TEL AVIV, Feb 29 (Reuters) - Bank Hapoalim, Israel’s largest lender, reported a higher quarterly profit but missed expectations as negative inflation weighed on financing income. Hapoalim on Monday said it posted fourth-quarter net profit of 586 million shekels ($150 million), compared with 487 million a year earlier and below expectations of 731.5 million shekels in a Reuters poll of analysts. Net financing income fell to 2.11 billion shekels from 2.15 billion, while its provision for credit losses was 147 million shekels versus 363 million a year earlier. In the 2014 quarter Hapoalim provisioned 89 million shekels to cover a tax evasion investigation by U.S. authorities and 360 million shekels for a cost-cutting programme. Hapoalim’s core Tier 1 capital ratio to risk-weighted assets in Basel III terms rose to 9.63 percent at the end of 2015 from 9.29 percent at the end of 2014. The bank’s board approved a dividend of 117 million shekels for the fourth quarter, a distribution of 20 percent of 2015 annual net profit to bring the total for 2015 to 616 million shekels. Credit to the public last year rose 5.5 percent to 278.5 billion shekels. $1 = 3.9080 shekels Reporting by Tova Cohen; Editing by Steven Scheer
Bank Hapoalim - 4Q2015 net profit of ILS 586m ($150m), up from ILS 487m ($125m) YoY Israel Railways The bank's core Tier 1 capital ratio to risk-weighted assets in Basel III terms rose to 9.63% at the end of 2015 from 9.29% YoY; the bank's board has also approved a dividend of ILS 117m ($30m) for the fourth quarter, a distribution of 20% of 2015 annual net profit to bring the total for 2015 to ILS 616m ($158m).