Bakshi Finance — Family Office
The information presented on this site is provided for informational and educational purposes only. It does not constitute investment advice, investment marketing, or a substitute for personalised advice.
The firm operates as a Family Office serving qualified investors. The firm's founder held a licensed investment-advisory practice from 2008 through 2023.
This site does not participate in the investment decision.
Bank Hapoalim B.M.
Bank Hapoalim B.M. | TASE | Banking
Data as of: 17/04/2026 | Primary source: bankhapoalim.co.il + market.tase.co.il
POLI
Research Depth · Standard
1 Company Profile
Bank Hapoalim is one of Israel's two largest banks. The group provides retail, commercial and corporate banking services, together with capital-markets and asset-management activities. The bank trades on the Tel Aviv Stock Exchange and is a constituent of the TA-35 index.
This summary is not a recommendation. It is a factual list of key financial metrics.
Market Cap
NIS 103.5B
17/04/2026 | TA-125
Net Income 2025
NIS 9.8B
2024: 7.6B | 2023: 7.4B
ROE 2025
15.9%
2024: 13.8% | 2023: 15.0%
CET1
11.98%
Regulatory minimum: ~9%
Cost / Income
34.2%
2024: 41.0% | 2023: 38.5%
TA-125 Weight
4.67%
TA-35 constituent
Performance — 3 Years
Metric
2025
2024
2023
Net Income (NIS B)
9.80
7.64
7.36
YoY Change
+28.4%
+3.7%
+12.7%
ROE
15.9%
13.8%
15.0%
Cost / Income
34.2%
41.0%
38.5%
CET1
11.98%
11.80%
12.02%
Provisions (NIS B)
1.30
0.69
1.88
Balance Sheet
Metric
2025
2024
2023
Total Assets (NIS B)
766.7
720.8
686.5
Shareholders' Equity (NIS B)
64.7
58.2
52.4
Credit Portfolio (NIS B)
502.9
443.5
407.4
Credit Growth
13.4%
8.9%
4.8%
Deposits (NIS B)
592.7
574.3
554.6
Missing data: NPL, Coverage Ratio, NIM — not available in press releases. Disclosed in the full annual report (PDF).
3 Industry & Competitive Context
Israeli banking is an oligopoly — five banks control approximately 95% of the market, supervised by the Bank of Israel. Barriers to entry are high: a banking licence, capital requirements, public trust, and infrastructure.
Bank
Segment
Hapoalim
Universal bank
Leumi
Universal bank
Mizrahi-Tefahot
Universal bank + mortgages
Discount
Universal bank
First International (FIBI)
Universal bank
4 Risk Factors
Risk
Context
Credit-quality deterioration
Loan-loss provisions rose from NIS 693M (2024) to NIS 1,299M (2025). The bank cited an expansion of collective provisions in light of portfolio growth and macroeconomic uncertainty.
Falling interest rates
77% of revenues are net-interest income — high sensitivity to Bank of Israel policy.
Geopolitical risk
Near-exclusive exposure to the Israeli economy.
Regulation
Higher capital requirements; potential dividend restrictions.
Competition
Fintech and digital banking — though incumbents still dominate deposit share.
5 Analytical Lens — The Questions We Ask
In professional company analysis, the question is not "is this good?" but rather "through which lenses must this company be examined so that we do not miss what matters most?" At Bakshi Finance, every analysis passes through six lenses. The text below is not a judgement — it is a map of the questions this analysis is intended to answer.
This framework is intended to structure analysis, not to produce an investment conclusion.
Growth
How is the bank growing its credit portfolio? Does 13.4% growth reflect organic demand, risk expansion, or a combination? What would occur under a meaningfully different interest-rate environment?
Profitability
What is driving the improvement in the cost/income ratio (38.5% → 34.2%)? Is this structural (digitalisation) or cyclical (elevated revenues)?
Leverage
What does a CET1 of 11.98% imply for flexibility in a stressed scenario? What is the cushion above the regulatory minimum (~9%)?
Competitive Position
What protects the deposit base? Is fintech a threat to the core, or only to peripheral segments?
Management Quality
What is the capital-allocation policy? How consistent is management in delivering against stated targets?
Business Complexity / Risk
Where would a simplistic analysis of an Israeli bank go wrong? What is the unique impact of Bank of Israel regulation?
6 Scenario Framework
Scenarios are descriptive, not predictive. They outline possible conditions, not expected outcomes.
These scenarios carry no probability assessment, no preferred direction, and no expectation regarding which, if any, will materialise.
Constructive Scenario — if the following conditions hold:
The interest-rate environment remains stable, credit growth continues at 8-9% annually, credit quality is preserved (provisions normalise), and the cost/income ratio continues to improve. Under these conditions, the bank continues to generate a double-digit return on equity.
Base Scenario — if current trends continue:
Credit growth moderates to 5-7%, provisions run at a level similar to 2025 (0.25-0.30% of the portfolio), and Bank of Israel gradually reduces rates. The bank preserves profitability, albeit at a slower pace.
Adverse Scenario — if the following risks materialise:
A material deterioration in credit quality (a sharp rise in NPL), rapid rate cuts compressing the net-interest margin, a geopolitical event that weighs on the Israeli economy, or regulation that restricts dividend distribution.
