Bank Hapoalim B.M.

Bank Hapoalim, whose name means “Workers’ Bank,” is one of Israel’s largest financial institutions and a principal participant in the country’s retail and commercial banking markets. Established in 1921 by Histadrut, Israel’s trade-union federation, together with the Zionist Organisation, the bank was originally connected to the labor movement and was created to provide banking services to workers, cooperative enterprises, and the developing Jewish economy in Mandatory Palestine. Over time it expanded into a broad universal-banking group serving households, small businesses, middle-market companies, large corporations, institutional investors, and private clients. The bank’s core business is domestic banking. Its retail division serves households, small businesses, private-banking customers, and foreign residents through branches, investment-consulting centers, automated service points, telephone banking, internet banking, mobile applications, and other direct channels. The corporate division provides lending, payments, foreign-trade services, cash management, and sector-focused relationship banking to business customers. Large corporations are served through industry-specialized teams, while middle-market customers are handled through regional business centers and dedicated business branches. Bank Hapoalim also maintains substantial capital-markets and investment activities. Its financial-markets operations include securities trading and custody, foreign-exchange and derivatives activity, research, investment advice, portfolio management, underwriting, and issuance services. Poalim Equity, the group’s investment-banking and private-investment arm, invests in equity and debt, lends to private companies, supports mergers and acquisitions, advises on capital raising, and works with institutional investors and international partners. The group has also developed specialized services for technology companies through Poalim Tech, which supports both mature technology businesses and early-stage startups. Digital banking and payments have become important parts of the brand’s proposition. The bank provides online and mobile banking services and has been involved in the development of Bit, an Israeli digital-payment and wallet application. Its innovation and strategy activities have focused on improving customer access, electronic payments, and digitally delivered financial services while preserving a large physical distribution network. Historically, Bank Hapoalim had a much broader overseas footprint, including operations or subsidiaries in the United Kingdom, Switzerland, Luxembourg, the United States, Canada, South America, and the Cayman Islands. The group subsequently reduced its international presence, and by 2023 its remaining overseas banking operation was reported to be its New York branch. International activity nevertheless remains relevant through cross-border corporate banking, capital markets, private banking, and relationships with overseas financial institutions. The bank was nationalized in 1983 after Israel’s bank-stock crisis. It remained government-owned until 1996, when a consortium led by Ted Arison acquired control. Arison Holdings, associated with Shari Arison, later held a substantial stake, but the gradual sale of those holdings concluded in 2022 and left Bank Hapoalim without a controlling shareholder. The company is listed on the Tel Aviv Stock Exchange under POLI and is included in the Tel Aviv 35 Index. Bank Hapoalim has faced significant regulatory and reputational challenges. In 2020 it pleaded guilty in the United States to conduct involving the facilitation of tax evasion by American taxpayers and the laundering of bribes connected with the FIFA corruption scandal. The bank agreed to penalties and forfeitures exceeding $900 million in aggregate. It has also attracted criticism and investment exclusions related to alleged financing and banking services connected with Israeli settlements in terr…

