Bank Hapoalim

Bank Hapoalim, whose name translates approximately as “The Workers’ Bank,” is one of Israel’s largest banking institutions. Established in 1921 by the Histadrut, Israel’s labor federation, together with the Zionist Organisation, the bank was created to support workers, cooperative activity and the developing economic institutions of the Jewish community in Mandatory Palestine. It later evolved into a broad-based commercial bank serving households, small businesses, corporations, high-net-worth clients and institutional investors. The bank’s business is centered on Israel, where it maintains a large retail and business network comprising branches, business centers, automated teller machines and digital channels. Its retail offering includes current accounts, deposits, consumer credit, mortgages, payment services, investment advice and mobile and online banking. Its corporate activities include lending, cash management, foreign trade, payments, structured finance and sector-focused relationship banking. Through capital-markets and related subsidiaries, the group also provides securities brokerage and custody, foreign-exchange and derivatives services, investment management, underwriting, research, investment banking and private-market financing. Bank Hapoalim underwent a major change in ownership during the late twentieth century. It was nationalized in 1983 after Israel’s bank-share crisis and remained under government control until its privatization in 1996. A consortium led by Ted Arison acquired control during that process. Arison Holdings, associated with Shari Arison, subsequently held a substantial stake, but the holding was gradually sold from 2018 through 2022. The completion of that sale left the bank without a controlling shareholder. The group has periodically maintained operations outside Israel, including activities in the United Kingdom, the United States, Canada, Switzerland, Luxembourg, the Cayman Islands and parts of Latin America. Its international footprint was later reduced substantially; by 2023, the New York branch was described as its remaining international banking operation. The bank has also developed sector and investment platforms, including Poalim Equity for private-company financing, investment and advisory work, and Poalim Tech, established to serve technology companies and startups. Digital banking and payments are important parts of the bank’s current strategy. Its channels include Hapoalim Internet, Hapoalim Mobile, telephone banking, self-service infrastructure and the Bit payment application. The group also pursued financial relationships with banks in Bahrain and the United Arab Emirates following the Abraham Accords and entered the digital-wallet market. Bank Hapoalim is listed on the Tel Aviv Stock Exchange under the symbol POLI and is included in the Tel Aviv 35 index. In 2023 it was described as Israel’s second-largest bank by equity. Its public profile has also been shaped by regulatory and reputational controversies, including a major United States resolution concerning assistance with tax evasion and money laundering, as well as criticism and investor exclusions connected with alleged financial links to Israeli settlements. In Israel, the bank has faced public debate over deposit remuneration, lending rates, profitability and customer service. The institution remains an active, diversified Israeli banking group with a strong emphasis on retail banking and a significant role in corporate and capital-markets finance.

