Bank Hapoalim BM (BKHYY)
OTHER OTC:BKHYY
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Bank Hapoalim BM
(OTC:BKHYY)
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Rating:70Outperform
Price Target:
$139.00
â–²(17.38% Upside)
Action:ReiteratedDate:03/07/26
The score is driven primarily by solid underlying profitability and a constructive, guidance-up earnings outlook, supported by an attractive valuation. Offsetting these positives are the recent revenue decline, meaningfully higher leverage, and only mixed near-term technical signals.
Positive Factors
Strong Profitability & ROE
Sustained high profitability and ROE signal the bank’s ability to generate internal capital across business cycles. Robust net income supports dividend capacity, organic capital build, and reinvestment for growth while providing a buffer against credit or macro shocks over the medium term.
Negative Factors
Sharply Higher Leverage
A near tripling of leverage reduces financial flexibility and raises solvency sensitivity to shocks. Higher debt burdens constrain capital management options, increase funding risk and elevate the bank’s exposure to rate or liquidity stress during economic downturns.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Profitability & ROE
Sustained high profitability and ROE signal the bank’s ability to generate internal capital across business cycles. Robust net income supports dividend capacity, organic capital build, and reinvestment for growth while providing a buffer against credit or macro shocks over the medium term.
Read all positive factors
Bank Hapoalim BM (BKHYY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$32.55B
Dividend Yield2.71%
Average Volume (3M)112.00
Price to Earnings (P/E)11.0
Beta (1Y)0.17
Revenue Growth25.15%
EPS Growth25.32%
CountryUS
Employees8,480
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)2.56
Shares Outstanding262,176,700
10 Day Avg. Volume0
30 Day Avg. Volume112
Financial Highlights & Ratios
PEG Ratio0.56
Price to Book (P/B)1.53
Price to Sales (P/S)2.50
P/FCF Ratio6.14
Enterprise Value/Market Cap3.09
Enterprise Value/Revenue2.55
Enterprise Value/Gross Profit4.76
Enterprise Value/Ebitda6.69
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)11.71
Revenue Forecast (FY)$7.63B
Bank Hapoalim BM Business Overview & Revenue Model
Company Description
Bank 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 ...
How the Company Makes Money
Bank 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 ...
Bank Hapoalim BM Earnings Call Summary
Earnings Call Date:Mar 05, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 25, 2026
Earnings Call Sentiment Positive
The call presented a strongly positive performance for 2025: robust profitability (ILS 9.8bn), high ROE (15.9%), broad-based loan growth (+13.4%), low NPLs (0.48%) and strong capital allowing meaningful shareholder distribution. Management emphasized digital and AI progress (Bit and Danit), efficiency programs and higher 2026–27 targets, and flagged a material one-off pipeline (real estate gains of ILS 800–900m from 2027). Key risks discussed were temporary Q4 one-offs (labor provision and CPI-driven volatility), elevated collective provisions (conservative reserves), ongoing technology costs, and geopolitical uncertainty that could slow activity if prolonged. On balance, the positives — notably profitability, asset quality, capital strength and clear strategic momentum — substantially outweigh the noted challenges.Positive Updates
Strong Profitability and ROE
Net profit of ILS 9.8 billion for 2025 (ILS 9.4 billion adjusted for ILS 380m insurance reimbursement); return on equity of 15.9% for the year (15.3% adjusted); EPS ILS 7.43 — both metrics comfortably above prior targets.
Negative Updates
Q4 One-Offs and CPI Volatility Impact
Quarterly profitability affected by negative CPI dynamics and a one-time ILS 200 million provision related to a labor dispute; CPI volatility produced over ILS 650 million gap in financing income between Q3 and Q4, contributing to reported Q4 ROE of 13% (below annual level).
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Profitability and ROE
Net profit of ILS 9.8 billion for 2025 (ILS 9.4 billion adjusted for ILS 380m insurance reimbursement); return on equity of 15.9% for the year (15.3% adjusted); EPS ILS 7.43 — both metrics comfortably above prior targets.
