Bank Hapoalim BM (BKHYY)
OTHER OTC:BKHYY
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Bank Hapoalim BM
(OTC:BKHYY)
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Rating:65Neutral
Price Target:
$138.00
â–²(16.53% Upside)
Action:Downgraded
Date:05/17/26
The score is driven most by solid but weakening underlying fundamentals (notably the sharp TTM revenue decline, higher leverage, and less consistent cash flows) offset by a strong and confident earnings-call outlook with higher medium-term targets and strong asset quality/capital. Technicals are currently soft-to-neutral, while valuation is reasonable with a supportive dividend yield.
Positive Factors
Strong asset quality and capital
Low NPLs (0.48%), high NPL coverage (~310%) and CET1 of 11.98% provide a durable credit-loss cushion. This capital and reserve strength supports lending through stress, underpins shareholder distributions and reduces near-term solvency risk over the next 2–6 months.
Negative Factors
Sharp TTM revenue contraction
A near-term ~40% drop in trailing revenue is a material headwind to sustainable earnings. Even with solid margins, such a top-line contraction signals client or activity weakness and raises execution risk for meeting medium-term profit targets without clear revenue recovery.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong asset quality and capital
Low NPLs (0.48%), high NPL coverage (~310%) and CET1 of 11.98% provide a durable credit-loss cushion. This capital and reserve strength supports lending through stress, underpins shareholder distributions and reduces near-term solvency risk over the next 2–6 months.
Read all positive factors
Bank Hapoalim BM (BKHYY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$31.21B
Dividend Yield2.71%
Average Volume (3M)112.00
Price to Earnings (P/E)9.8
Beta (1Y)0.32
Revenue Growth32.55%
EPS Growth30.10%
CountryUS
Employees8,480
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)35.30
Shares Outstanding261,912,960
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 Cap2.89
Enterprise Value/Revenue2.29
Enterprise Value/Gross Profit4.30
Enterprise Value/Ebitda5.98
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)12.1
Revenue Forecast (FY)$8.11B
Bank Hapoalim BM Business Overview & Revenue Model
Company Description
Bank Hapoalim B.M., an Israeli financial institution established in Tel Aviv in 1921, delivers a wide array of banking and financial services to clients across Israel and internationally. The company organizes its extensive operations into three p...
How the Company Makes Money
Bank Hapoalim primarily earns revenue through banking intermediation and fee-based financial services. Its core earnings typically come from (1) net interest income: interest collected on loans and other interest-earning assets (including consumer...
Bank Hapoalim BM Earnings Call Summary
Earnings Call Date:Mar 05, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 17, 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
67
Positive
Balance Sheet
61
Positive
Cash Flow
52
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 39.34B | 39.50B | 40.48B | 38.20B | 23.63B | 16.22B |
| Gross Profit | 20.97B | 21.15B | 21.93B | 21.31B | 17.87B | 14.30B |
| EBITDA | 15.07B | 14.30B | 13.02B | 12.07B | 10.70B | 8.41B |
| Net Income | 8.72B | 9.01B | 7.63B | 7.36B | 6.53B | 4.91B |
Balance Sheet | ||||||
| Total Assets | 789.62B | 762.84B | 720.84B | 686.53B | 665.35B | 638.78B |
| Cash, Cash Equivalents and Short-Term Investments | 80.72B | 94.75B | 117.05B | 107.73B | 133.42B | 189.28B |
| Total Debt | 75.92B | 63.91B | 20.75B | 22.36B | 27.47B | 26.27B |
| Total Liabilities | 724.70B | 698.49B | 662.69B | 634.10B | 618.85B | 596.03B |
| Stockholders Equity | 64.92B | 64.35B | 58.15B | 52.43B | 46.50B | 42.73B |
Cash Flow | ||||||
| Free Cash Flow | 6.19B | 16.09B | 8.85B | -1.41B | -568.00M | 4.29B |
| Operating Cash Flow | 7.20B | 17.07B | 9.83B | -437.00M | 132.00M | 5.18B |
| Investing Cash Flow | -62.36B | -82.85B | -27.01B | -27.15B | -67.97B | -45.87B |
| Financing Cash Flow | 47.87B | 26.17B | 26.47B | 1.96B | 10.55B | 91.97B |
Bank Hapoalim BM Technical Analysis
Negative
118.42
Price Trends
129.32
Negative
127.39
Negative
114.95
Positive
Market Momentum
-3.46
Positive
34.32
Neutral
5.88
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BKHYY, the sentiment is Negative. The current price of 118.42 is below the 20-day moving average (MA) of 128.54, below the 50-day MA of 129.32, and above the 200-day MA of 114.95, indicating a neutral trend. The MACD of -3.46 indicates Positive momentum. The RSI at 34.32 is Neutral, neither overbought nor oversold. The STOCH value of 5.88 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $25.44B | 12.22 | 19.66% | 4.82% | 22.61% | 34.04% | |
69 Neutral | $35.50B | 9.49 | 10.54% | 2.79% | 1.35% | 7.91% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | $31.21B | 9.83 | 15.64% | 2.71% | 32.55% | 30.10% | |
62 Neutral | $23.79B | 10.96 | 10.19% | 0.37% | -2.36% | -0.42% | |
62 Neutral | $29.63B | 9.08 | 9.08% | 2.86% | 1.72% | 13.27% | |
53 Neutral | $32.64B | 9.11 | 13.55% | 2.48% | 27.54% | 28.12% |
* Financial Sector Average
BKHYY
Bank Hapoalim BM
119.15
39.01
48.68%
BBD
Banco Bradesco SA
3.29
0.57
21.09%
BAP
Credicorp
319.89
116.26
57.09%
FCNCA
First Citizens BancShares
2,074.25
250.17
13.72%
KB
Kb Financial Group
100.39
19.13
23.54%
SHG
Shinhan Financial Group Co
63.91
19.63
44.33%
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.