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Bank Hapoalim BM
(OTC:BKHYY)
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Rating:78Outperform
Price Target:
$150.00
▲(20.99% Upside)
Action:Upgraded
Date:08/18/26
The score is driven primarily by healthy financial performance (strong profitability and improved recent cash generation) and supportive technical momentum. Valuation adds a boost due to the low P/E and solid dividend yield. Earnings call guidance was positive, though tempered by bank-tax ROE headwinds, potential NIM pressure from lower rates, and tighter capital buffer dynamics.
Positive Factors
Diversified credit growth and asset quality
Strong, diversified lending growth across retail, mortgages, mid-market and corporate customers supports future interest income. Very low NPLs and nearly three-times coverage provide resilience against credit deterioration.
Negative Factors
Rising balance-sheet leverage
The materially higher leverage indicates a more debt-funded balance sheet, increasing sensitivity to funding costs and credit-cycle stress. It may also constrain flexibility if asset quality or market liquidity weakens.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified credit growth and asset quality
Strong, diversified lending growth across retail, mortgages, mid-market and corporate customers supports future interest income. Very low NPLs and nearly three-times coverage provide resilience against credit deterioration.
Read all positive factors
Bank Hapoalim BM (BKHYY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$34.41B
Dividend Yield3.72%
Average Volume (3M)4.03K
Price to Earnings (P/E)11.2
Beta (1Y)0.28
Revenue Growth18.94%
EPS Growth29.29%
CountryUS
Employees8,409
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)35.40
Shares Outstanding261,107,850
10 Day Avg. Volume1,825
30 Day Avg. Volume4,025
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)11.92
Revenue Forecast (FY)$8.59B
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 money from core banking activities. The largest economic drivers are typically (1) net interest income—interest collected on loans and other interest-earning assets (such as mortgages, consumer and business loans, and...
Bank Hapoalim BM 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 communicated solid operational and financial performance: strong profitability (ROE and net profit growth), diversified credit growth, low NPLs with robust coverage, improved margins (helped by CPI), expense control and strong liquidity. Management reiterated capital discipline and attractive shareholder returns (50% payout). Key headwinds flagged include the special bank tax which trims ROE, modest moderation in capital buffers due to fast growth and high distributions, potential NIM pressure from expected rate cuts, and cautious housing market dynamics. On balance, the positive operational metrics and guidance outweigh the noted risks.Positive Updates
Strong Profitability and ROE
Net profit of ILS 2.5 billion in Q2, up 17.1% quarter-on-quarter; earnings per share ILS 1.9. Return on equity of 15% for the quarter (approximately 16.4% excluding special bank tax) and first-half ROE of 14% (roughly 15.4% excl. special tax).
Negative Updates
Special Bank Tax Drag on ROE
Special bank tax reduces ROE by approximately 1.3%–1.4% on an annual basis, materially affecting reported ROE compared with pre-tax-equivalent measures.
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; earnings per share ILS 1.9. Return on equity of 15% for the quarter (approximately 16.4% excluding special bank tax) and first-half ROE of 14% (roughly 15.4% excl. special tax).
Read all positive updates
Company Guidance
The bank guided to 2026 net profit of ILS 8.5–9.5 billion with return on equity of 13%–14%, and “next year” net profit of ILS 9.5–10.5 billion with ROE of 14%–15%; for both years it expects average growth of 8%–9% and a payout ratio of 50%–60%. Current distribution policy is 50% of net profit (Q2 distribution = ILS 1.2 billion, comprising ILS 995 million in cash dividends or ILS 0.76 per share, with buybacks making up 20% of total distribution). Management noted the special bank tax will reduce ROE by roughly 1.3%–1.4% on an annual basis and highlighted capital comfort (CET1 at 11.83% vs internal target 11% and regulatory minimum ~10.23%).Bank Hapoalim BM Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
70
Positive
Cash Flow
73
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 39.70B | 39.50B | 40.48B | 38.20B | 23.63B | 16.22B |
| Gross Profit | 20.88B | 21.15B | 21.93B | 21.31B | 17.87B | 14.30B |
| EBITDA | 15.19B | 14.30B | 13.02B | 12.07B | 10.70B | 8.41B |
| Net Income | 8.70B | 9.01B | 7.63B | 7.36B | 6.53B | 4.91B |
Balance Sheet | ||||||
| Total Assets | 814.44B | 762.84B | 720.84B | 686.53B | 665.35B | 638.78B |
| Cash, Cash Equivalents and Short-Term Investments | 61.29B | 94.75B | 117.05B | 107.73B | 133.42B | 189.28B |
| Total Debt | 69.61B | 63.91B | 20.75B | 22.36B | 27.47B | 26.27B |
| Total Liabilities | 746.89B | 698.49B | 662.69B | 634.10B | 618.85B | 596.03B |
| Stockholders Equity | 67.56B | 64.35B | 58.15B | 52.43B | 46.50B | 42.73B |
Cash Flow | ||||||
| Free Cash Flow | 64.01M | 16.09B | 8.85B | -1.41B | -568.00M | 4.29B |
| Operating Cash Flow | 1.08B | 17.07B | 9.83B | -437.00M | 132.00M | 5.18B |
| Investing Cash Flow | -52.74B | -82.85B | -27.01B | -27.15B | -67.97B | -45.87B |
| Financing Cash Flow | 33.62B | 26.17B | 26.47B | 1.96B | 10.55B | 91.97B |
Bank Hapoalim BM Technical Analysis
Positive
123.98
Price Trends
123.41
Positive
124.67
Positive
122.41
Positive
Market Momentum
2.37
Positive
58.49
Neutral
86.43
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 123.98 is below the 20-day moving average (MA) of 129.76, above the 50-day MA of 123.41, and above the 200-day MA of 122.41, indicating a bullish trend. The MACD of 2.37 indicates Positive momentum. The RSI at 58.49 is Neutral, neither overbought nor oversold. The STOCH value of 86.43 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | $34.52B | 12.65 | 10.66% | 2.50% | 0.31% | 22.76% | |
79 Outperform | $37.63B | 10.12 | 9.20% | 2.38% | 5.37% | 14.38% | |
78 Outperform | $34.41B | 11.16 | 14.47% | 3.72% | 18.94% | 29.29% | |
70 Outperform | $43.58B | 10.30 | 10.68% | 2.51% | 3.72% | 10.87% | |
68 Neutral | $37.85B | 7.22 | 13.60% | 6.56% | 32.37% | 27.68% | |
68 Neutral | $33.80B | 12.40 | 8.58% | 3.68% | 18.13% | -3.57% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
BKHYY
Bank Hapoalim BM
131.78
38.98
42.01%
BBD
Banco Bradesco SA
3.60
0.64
21.62%
HBAN
Huntington Bancshares
16.86
-0.27
-1.56%
KB
Kb Financial Group
132.01
46.62
54.60%
MTB
M&T Bank
239.83
46.57
24.10%
SHG
Shinhan Financial Group Co
84.06
34.69
70.27%
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.