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Poalim
(TASE:POLI)
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Rating:72Outperform
Price Target:
8,252.00
▲(6.15% Upside)
Action:Upgraded
Date:08/11/26
The score is driven primarily by solid profitability and a strong, guidance-backed earnings outlook, supported by reasonable valuation (P/E ~10.6) and a ~4.3% dividend yield. The main constraints are weaker recent revenue momentum, increased leverage, and cash flow volatility, which temper the otherwise constructive technical and fundamental backdrop.
Positive Factors
Strong profitability and ROE
Sustained high margins and quarter-level ROE show structural earnings power and operational efficiency. Durable profitability supplies internal capital for lending, cushions cyclical shocks, and supports steady shareholder distributions and reinvestment over the next several quarters.
Negative Factors
Rising leverage
A meaningful step-up in leverage increases balance-sheet risk and narrows capital buffers. Higher debt sensitivity raises vulnerability to funding stress or regulatory constraints, making the bank less able to absorb shocks or maintain high payout targets without external issuance.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong profitability and ROE
Sustained high margins and quarter-level ROE show structural earnings power and operational efficiency. Durable profitability supplies internal capital for lending, cushions cyclical shocks, and supports steady shareholder distributions and reinvestment over the next several quarters.
Read all positive factors
Poalim (POLI) vs. iShares MSCI Israel ETF (EIS)
Market Cap
₪101.66B
Dividend Yield4.13%
Average Volume (3M)2.99M
Price to Earnings (P/E)10.9
Beta (1Y)0.81
Revenue Growth3.03%
EPS Growth12.52%
CountryIL
Employees8,409
SectorGeneral
Sector StrengthN/A
IndustryBanks - Regional
Share Statistics
EPS (TTM)7.13
Shares Outstanding1,307,729,700
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 TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)6.96
Revenue Forecast (FY)₪24.49B
Poalim Business Overview & Revenue Model
Company Description
Bank Hapoalim B.M., along with its subsidiaries, delivers a comprehensive suite of banking and financial solutions to clients both within Israel and across international markets. The institution's operations are structured into three main division...
How the Company Makes Money
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Poalim Earnings Call Summary
Earnings Call Date:Aug 11, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Mar 11, 2027
Earnings Call Sentiment Positive
The call presented a strongly positive operational and financial performance: robust profitability (Q2 net profit up 17.1% QoQ), high ROE (15%, ~16.4% excl. special tax), diversified double-digit YoY credit growth (14.3%), very low NPLs (0.5%) with strong coverage, controlled expenses (cost-income ~30.6%) and healthy liquidity and capital metrics. Key negatives are management-confirmed constraints and risks: the special bank tax materially suppresses reported ROE, provisions remain elevated (cost of risk 0.22%) with allowance ratio slightly diluted by growth, financing income benefitted significantly from CPI (masking underlying momentum), potential NIM pressure from expected rate cuts, some retail deposit shifts and a modest compression of capital buffers due to fast growth and a high payout policy. Overall, positives (profitability, growth, asset quality, cost control, liquidity) outweigh the measured headwinds and uncertainties discussed.Positive Updates
Strong Profitability and ROE
Net profit of ILS 2.5 billion in Q2 (up 17.1% quarter-on-quarter); EPS ILS 1.9. Return on equity 15% in the quarter (approximately 16.4% excluding the special bank tax); first-half ROE 14% (≈15.4% excl. special tax). ROE in the quarter was above the bank's annual target range.
Negative Updates
Special Bank Tax Impacting ROE
Special bank tax reduces ROE by an estimated 1.3%–1.4% on an annual basis, materially affecting reported ROE comparisons and requiring exclusion to show underlying profitability (~16.4% excluding tax).
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Profitability and ROE
Net profit of ILS 2.5 billion in Q2 (up 17.1% quarter-on-quarter); EPS ILS 1.9. Return on equity 15% in the quarter (approximately 16.4% excluding the special bank tax); first-half ROE 14% (≈15.4% excl. special tax). ROE in the quarter was above the bank's annual target range.