Bank Hapoalim was founded in 1921 by Histadrut and the Zionist Organisation. Its original identity was closely associated with Israel’s labor movement and with the financing of workers, cooperatives, and national economic development. The name “Hapoalim” refers to workers, reflecting the institution’s social and political origins. For much of its early history the bank remained linked to Histadrut. Israel’s financial system changed dramatically during the 1983 Bank Stock Crisis, when the government intervened to stabilize the banking sector. Bank Hapoalim was nationalized and transferred into state ownership. It remained under government control until 1996, when it was privatized through a sale to a group of investors led by Ted Arison. The privatization marked the bank’s transition from a labor-movement institution into a commercially oriented, privately controlled banking group. Following privatization, the bank expanded its retail, corporate, investment, and international operations. It built a large domestic branch and ATM network and developed specialized structures for large corporations, middle-market companies, small businesses, private clients, and institutional investors. Its capital-markets activities grew to include brokerage, custody, research, portfolio management, foreign exchange, derivatives, underwriting, and investment-banking services. Poalim Equity developed as an investment and advisory platform, while Poalim Tech was established in 2015 to provide banking and financing services to technology companies at different stages of development. Bank Hapoalim also pursued an international strategy through subsidiaries and branches in London, Switzerland, the United States, Canada, Luxembourg, South America, and the Cayman Islands. This presence supported private banking, corporate banking, asset management, and capital-markets activities. The group later retrenched internationally, and by 2023 its remaining overseas banking presence was reported to be the New York branch. In the ownership structure associated with the Arison era, Arison Holdings, led by Shari Arison, held approximately one-fifth of the bank’s shares until a gradual disposal process began in late 2018. The sale process ended in September 2022, when shares worth more than one billion shekels had been sold and the bank no longer had a controlling shareholder. The bank has repeatedly invested in digital delivery. Its direct channels include internet banking, mobile banking, telephone services, automated machines, and customer-support channels. It has also been involved in Bit, a digital wallet and payment application developed for the Israeli market. These services complement the physical network, which has included more than 250 branches and hundreds of ATMs in Israel, together with regional business centers and dedicated corporate-service locations. Bank Hapoalim’s recent history includes both financial growth and heightened scrutiny. In 2020 it pleaded guilty in the United States to helping customers evade taxes and to laundering bribes linked to FIFA corruption. The combined settlement involved very substantial criminal penalties and forfeitures. The bank has also been criticized by civil-society groups and institutional investors over alleged links between its banking services and Israeli settlements in occupied territories. In 2023, the bank and its peers faced criticism from the Bank of Israel governor and the public over strong profits, deposit rates, and customer service during a period of high interest rates and increased household financial pressure. The bank’s current operating model is organized around corporate banking, retail banking, financial markets and international banking, and innovation and strategy. It remains one of Israel’s largest listed banks, although its relative ranking varies according to the measure used. Its present identity combines a historic labor-oriented name with the capabilities of a modern universal bank focused on domestic retail and business customers, digital financial services, corporate finance, and selected investment and international activities.

1. 2025New board chairman appointed

   Noam Hanegbi was appointed chairman of the board.

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2. 2024New chief executive appointed

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

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3. 2022Arison stake sale completed

   The sale of Arison-associated shares concluded, leaving the bank without a controlling shareholder.

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4. 2020US enforcement settlement

   The bank pleaded guilty to conduct involving tax evasion assistance and FIFA-related money laundering and agreed to major financial penalties.

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5. 2015Poalim Tech launched

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

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6. 1996Privatization

   A consortium led by Ted Arison acquired the bank from the Israeli government.

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7. 1983Nationalization after the bank-stock crisis

   The Israeli government nationalized the bank during the financial crisis affecting the country’s major banks.

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8. 1963Bank Hapoalim Investment Company established

   The group established an investment company that later became known as Hapoalim Investments and invested across industrial, technology, communications, property, and other sectors.

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9. 1921Bank founded

   Histadrut and the Zionist Organisation established Bank Hapoalim to serve workers and support economic development.

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A leading full-service Israeli bank with a particularly strong retail and domestic commercial-banking franchise, complemented by capital-markets, investment-banking, technology-sector, and selected international capabilities.

• Retail bankingConsumer banking

  Bank Hapoalim serves households, private clients, foreign residents, and small businesses through branches, automated machines, telephone services, internet banking, mobile banking, and investment-consulting centers. The offering includes transaction accounts, deposits, payment services, consumer credit, mortgages, and financial guidance.

• Corporate bankingBusiness banking

  The corporate division provides lending, payments, cash management, foreign-trade support, and relationship banking for middle-market and large corporate customers. Coverage is organized through regional business centers, industry-specialized teams, business branches, and dedicated operational service centers.

• Poalim EquityInvestment banking and private investments

  Poalim Equity invests in private-company equity and debt, provides loans and growth solutions, advises on mergers and acquisitions and capital raising, and supports public offerings by Israeli or Israeli-affiliated companies. It also operates alternative-investment and fund-related activities for institutional investors.

• Poalim TechTechnology-sector banking2015

  Poalim Tech provides tailored financial services to technology companies. Its structure includes a Tel Aviv growth center for more mature firms and an early-stage center in Herzliya Pituach for startups, with additional support for US technology businesses through the bank’s American operations and partners.

