TEL AVIV, Israel, Oct. 13, 2008 (GLOBE NEWSWIRE) -- Bank Hapoalim (TASE:POLI) (LSE:BKHD) (Pink Sheets:BKHYY) expects that net profit in the second half of 2008 should be more than NIS 1 billion. Accordingly, net return on equity in 2008 is expected to be between 0% and 2%. Return of operating profit on equity, taking into account the exceptional losses in the first quarter due to write-offs of investments in asset-backed securities, is expected to be negative, at (-3)% to (-1)%.
These forecasts are based on the effects of the financial crisis currently in progress in the U.S. and globally, and its implications for the worldwide financial and economic system, including in Israel. The forecasts take into account factors including the effect of the collapse of the American investment bank Lehman Brothers on Bank Hapoalim (on which the Bank reported last month, immediately upon the collapse of Lehman).
Bank Hapoalim continues its business activity according to its multi-year strategic plan, with adjustments and changes arising from the shifts in the international capital markets.
As a long-standing policy of the Board of Directors, Bank Hapoalim is the only bank in Israel to announce its return on equity target at the beginning of each year, aimed at maintaining appropriate transparency and providing current information to the public according to the data available at the time. Such forecasts naturally constitute forward-looking information.
About Bank Hapoalim
Bank Hapoalim is Israel's leading financial group. In Israel, the Bank Hapoalim Group includes financial companies involved in investment banking, credit cards, trust services and portfolio management. The Group also has holdings in non-banking sectors.
Internationally, Bank Hapoalim operates through 44 branches, subsidiaries and representative offices, in North and Latin America, Europe, the Far East, Turkey and Australia. In these markets, the Bank is engaged in trade, corporate finance, private banking and retail banking.
Bank Hapoalim is the only Israeli Bank listed on both the Tel Aviv and London Stock Exchange. In addition, a Level-1 ADR is traded "over-the -counter" in New York.