13.12B |
| EBITDA | 13.74B | 13.02B | 12.07B | 10.70B | 8.41B | 4.33B |
| Net Income | 8.43B | 7.63B | 7.36B | 6.53B | 4.91B | 2.06B |
Balance Sheet | ||||||
| Total Assets | 758.09B | 720.84B | 686.53B | 665.35B | 638.78B | 539.60B |
| Cash, Cash Equivalents and Short-Term Investments | 80.57B | 117.05B | 107.73B | 133.42B | 189.28B | 138.71B |
| Total Debt | 26.64B | 20.75B | 22.36B | 27.47B | 26.27B | 24.28B |
| Total Liabilities | 695.96B | 662.69B | 634.10B | 618.85B | 596.03B | 499.70B |
| Stockholders Equity | 62.12B | 58.15B | 52.43B | 46.50B | 42.73B | 39.87B |
Cash Flow | ||||||
| Free Cash Flow | 7.79B | 8.85B | -1.41B | -568.00M | 4.29B | 2.12B |
| Operating Cash Flow | 8.76B | 9.83B | -437.00M | 132.00M | 5.18B | 2.80B |
| Investing Cash Flow | -68.23B | -27.01B | -27.15B | -67.97B | -45.87B | -23.21B |
| Financing Cash Flow | 33.27B | 26.47B | 1.96B | 10.55B | 91.97B | 73.86B |
Bank Hapoalim BM Technical Analysis
Positive
119.21
Price Trends
103.06
Positive
98.15
Positive
87.40
Positive
Market Momentum
3.79
Negative
78.41
Negative
99.42
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BKHYY, the sentiment is Positive. The current price of 119.21 is above the 20-day moving average (MA) of 108.74, above the 50-day MA of 103.06, and above the 200-day MA of 87.40, indicating a bullish trend. The MACD of 3.79 indicates Negative momentum. The RSI at 78.41 is Negative, neither overbought nor oversold. The STOCH value of 99.42 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BKHYY.
Bank Hapoalim BM Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $28.11B | 10.84 | 15.13% | 2.72% | 25.15% | 25.32% | |
73 Outperform | $21.97B | 12.39 | 18.12% | 5.03% | 8.72% | 27.70% | |
73 Outperform | $24.24B | 11.65 | 10.38% | 0.39% | -3.18% | -3.10% | |
72 Outperform | $32.38B | 9.37 | 11.78% | 2.44% | 5.89% | 34.68% | |
70 Outperform | $31.25B | 8.01 | 9.99% | 2.80% | -4.64% | 24.98% | |
70 Outperform | $25.30B | 7.93 | 8.58% | 2.83% | -4.88% | 4.84% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
BKHYY
Bank Hapoalim BM
119.21
61.57
106.82%
BBD
Banco Bradesco SA
3.41
1.52
80.42%
BAP
Credicorp
281.61
101.92
56.72%
FCNCA
First Citizens BancShares
2,082.09
3.72
0.18%
KB
Kb Financial Group
85.33
25.93
43.65%
SHG
Shinhan Financial Group Co
53.06
18.13
51.90%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.