Bank Hapoalim B.M. (BKHPF)

Bank Hapoalim B.M. (BKHPF) Financial Services Profile

Bank Hapoalim B.M., founded in 1921 and headquartered in Tel Aviv, is a major Israeli bank offering comprehensive financial services, including retail and corporate banking, capital markets, and international banking, serving a wide array of clients through an extensive network of branches and digital channels, with a strong focus on the Israeli market.

What Is the Investment Thesis for BKHPF?

Bank Hapoalim B.M. presents a compelling investment case based on its strong market position in Israel and its diversified range of financial services. With a market capitalization of $30.08B and a P/E ratio of 9.7, the bank demonstrates financial stability and profitability, supported by a healthy profit margin of 22.8% and a gross margin of 53.5%. The dividend yield of 3.38% offers an attractive income stream for investors. Growth catalysts include expanding its digital banking services and increasing its presence in international markets. However, potential risks include regulatory changes in the financial sector and economic fluctuations in Israel and globally. The bank's beta of 0.40 suggests lower volatility compared to the overall market.

Based on FMP financials and quantitative analysis

BKHPF Key Highlights

• Market capitalization of $30.08B, reflecting its significant size and influence in the Israeli banking sector.
• P/E ratio of 9.7, indicating a potentially undervalued stock compared to its earnings.
• Profit margin of 22.8%, showcasing the bank's ability to generate profit from its revenue.
• Gross margin of 53.5%, highlighting the efficiency of the bank's operations.
• Dividend yield of 3.38%, providing a steady income stream for investors.

Who Are BKHPF's Competitors?

BKHPF is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are BKHPF's Key Strengths?

• Strong market position in Israel.
• Diversified range of financial products and services.
• Extensive branch network and digital presence.
• Experienced management team.

What Are BKHPF's Weaknesses?

• Limited international presence compared to global banks.
• Exposure to the Israeli economy, which can be volatile.
• Dependence on interest income, which is sensitive to interest rate changes.
• Operational inefficiencies.

What Could Drive BKHPF Stock Higher?

• Expansion of digital banking services to attract new customers and enhance customer experience.
• Increased focus on SME lending to tap into a large and underserved market segment.
• Strategic partnerships and acquisitions to expand market reach and enhance product offerings.
• International expansion to capture a share of the growing global financial services market.
• Enhancement of wealth management services to cater to the growing demand for investment and financial planning solutions.

What Are the Key Risks for BKHPF?

• Financial-distress signal — its Altman Z-Score of 0.38 sits in the distress zone (elevated bankruptcy risk).
• Increasing competition from local and international banks could erode market share and profitability.
• Regulatory changes in the financial sector could increase compliance costs and limit business activities.
• Economic downturns in Israel and globally could reduce demand for banking services and increase credit losses.
• Cybersecurity risks and data breaches could damage the bank's reputation and result in financial losses.
• Limited liquidity due to trading on the OTC market.

What Are the Growth Opportunities for BKHPF?

• Expansion of Digital Banking Services: Bank Hapoalim has the opportunity to further expand its digital banking services to cater to the growing demand for online and mobile banking solutions. By investing in innovative technologies and user-friendly platforms, the bank can attract new customers, enhance customer experience, and reduce operational costs. The market for digital banking is expected to grow significantly, with projections estimating a global market size of $1.2 trillion by 2030. Timeline: Ongoing.
• Increased Focus on SME Lending: Small and medium-sized enterprises (SMEs) represent a significant growth opportunity for Bank Hapoalim. By offering tailored financial products and services to SMEs, the bank can tap into a large and underserved market segment. The SME lending market is projected to grow at a CAGR of 6.5% over the next five years, driven by the increasing need for financing among SMEs. Timeline: Ongoing.
• Strategic Partnerships and Acquisitions: Bank Hapoalim can pursue strategic partnerships and acquisitions to expand its market reach and enhance its product offerings. By collaborating with fintech companies or acquiring smaller banks, the bank can gain access to new technologies, customer segments, and geographic markets. The market for fintech partnerships and acquisitions is expected to remain active, with numerous opportunities for strategic alliances. Timeline: Ongoing.
• International Expansion: Bank Hapoalim has the potential to expand its international operations by targeting new markets and offering specialized financial services to international clients. By leveraging its expertise in areas such as trade finance and cross-border payments, the bank can capture a share of the growing global financial services market. The global market for financial services is projected to reach $26.5 trillion by 2027. Timeline: Ongoing.
• Enhancing Wealth Management Services: Bank Hapoalim can enhance its wealth management services to cater to the growing demand for investment and financial planning solutions among high-net-worth individuals. By offering personalized investment advice, portfolio management services, and estate planning solutions, the bank can attract and retain affluent clients. The global wealth management market is projected to reach $145 trillion by 2025. Timeline: Ongoing.

What Opportunities Does BKHPF Have?

• Expansion of digital banking services.
• Increased focus on SME lending.
• Strategic partnerships and acquisitions.
• Growth in wealth management services.

What Threats Does BKHPF Face?

• Increasing competition from local and international banks.
• Regulatory changes in the financial sector.
• Economic downturns in Israel and globally.
• Cybersecurity risks and data breaches.