Read all positive updates
Company Guidance
The bank updated its 2026–27 guidance to target net profit of ILS 9.0–10.0 billion, return on equity of 14–15%, accelerated loan growth of 8–9% and a higher payout ratio of 50–60%; management also expects to recognize pretax real‑estate gains of ILS 800–900 million starting in 2027. These targets build on strong 2025 results (net profit ILS 9.8bn, ILS 9.4bn excl. ILS 380m insurance income; ROE 15.9% / 15.3% excl.; EPS ILS 7.43; credit growth 13.4%; deposits +3.2% y/y) and rest on a solid balance sheet (CET1 11.98%), high efficiency (cost/income below 35%, adjusted mid–low 30s), strong asset quality (NPLs 0.48%, allowance to loans 1.72%, NPL coverage ~310%), provisions of ILS 421m (0.31% of the book) in 2025, a 2025 cash dividend of ILS 4.1bn (ILS 0.79/share) and total distribution ILS 4.9bn (50% payout), and a reported sensitivity to a 1% interest‑rate move of roughly ILS 800m.Bank Hapoalim BM Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
60
Neutral
Cash Flow
55
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 39.50B | 40.48B | 38.20B | 23.63B | 16.22B |
| Gross Profit | 21.15B | 21.93B | 21.31B | 17.87B | 14.30B |
| EBITDA | 14.30B | 13.02B | 12.07B | 10.70B | 8.41B |
| Net Income | 9.01B | 7.63B | 7.36B | 6.53B | 4.91B |
Balance Sheet | |||||
| Total Assets | 762.84B | 720.84B | 686.53B | 665.35B | 638.78B |
| Cash, Cash Equivalents and Short-Term Investments | 94.75B | 117.05B | 107.73B | 133.42B | 189.28B |
| Total Debt | 63.91B | 20.75B | 22.36B | 27.47B | 26.27B |
| Total Liabilities | 698.49B | 662.69B | 634.10B | 618.85B | 596.03B |
| Stockholders Equity | 64.35B | 58.15B | 52.43B | 46.50B | 42.73B |
Cash Flow | |||||
| Free Cash Flow | 16.09B | 8.85B | -1.41B | -568.00M | 4.29B |
| Operating Cash Flow | 17.07B | 9.83B | -437.00M | 132.00M | 5.18B |
| Investing Cash Flow | -82.85B | -27.01B | -27.15B | -67.97B | -45.87B |
| Financing Cash Flow | 26.17B | 26.47B | 1.96B | 10.55B | 91.97B |
Bank Hapoalim BM Technical Analysis
Positive
118.42
Price Trends
125.44
Negative
119.91
Positive
107.10
Positive
Market Momentum
-1.39
Negative
53.36
Neutral
94.03
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 118.42 is below the 20-day moving average (MA) of 121.53, below the 50-day MA of 125.44, and above the 200-day MA of 107.10, indicating a neutral trend. The MACD of -1.39 indicates Negative momentum. The RSI at 53.36 is Neutral, neither overbought nor oversold. The STOCH value of 94.03 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $28.02B | 11.79 | 19.28% | 4.82% | 8.72% | 27.70% | |
70 Outperform | $32.55B | 10.95 | 15.64% | 2.71% | 25.15% | 25.32% | |
69 Neutral | $37.49B | 8.02 | 9.81% | 2.79% | -4.64% | 24.98% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | $30.27B | 18.46 | 8.70% | 2.86% | -4.88% | 4.84% | |
64 Neutral | $38.85B | 7.99 | 13.55% | 2.48% | 5.89% | 34.68% | |
61 Neutral | $23.09B | 12.03 | 9.94% | 0.37% | -3.18% | -3.10% |
* Financial Sector Average
BKHYY
Bank Hapoalim BM
124.15
61.89
99.40%
BBD
Banco Bradesco SA
3.90
1.86
90.71%
BAP
Credicorp
352.25
183.57
108.83%
FCNCA
First Citizens BancShares
1,956.63
227.57
13.16%
KB
Kb Financial Group
106.97
55.31
107.07%
SHG
Shinhan Financial Group Co
66.41
34.99
111.36%
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.