Bank Hapoalim BM (BKHYY) AI Stock Analysis

21 Followers

Bank Hapoalim BM

(Other OTC:BKHYY)

Select Model

Rating:79Outperform

Price Target:$132.00▲(14.76% Upside)

Action:reiterated

Date:08/18/26

The score is driven mainly by strong financial performance and a positive earnings call, both of which point to healthy profitability, disciplined capital management, and solid shareholder returns. Valuation is supportive, while technicals are positive but somewhat stretched.

Positive Factors

Diversified credit growthBroad-based credit expansion indicates strong customer demand across multiple lending franchises rather than reliance on one segment. A larger, diversified loan book can support recurring interest income and deepen customer relationships, provided asset quality remains controlled.

Negative Factors

Rising balance-sheet leverageThe sharp increase in debt-to-equity indicates a more debt-funded balance sheet and greater sensitivity to funding costs and credit cycles. Higher leverage can reduce financial flexibility and make earnings more vulnerable if market conditions or asset quality weaken.

Bank Hapoalim BM (BKHYY) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $30.26B
Dividend Yield: 4.26%
Average Volume (3M): 7,529
Price to Earnings (P/E): 10.3
Beta (1Y): 0.28
Revenue Growth: 18.94%
EPS Growth: 29.29%
Country: US
Employees: 8,409
Sector: Financial
Sector Strength: 68
Industry: Banks - Regional

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 prim...

How the Company Makes Money

Bank Hapoalim primarily earns revenue through banking spread income and fee-based services. A major source is net interest income: it takes deposits and other funding and deploys them into interest-earning assets such as loans to households and busin...

Bank Hapoalim BM Earnings Call Summary

Earnings Call Date:Aug 11, 2026(Q2-2026)|% Change Since:-6.54%|Next Earnings Date:Nov 16, 2026

Earnings Call SentimentPositive

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.

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

Strong profitability and solid cash generation support the score, with high margins, good returns, and a generally sound balance sheet. The main offsets are rising leverage, some margin normalization, and historically volatile cash flow.

Income Statement

86Very Positive

Balance Sheet

79Positive

Cash Flow

74Positive

Financial statement breakdown
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	14.42B	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

Technical Analysis SentimentNegative

Last Price115.03

Price Trends

50DMA124.22Negative

100DMA123.06Negative

200DMA124.42Negative

Market Momentum

MACD-2.20Negative

RSI41.71Neutral

STOCH59.00Neutral

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 115.03 is below the 20-day moving average (MA) of 119.20, below the 50-day MA of 124.22, and below the 200-day MA of 124.42, indicating a bearish trend. The MACD of -2.20 indicates Negative momentum. The RSI at 41.71 is Neutral, neither overbought nor oversold. The STOCH value of 59.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BKHYY.

Bank Hapoalim BM Peers Comparison

Overall Rating

UnderperformOutperform

Sector (68)

Financial Indicators

BKHYY against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BKHYY	79Outperform	$30.38B	10.34	14.47%	4.26%	18.94%	29.29%
HBAN	72Outperform	$31.70B	12.26	8.19%	3.92%	24.22%	-14.23%
MTB	71Outperform	$31.52B	11.50	10.65%	2.71%	-0.10%	18.13%
KB	70Outperform	$38.32B	8.74	11.06%	2.82%	27.58%	13.76%
Sector *	68Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
BBD	64Neutral	$27.21B	5.53	14.24%	5.76%	29.04%	34.36%
SHG	63Neutral	$29.12B	7.71	9.51%	3.00%	27.85%	15.08%

* Financial Sector Average

Performance Comparison

BKHYY and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
BKHYY	Bank Hapoalim BM	115.03	11.37	10.97%
BBD	Banco Bradesco	2.57	-0.85	-24.94%
HBAN	Huntington Bancshares	15.82	1.09	7.38%
KB	Kb Financial Group Inc.	117.42	32.04	37.53%
MTB	M&T Bank Corporation	221.12	45.10	25.62%
SHG	Shinhan Financial	66.59	13.44	25.29%

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.

Date of analysis: Aug 17, 2026

Bank Hapoalim BM AI Stock Analysis