Bank Hapoalim was founded in 1921 by the Histadrut and the Zionist Organisation. Its original purpose was closely connected with the labor movement and the economic development of the Jewish community in Mandatory Palestine. The institution’s name reflects that background: Hapoalim refers to workers or laborers. Over time, the bank expanded beyond its original constituency and became a general-purpose financial institution serving individuals, businesses and public and institutional clients. For much of its early and middle history, Bank Hapoalim was associated with the Histadrut. This changed dramatically during Israel’s 1983 bank-share crisis. The crisis led to the nationalization of the country’s major banks, including Bank Hapoalim, and the Israeli government retained ownership for more than a decade. In 1996 the bank was privatized and sold to a group of investors led by Ted Arison. The privatization marked its transition into a privately controlled, publicly traded banking group. The bank developed a broad domestic network and built businesses in retail banking, commercial lending, corporate finance, capital markets and international banking. Its Israeli operations came to include hundreds of branches and automated teller machines, regional business centers, dedicated corporate branches and industry teams. It also established direct banking channels, including telephone banking, internet banking, mobile applications and self-service systems. Its corporate division developed specialized coverage for large companies and middle-market customers, while the retail division served households, private-banking clients, foreign residents and small businesses. Bank Hapoalim also pursued international expansion. At different times its operations and subsidiaries extended to London, the United States, Canada, Switzerland, Luxembourg, the Cayman Islands, South America and other financial centers. The group later reduced this footprint as its strategy became more concentrated on Israel and selected international activities. By 2023, the New York branch was identified as the group’s remaining international banking operation. The group’s ownership structure changed again in the twenty-first century. Arison Holdings, led by Shari Arison, held approximately one-fifth of the shares until the gradual disposal of that position began in late 2018. The process concluded in September 2022, when shares valued at more than one billion shekels were sold. Bank Hapoalim consequently operated without a controlling shareholder. The bank has supplemented its traditional banking activities with specialized platforms. Poalim Equity invests in and lends to private companies and provides investment-banking advice, including support for mergers and acquisitions, private capital raising and public offerings. It also participates in private-equity funds and alternative investments. Poalim Tech was established in 2015 to provide banking and credit services to technology companies, with separate support for established growth companies and early-stage startups. The group has also developed Bit, a digital-payment application, as part of its innovation and strategy activities. In 2020, Bank Hapoalim admitted wrongdoing in two major U.S. matters. One involved assistance to U.S. taxpayers who concealed assets in Swiss and Israeli accounts; the other involved laundering bribes and kickbacks associated with the FIFA corruption investigation. The combined resolution produced penalties and forfeitures exceeding $900 million. The episode became one of the bank’s most consequential compliance and reputational events. The bank has also faced criticism concerning its alleged role in financing or supporting Israeli settlements in occupied Palestinian territories. Several institutional investors and pension funds excluded or divested from the bank, and a United Nations database published in 2020 included it among companies described as providing services connected with settlement activity. These allegations remain part of the bank’s international controversy profile. In the 2020s, Bank Hapoalim continued to report strong financial performance while facing criticism over customer service and the interest rates offered on deposits compared with rates charged on loans. It remains one of Israel’s largest banks, listed on the Tel Aviv Stock Exchange as POLI and included in the Tel Aviv 35 index. Its present model combines a large Israeli retail franchise with corporate banking, capital-markets activities, private-market investing, technology-sector coverage and digital payments.

1. 2025Noam Hanegbi becomes chairman

   Noam Hanegbi is appointed chairman of the board.

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2. 2024Yadin Antebi becomes CEO

   Yadin Antebi succeeds Dov Kotler as chief executive in August.

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3. 2022Arison stake sale is completed

   The disposal of Arison Holdings’ shares concludes, leaving the bank without a controlling shareholder.

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4. 2020U.S. compliance resolution

   The bank pleads guilty in U.S. cases involving tax evasion assistance and FIFA-related money laundering.

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5. 2018Arison Holdings begins selling its stake

   Shari Arison’s investment vehicle begins a gradual disposal of its substantial Bank Hapoalim holding.

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6. 2015Poalim Tech is established

   The bank creates a dedicated technology-sector platform for mature technology companies and startups.

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7. 1996Privatization under an investor consortium

   The government sells the bank to a consortium led by Ted Arison.

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8. 1983Bank is nationalized

   The Israeli government takes control of the bank following the Bank Stock Crisis.

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9. 1963Investment company is founded

   The bank establishes Bank Hapoalim Investment Company, later known as Hapoalim Investments.

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10. 1921Bank Hapoalim is established

    The Histadrut and the Zionist Organisation establish Bank Hapoalim to support labor and economic development.

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A full-service Israeli universal bank combining mass-market retail banking with corporate finance, private banking, capital-markets services and digital payments.

• Retail bankingConsumer banking

  Bank Hapoalim’s retail franchise serves households, private-banking customers, foreign residents and small businesses. Services include accounts, deposits, mortgages, consumer credit, payment cards, investment advice and day-to-day payment facilities. Customers can use branches, automated machines, telephone banking, online banking and mobile applications.

• Corporate and commercial bankingBusiness banking

  The corporate division provides lending and banking services to large companies, middle-market businesses and sector-specific corporate customers. Its activities include credit, cash management, foreign trade, payments, operational support and relationship management through regional business centers and dedicated corporate branches.

• Poalim EquityInvestment banking and private markets

  Poalim Equity invests in equity and debt issued by private companies and provides loans and growth financing. It also operates private-market and alternative-investment activities and advises on mergers and acquisitions, private capital raises, underwriting and public offerings, including offerings by Israeli or Israel-linked companies in the United States.