What Are BKHPF's Competitive Advantages?

• Strong brand reputation and established presence in the Israeli banking market.
• Extensive network of branches and ATMs, providing convenient access for customers.
• Diversified range of financial products and services, catering to various customer needs.
• Experienced management team and skilled workforce.
• Strong relationships with corporate clients and government entities.

What Does BKHPF Do?

Bank Hapoalim B.M. was established in 1921 and has grown to become one of Israel's leading financial institutions. Headquartered in Tel Aviv, the bank provides a comprehensive suite of banking and financial products and services both in Israel and internationally. Its operations are structured into three primary divisions: Corporate Banking, Retail Banking, and Financial Markets and International Banking. The bank offers a wide range of services, including account management, credit solutions for various purposes, deposits, and savings plans. It also provides capital market services, securities trading, currency and derivatives trading, and securities custody services. Furthermore, Bank Hapoalim offers research, consulting, advisory services, pension advisory, and retirement planning services, as well as housing loans. The bank extends credit for routine operations and investment financing, guarantees, letters of credit, foreign trade, and transactions in financial and derivative instruments. It also provides investment services in foreign currency, shekels, and securities. Bank Hapoalim serves a diverse clientele, including households, private banking customers, foreign residents, small businesses, financial asset managers, middle-market business clients, and large corporations. The bank's extensive network comprises 175 branches, 601 external and 131 internal automatic teller machines, and various self-service stations, ensuring accessibility and convenience for its customers.

What Products and Services Does BKHPF Offer?

• Provides account-management services to individuals and businesses.
• Offers credit solutions for various purposes, including personal and commercial loans.
• Provides deposit and savings plans to help customers manage their finances.
• Offers capital-market services, including securities trading and investment advice.
• Provides foreign trade and international trade financing services.
• Offers investment services in various channels, such as foreign currency and securities.
• Provides asset management, investment portfolio management, and investment banking services.
• Offers credit card services.

How Does BKHPF Make Money?

• Generates revenue through interest income from loans and advances.
• Earns fees from providing various banking and financial services, such as account management and investment advice.
• Profits from trading securities, currencies, and derivatives.
• Receives commissions from underwriting and issuance management services.

What Industry Does BKHPF Operate In?

Bank Hapoalim B.M. operates within the regional banking industry, which is characterized by increasing competition and evolving regulatory landscapes. The industry is influenced by factors such as interest rate changes, economic growth, and technological advancements. Bank Hapoalim competes with other regional banks like BLMIF (Bank Leumi Le-Israel B.M.), CEBCF (Israel Discount Bank Ltd), GBOOF (Mizrahi Tefahot Bank Ltd), GBOOY (First International Bank of Israel Ltd), and JPPHY (United Mizrahi Bank Ltd). The trend towards digital banking and personalized financial services is reshaping the industry, requiring banks to invest in technology and innovation to remain competitive.

Who Are BKHPF's Key Customers?

• Households and individuals seeking personal banking services.
• Small businesses requiring financing and banking solutions.
• Middle-market business clients seeking commercial banking services.
• Large corporations requiring complex financial solutions.
• Private-banking customers and high-net-worth individuals seeking wealth management services.

Bank Hapoalim B.M. Financial Trajectory

Bank Hapoalim B.M. (BKHPF) reported $9.87B in revenue for Q1 2026, a decline of 3.7% compared to the prior quarter. The company recorded net income of $2.11B, with diluted EPS of $1.62. Revenue has contracted over three consecutive quarters, which investors in this large-cap Financial Services stock should monitor closely. Across the four most recent quarters, BKHPF averaged $1.79 in diluted EPS.

Company Profile

Bank Hapoalim B.M. operates in the Banks - Regional industry within the Financial Services sector. It is headquartered in Tel Aviv, IL. The company is led by CEO Yadin Antebi. BKHPF has traded publicly since 2009.

How Bank Hapoalim B.M. Is Valued

Bank Hapoalim B.M. carries a market capitalization of $30.08B, placing it in the large-cap category. Relative to its peer group, BKHPF's quantitative score of 51/100 is roughly in line with the peer average of 56/100.

ROE 15%Key Financial Metrics

Return on equity for Bank Hapoalim B.M. stands at 14.8%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 1.2%, showing how much profit it generates from its asset base. BKHPF trades at a trailing price-to-earnings ratio of 9.66, below the Financial Services sector average of ~18x. Its free cash flow yield is 5.2%, a gauge of the cash the business throws off relative to its market value. A current ratio of 3.52 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 10.4%, the inverse of the P/E and a quick read on earnings relative to price.

F-Score 6/9Financial Health

Bank Hapoalim B.M.'s Piotroski F-Score is 6/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 0.38 places it in the distress zone, a signal of elevated financial risk.

FY2026 estForward Outlook

Wall Street analysts project Bank Hapoalim B.M. revenue of about $24.33B for fiscal 2026, with EPS near $6.92.

BKHPF Financials

BKHPF Latest News

BKHPF Analyst Consensus

BKHPF MoonshotScore

What Investors Ask About Bank Hapoalim B.M. (BKHPF) — Financial Services

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

Official Resources