Scenarios describe conditions, not forecasts. There is no preferred direction and no probability assessment expressed in this framework.
7 How to Think About This Bank
Bank Hapoalim is neither a technology story nor a growth story. It is a dominant participant in the Israeli banking oligopoly — a market in which five banks control nearly all deposits and credit. The essence of this bank — and the reason it requires a particular lens — is that it sits between two opposing forces: regulation that constrains risk (and shields it from competition), and an interest-rate environment together with the geopolitical situation that can shift profitability sharply within a single quarter.
The critical variables to monitor are three. First, the net-interest margin — a bank earning 77% of its revenues from interest is particularly sensitive to Bank of Israel policy. Second, credit quality — loan-loss provisions roughly doubled in 2025 (from NIS 693M to NIS 1,299M); the open question is whether this represents normalisation after an unusually light 2024 or an early signal of deterioration. Third, the cost/income ratio — down from 38.5% to 34.2% over three years; sustaining that trajectory is non-trivial and requires examining whether the improvement is structural (digitalisation, branch rationalisation) or cyclical (elevated revenues improving the ratio without a genuine decline in costs).
Where the analysis may go wrong. First error — treating ROE of 15.9% as a steady-state figure. Bank Hapoalim reported ROE of 13.8% in 2024 and 15.0% in 2023. In 2025 the figure jumped to 15.9%, but part of the jump reflects non-recurring items. Examining normalised profit (NIS 9.4B versus 9.8B reported) reveals the gap. Second error — ignoring the provisions context. In 2023 (a year of conflict) provisions stood at NIS 1,879M. In 2024 they dropped to NIS 693M — an unusual trough. In 2025 they rose again to NIS 1,299M. Reading 2025 without the 2023–2024 context produces a misleading view of the trend.
What distinguishes professional analysis of Hapoalim from headlines. Headlines on Hapoalim speak of "record profit" or "rising dividend". Professional analysis addresses three things: (a) what the revenue structure implies about sensitivity to the rate environment; (b) whether the efficiency improvement is sustainable or cyclical; and (c) what the provision trajectory implies about the quality of the credit portfolio built during the period of rapid growth. These are not what one buys or sells — they are what one asks before deciding.
The difference between surface-level analysis and professional thinking often lies in the variables that are not immediately visible.
● Net Income — 3 Years (NIS B)
● ROE and Cost/Income (%)
8 Sources & Data
#
Source
Date
Type
1
bankhapoalim.co.il — 2025 Annual Report
05/03/2026
Official
2
bankhapoalim.co.il — 2023 Annual Report
07/03/2024
Official
3
bankhapoalim.co.il — Q3 2025
20/11/2025
Official
4
bankhapoalim.co.il — Q1 2025
19/05/2025
Official
5
bankhapoalim.co.il — Q3 2024
18/11/2024
Official
6
market.tase.co.il — TA-125
17/04/2026
Official
Missing: NPL, Coverage Ratio, NIM — disclosed in the full annual report PDF; not in press releases.
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Premium Content — Qualified Investors Only
The full Bank Hapoalim (POLI) analysis is available to Premium members of Bakshi Finance — Family Office. The analysis includes a professional review across 8 structured sections, 6 charts and a framework of scenarios.
In professional company analysis, the question is not "is this good?" but rather
"through which lenses must this company be examined so that we do not miss what matters most?"
Every Bakshi Finance analysis passes through six lenses. The text below is not a judgement — it is a map of the questions this analysis is intended to answer.
The analysis is based on an internal multi-factor analytical framework used in professional portfolio management. The framework maps the questions; the answers appear woven through the analysis above.
What the lens is not: there is no rating, no score, no comparison between this company and another, and no preference expressed. The same six questions are asked of every company on the site — what varies is the answers, not the instrument.
This framework is intended to structure analysis, not to produce an investment conclusion.
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Growth
How is the company growing? Is the growth driven by volume, price, or mix? Is it stable across cycles?
💰
Profitability
How do margins behave over time? How much of reported earnings translates into genuine free cash flow?
⚖️
Leverage
What is the capital structure? How flexibly can the company navigate a down-cycle or a period of elevated financing costs?
🏰
Competitive Position
What protects its revenues from erosion? How long is that protection likely to endure?
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Management Quality
How does management allocate capital? What is their track record on strategic decisions?
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Business Complexity / Risk
Where would a simplistic analysis go wrong? What is exposed to regulation, cyclicality, or technological change?
Key Observations
This summary is not a recommendation. It is a factual list of what the analysis has identified. The decision rests with the client.
Disclosure — Family Office
Bakshi Finance operates as a Family Office serving qualified investors only. Mr. Yaron Bakshi held a licensed investment-advisory practice from 2008 through 2023. As of the date of this publication, the firm does not hold an investment-advisory, investment-marketing or portfolio-management licence. This document is provided for research and professional education purposes only. Nothing herein constitutes a recommendation to buy, sell, hold or take any action with respect to any security. Nothing herein is a substitute for personalised advice based on an individual's circumstances. All decisions remain the sole responsibility of the investor. Past performance is not indicative of future results.