• Poalim TechTechnology-sector banking2015

  Poalim Tech is a specialized banking platform for technology companies. Its Israeli activities include a Tel Aviv growth center for mature companies and a Herzliya Pituach early-stage center for startups. The bank also supports U.S. technology businesses through its American operations and its relationship with BHI.

• BitDigital payments

  Bit is Bank Hapoalim’s digital-payment application and a central project of its innovation and strategy division. It supports electronic payments through mobile devices and represents the group’s expansion from conventional banking channels into digital wallets and person-to-person payment services.

• Capital-markets servicesCapital markets

  The financial-markets and international-banking activities cover securities brokerage and custody, foreign exchange, derivatives, research, portfolio management, investment advice, asset-manager support, underwriting and issuance management. These services connect Israeli and international corporate and institutional customers with financial markets.

• 2021Centennial Stamp

  Israel

  To mark its 100th anniversary, Bank Hapoalim worked with Israel Post and the Philatelic Service to issue a commemorative stamp designed by Miri Gistor.

  Outcome. A commemorative postal issue recognizing the bank’s centenary.

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• 2020Labor agreement and early-retirement planOther

  The bank faced a labor dispute with the Histadrut over employment terms and workforce arrangements.

  What changed. The parties agreed to average wage increases, a one-time employee grant and a reduction of more than 900 positions through early retirement.

  Aftermath. The labor dispute was canceled and a multi-year employment framework was established.

  One-time employee grant. NIS 210 million (2020 agreement covering 2018–2022)

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• 2020Expansion of digital payments and Gulf relationshipsStrategy

  The bank was responding to the growth of mobile payments and the normalization of relations between Israel and Gulf states under the Abraham Accords.

  What changed. Bank Hapoalim entered the digital-wallet sector and reached arrangements with banks in Bahrain and the United Arab Emirates.

  Aftermath. The initiatives broadened the bank’s digital and cross-border financial relationships.

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• 2018Gradual disposal of Arison Holdings stakeStrategy

  Arison Holdings had held approximately 20 percent of Bank Hapoalim’s shares.

  What changed. Shari Arison announced a gradual sale of the holding, completed in 2022.

  Aftermath. The bank was left without a controlling shareholder.

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• 2015Creation of Poalim TechStrategy

  Israel’s technology sector was becoming an important source of business activity and financing demand.

  What changed. The bank established Poalim Tech as a dedicated platform for established technology firms and startups.

  Aftermath. Technology-sector banking was organized around growth and early-stage service centers, with additional support for U.S. technology companies.

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• 1996PrivatizationStrategy

  Following more than a decade of government ownership after the 1983 banking crisis, Israel pursued the sale of Bank Hapoalim.

  What changed. The bank was sold to an investor consortium led by Ted Arison.

  Aftermath. Bank Hapoalim returned to private ownership and continued as a publicly traded bank.

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• 2020U.S. tax-evasion and FIFA money-laundering casesControversy

  Bank Hapoalim pleaded guilty to helping U.S. taxpayers conceal assets in Swiss and Israeli accounts and to laundering more than $20 million in bribes and kickbacks linked to FIFA corruption. The combined U.S. resolution involved penalties and forfeitures exceeding $900 million.

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• 2020Alleged financial links to Israeli settlementsControversy

  The bank was included in a United Nations database concerning companies described as supporting settlement activity in occupied territories. Pension funds and other investors in Denmark and Norway subsequently restricted or divested from the bank over the alleged links.

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• 2025Noam Hanegbi appointed board chairman

  Noam Hanegbi was appointed chairman of the bank’s board.

  Leadership change
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• 2024Yadin Antebi appointed chief executive

  Yadin Antebi became chief executive in August 2024, succeeding Dov Kotler.

  Leadership change
  Source
• 2023Bank Hapoalim faces criticism over profits, deposit rates and customer service

  The bank and other leading Israeli banks were criticized in a public debate over strong profitability, customer service and the gap between rising borrowing costs and the interest paid on deposits.

  PricingRegulation
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• 2020Bank Hapoalim settles labor dispute with wage increases and workforce reduction plan

  The bank and the Histadrut reached an agreement covering average wage increases for 2018–2022, a one-time employee grant and a plan to reduce staffing through early retirement.

  Other
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1. Bank Hapoalim
2. Bank Hapoalim official website