Read all positive updates
Company Guidance
Guidance-wise, the bank reiterated 2026 targets of net profit ILS 8.5–9.5 billion and ROE 13%–14%, and said it expects to return to an ROE of 14%–15% next year with net profit of ILS 9.5–10.5 billion; for both years it plans average growth of 8%–9% and a payout ratio of 50%–60%. Management also highlighted the current 50% distribution in respect of Q2 (ILS 1.2 billion total; ILS 995 million cash or ILS 0.76 per share, with 20% via buyback), a CET1 ratio of 11.83% (vs. internal target 11%), shareholders’ equity +8.1% YoY, total credit ILS 536 billion (+14.3% YoY, +3.3% q/q, +6.6% YTD), deposits +7.1% YoY (+2.5% q/q), NPLs 0.5% with allowance ratio 1.65% (~3x coverage), Q2 net profit ILS 2.5 billion (EPS ILS 1.9), NIM 2.70% (up from 2.49%), cost-income 30.6% (33.3% H1), cost of risk 0.22% (ILS 298m), LCR 126%, and a reminder that the special bank tax reduces ROE by ~1.3–1.4 percentage points on an annual basis.Poalim Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
68
Positive
Cash Flow
55
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 42.99B | 42.97B | 40.48B | 38.20B | 23.63B | 16.22B |
| Gross Profit | 22.76B | 23.00B | 21.93B | 21.31B | 17.87B | 14.30B |
| EBITDA | 15.31B | 15.55B | 13.02B | 12.07B | 10.70B | 8.41B |
| Net Income | 9.45B | 9.80B | 7.63B | 7.36B | 6.53B | 4.91B |
Balance Sheet | ||||||
| Total Assets | 809.47B | 766.66B | 720.84B | 686.53B | 665.35B | 638.78B |
| Cash, Cash Equivalents and Short-Term Investments | 60.92B | 95.23B | 117.05B | 107.11B | 133.42B | 189.28B |
| Total Debt | 69.19B | 64.23B | 49.79B | 22.36B | 27.47B | 26.27B |
| Total Liabilities | 742.33B | 701.99B | 662.69B | 634.10B | 618.85B | 596.03B |
| Stockholders Equity | 67.14B | 64.68B | 58.15B | 52.43B | 46.50B | 42.73B |
Cash Flow | ||||||
| Free Cash Flow | 11.31B | 17.50B | 8.85B | -1.41B | -568.00M | 4.29B |
| Operating Cash Flow | 12.35B | 18.57B | 9.83B | -437.00M | 132.00M | 5.18B |
| Investing Cash Flow | -63.18B | -90.11B | -27.01B | -27.15B | -67.97B | -45.87B |
| Financing Cash Flow | 33.76B | 28.47B | 26.47B | 1.96B | 10.55B | 91.97B |
Poalim Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | ₪101.66B | 10.86 | 15.13% | 4.32% | 3.03% | 12.52% | |
71 Outperform | ₪61.07B | 10.92 | 16.87% | 4.71% | 12.78% | 1.42% | |
67 Neutral | ₪111.72B | 10.81 | 15.67% | 4.47% | 0.96% | 8.30% | |
64 Neutral | ₪41.60B | 10.37 | 13.10% | 4.88% | -4.38% | -4.54% | |
58 Neutral | ₪24.30B | 11.27 | 15.81% | 6.42% | 6.44% | -8.63% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
IL:POLI
Poalim
7,774.00
1,515.99
24.22%
IL:LUMI
Leumi
7,592.00
1,388.32
22.38%
IL:FIBI
Fibi Bank
24,230.00
2,792.52
13.03%
IL:DSCT
Discount
3,400.00
355.56
11.68%
IL:MZTF
Mizrahi Tefahot
23,450.00
3,351.85
16.68%
IL:JBNK
Jerusalem
2,011.00
-314.96
-13.54%
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.