Bank Hapoalim BM (IL:POLI)
TASE:POLI
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Poalim
(TASE:POLI)
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Rating:69Neutral
Price Target:
8,387.00
▲(11.83% Upside)
Action:DowngradedDate:03/26/26
The score is driven by strong profitability/ROE and a constructive earnings-call outlook (targets for high ROE and higher payouts), supported by reasonable valuation (low P/E and solid yield). These positives are tempered by weakening technical momentum and fundamental watch-items: 2025 revenue contraction, rising leverage, and historically volatile cash flows.
Positive Factors
High and Consistent ROE
Sustained ROE near the mid-teens reflects persistent profitability and efficient capital use. Over the medium term this underpins cash generation and supports management's higher payout targets, enabling durable shareholder distributions while still funding loan growth and capital needs.
Negative Factors
Rising Leverage
Material increase in leverage compresses balance-sheet flexibility and raises funding and solvency sensitivity to shocks. Over the medium term higher leverage can constrain capital actions, limit the bank's ability to absorb losses without tightening lending or cutting distributions, and increase refinancing risk.
Read all positive and negative factors
Positive Factors
Negative Factors
High and Consistent ROE
Sustained ROE near the mid-teens reflects persistent profitability and efficient capital use. Over the medium term this underpins cash generation and supports management's higher payout targets, enabling durable shareholder distributions while still funding loan growth and capital needs.
Read all positive factors
Poalim (POLI) vs. iShares MSCI Israel ETF (EIS)
Market Cap
₪98.33B
Dividend Yield3.54%
Average Volume (3M)2.99M
Price to Earnings (P/E)10.1
Beta (1Y)0.83
Revenue Growth19.05%
EPS Growth18.98%
CountryIL
Employees8,480
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)157.00
Shares Outstanding1,311,111,300
10 Day Avg. Volume2,212,394
30 Day Avg. Volume2,987,811
Financial Highlights & Ratios
PEG Ratio0.32
Price to Book (P/B)1.47
Price to Sales (P/S)2.21
P/FCF Ratio5.43
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₪8,117.13Price Target Upside8.23% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)7.37
Revenue Forecast (FY)₪25.08B
Poalim 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
null...
Poalim 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 conveyed a predominantly positive performance story: strong profitability (ILS 9.8bn), high-quality, broad-based loan growth (13.4%), industry-leading efficiency and capital generation, solid digital traction (Bit) and promising one-off upside from property sales. Key near-term risks include geopolitical uncertainty, CPI-driven income volatility, a Q4 labor provision (ILS 200m) and the cautious build-up of collective credit reserves — but management emphasized conservative provisioning as a strength and set ambitious but achievable 2026–27 targets (net profit ILS 9–10bn, ROE 14–15%, loan growth 8–9%, payout 50–60%). On balance, highlights substantially outweigh lowlights.Positive Updates
Strong Profitability and ROE
Net profit of ILS 9.8 billion for 2025 (ILS 9.4 billion excluding ILS 380 million insurance reimbursement) with EPS of ILS 7.43 and full-year return on equity of 15.9% (15.3% adjusted), comfortably above prior targets.
Negative Updates
Q4 Headwinds — CPI Volatility and Labor Provision
Fourth-quarter ROE was 13%, impacted by negative CPI effects and a one-time ILS 200 million provision related to a labor dispute; these non-recurring items tempered quarterly profitability.
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 excluding ILS 380 million insurance reimbursement) with EPS of ILS 7.43 and full-year return on equity of 15.9% (15.3% adjusted), comfortably above prior targets.
Read all positive updates
Company Guidance
Bank Hapoalim’s guidance for 2026–27 targets 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% (building on 2025’s 50% payout and the additional ILS 200m Q4 distribution); management also expects to begin recognizing pretax real‑estate gains of ILS 800–900 million from 2027, assumes the special bank tax will be similar to the past two years, and referenced market assumptions of lower market‑implied interest rates and inflation (headline CPI ~1.8% y/y) with the policy rate at 4% and roughly three cuts priced in—while noting interest‑rate sensitivity on the income/capital side of about ILS 800 million per 1% move and relying on a base‑case GDP outlook of >4% if the operation is short.Poalim Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
71
Positive
Cash Flow
64
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 42.97B | 40.48B | 38.20B | 23.63B | 16.22B |
| Gross Profit | 23.00B | 21.93B | 21.31B | 17.87B | 14.30B |
| EBITDA | 15.55B | 13.02B | 12.07B | 10.70B | 8.41B |
| Net Income | 9.80B | 7.63B | 7.36B | 6.53B | 4.91B |
Balance Sheet | |||||
| Total Assets | 766.66B | 720.84B | 686.53B | 665.35B | 638.78B |
| Cash, Cash Equivalents and Short-Term Investments | 95.23B | 117.05B | 107.11B | 133.42B | 189.28B |
| Total Debt | 64.23B | 49.79B | 22.36B | 27.47B | 26.27B |
| Total Liabilities | 701.99B | 662.69B | 634.10B | 618.85B | 596.03B |
| Stockholders Equity | 64.68B | 58.15B | 52.43B | 46.50B | 42.73B |
Cash Flow | |||||
| Free Cash Flow | 17.50B | 8.85B | -1.41B | -568.00M | 4.29B |
| Operating Cash Flow | 18.57B | 9.83B | -437.00M | 132.00M | 5.18B |
| Investing Cash Flow | -90.11B | -27.01B | -27.15B | -67.97B | -45.87B |
| Financing Cash Flow | 28.47B | 26.47B | 1.96B | 10.55B | 91.97B |
Poalim Technical Analysis
Neutral
7500.00
Price Trends
7800.17
Negative
7531.84
Negative
6863.51
Positive
Market Momentum
-120.24
Positive
45.71
Neutral
25.89
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:POLI, the sentiment is Neutral. The current price of 7500 is below the 20-day moving average (MA) of 7634.98, below the 50-day MA of 7800.17, and above the 200-day MA of 6863.51, indicating a neutral trend. The MACD of -120.24 indicates Positive momentum. The RSI at 45.71 is Neutral, neither overbought nor oversold. The STOCH value of 25.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IL:POLI.
Poalim Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | ₪103.68B | 10.21 | 15.67% | 3.70% | 6.95% | 12.41% | |
69 Neutral | ₪98.33B | 10.09 | 15.13% | 3.54% | 19.05% | 18.98% | |
68 Neutral | ₪60.31B | 10.70 | 16.87% | 4.11% | 11.00% | 6.03% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
63 Neutral | ₪39.33B | 9.56 | 13.10% | 3.69% | 14.48% | 4.65% | |
62 Neutral | ₪24.51B | 10.85 | 15.81% | 4.57% | 14.16% | 1.05% |
* Financial Sector Average
IL:POLI
Poalim
7,500.00
2,806.17
59.78%
IL:LUMI
Leumi
7,011.00
2,255.53
47.43%
IL:FIBI
Fibi Bank
24,440.00
6,415.33
35.59%
IL:DSCT
Discount
3,215.00
770.87
31.54%
IL:MZTF
Mizrahi Tefahot
23,200.00
7,285.99
45.78%
IL:FIBIH
Fibi Holdings
30,810.00
12,302.54
66.47%
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.