• BitDigital payments

  Bit is a digital wallet and payment application associated with Bank Hapoalim’s innovation and strategy activities. It enables electronic payments and forms part of the bank’s effort to extend its reach beyond traditional branches and account-based banking channels.

• Financial markets servicesCapital markets

  The group provides securities brokerage and custody, foreign-exchange and derivatives services, research, investment advice, portfolio management, underwriting, issuance management, and support for asset managers and institutional customers in Israel and selected international markets.

• 2021Centennial Stamp

  Israel

  To mark its centenary, Bank Hapoalim worked with Israel Post and the Philatelic Service on a commemorative stamp designed by Miri Gistor. The initiative emphasized the institution’s long history in Israeli banking.

  Outcome. A commemorative stamp was issued for the bank’s 100th anniversary.

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• 2022Complete disposal of controlling shareholder’s stakeStrategy

  Arison Holdings had gradually reduced its ownership beginning in late 2018.

  What changed. The remaining Arison-associated holdings were sold, ending the group’s controlling position.

  Aftermath. Bank Hapoalim became a widely held listed bank without a controlling shareholder.

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• 2020Resolve labor dispute and restructure staffingOther

  The bank and Histadrut had been involved in a labor dispute over employment terms and workforce changes.

  What changed. The parties agreed to average wage increases for 2018–2022, a one-time employee grant, and a reduction of more than 900 positions through early retirement.

  Aftermath. The agreement ended the dispute while supporting workforce restructuring.

  One-time employee grant. NIS 210 million (2020 labor agreement)

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• 2015Create a dedicated technology-banking platformStrategy

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

  What changed. The bank established Poalim Tech with separate services for growth-stage companies and early-stage startups.

  Aftermath. Technology companies became a defined customer segment within the bank’s commercial-banking proposition.

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• 1983Accept nationalizationStrategy

  The Israeli banking system was destabilized by the bank-stock crisis.

  What changed. Bank Hapoalim was transferred into government ownership as part of the financial-sector intervention.

  Aftermath. The bank remained state-owned until its privatization in 1996.

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• 2023Criticism over profits, deposit rates, and customer serviceControversy

  Bank Hapoalim and other large Israeli banks faced criticism from regulators and customers after reporting strong profits while savers argued that deposit remuneration had not kept pace with increases in lending rates and the cost of living.

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• 2020Tax-evasion and FIFA-related money-laundering caseControversy

  Bank Hapoalim pleaded guilty in the United States to helping US taxpayers conceal assets in Swiss and Israeli accounts and to laundering bribes and kickbacks connected with corrupt FIFA officials. The case resulted in penalties and forfeitures exceeding $900 million in total.

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• 2020Settlement and investment exclusions related to Israeli settlementsControversy

  The bank was named by the United Nations in a database of companies associated with economic activity supporting Israeli settlements in occupied territories. Earlier and later actions by pension and investment institutions included blacklisting or divestment decisions citing alleged settlement-related banking and financing links.

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• 2025Noam Hanegbi appointed chairman

  Noam Hanegbi was appointed chairman of the board.

  Leadership change
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• 2024Yadin Antebi becomes chief executive officer

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

  Leadership change
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• 2023Bank Hapoalim reports strong 2023 profit amid public debate over banking spreads

  The bank reported net profit of NIS 7.36 billion for 2023, while Israeli policymakers and customers criticized major banks over deposit rates, service quality, and profitability during a period of higher interest rates and rising living costs.

  OtherRegulationPricing
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• 2022Shari Arison completes sale of Bank Hapoalim holdings

  The gradual disposal of Arison-associated holdings concluded, leaving the bank without a controlling shareholder.

  Other
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• 2020Bank Hapoalim reaches labor agreement covering pay and workforce reduction

  An agreement with the Histadrut ended a labor dispute, provided average wage increases over the 2018–2022 period, included a one-time employee grant, and supported workforce reduction through early retirement.

  Other
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1. Bank Hapoalim
2. Bank Hapoalim official website