Why did Vectorial Data pick BKHYY?

BKHYY at $119.33 is buying Israel's largest and most profitable bank — cheap, highly profitable and with a fat dividend — betting on the resilience of the Israeli economy. Specific reasons: (1) Sky-high profitability: a 13% ROE is among the best in the world for a bank; it means that for every $100 of capital, it generates $13 of profit a year. (2) Record earnings: in 2025 it earned ~9,800 million shekels, +30% in a year — and Q1 2026 confirmed the pace (~2,124 million). (3) It trades cheap: at just ~9.5 times earnings — a bargain multiple versus US or European banks, which trade more expensively. (4) It pays you a lot: a ~4.4% dividend PLUS share buybacks — it returns much of the profit to owners. (5) Almost a duopoly: together with Bank Leumi it dominates Israeli banking; it's a hard business to attack (a new bank isn't built overnight). (6) A bet on Israel: if you believe in the resilience and dynamism of the 'startup nation', its largest bank is the most direct way to own it — and it pays you income while you wait. Note: today we also bought the Israel ETF (EIS), which holds this bank inside it.

What are the risks of investing in BKHYY?

Risks: (1) Geopolitical risk — #1: Israel sits in a conflict region; a war or escalation (Iran, Gaza, Lebanon) can hit the Israeli economy, spike loan defaults and punish the bank all at once. It's the risk that defines this stock. (2) Currency risk (the shekel): the bank earns in shekels but the ADR trades in dollars; if the shekel weakens, you lose in dollars even if the bank does well. (3) Illiquid ADR (OTC): BKHYY trades thinly and 'over-the-counter', not on a major exchange — the price can move in jumps and the bid/ask spread is wider. (4) Interest-rate sensitivity: much of its profit comes from the interest margin; if Israel's central bank cuts rates sharply, that margin compresses. (5) Single-country concentration: nearly all its business is in Israel — if the Israeli economy slows, it has nowhere to diversify. (6) Regulatory risk: banks are heavily regulated; changes in capital requirements, fee caps or special bank taxes can cut into profit.

Does BKHYY pay dividends?

Yes. Bank Hapoalim B.M. pays a dividend of about 4.4% per year.

How can I buy BKHYY with little money?

You can buy fractional shares of BKHYY starting from a few dollars with any broker that offers fractional shares. The Vectorial Data method: invest the same amount in every pick, every time.

When was this BKHYY analysis last updated?

The BKHYY analysis was last updated on Invalid Date.

Stocks/BKHYY

BKHYY — Bank Hapoalim B.M.

Q: What does Bank Hapoalim B.M. do?

Bank Hapoalim B.M. (OTC: BKHYY; Tel Aviv: POLI) is Israel's largest bank by assets, headquartered in Tel Aviv. It's one of the two pillars of the Israeli banking system (the other is Bank Leumi). How it makes money: it's traditional banking. It takes deposits from the public, lends that money to families (mortgages, consumer credit) and businesses, offers cards, wealth management and investment banking, and earns mostly from the interest margin — the difference between what it charges to lend and what it pays on deposits — plus fees. Why it matters: it's Israel's financial backbone — when the Israeli economy grows, the bank grows with it. Recent results: 2025: record net income of ~9,800 million shekels (+30%). Q1 2026: net income ~2,124 million shekels, with a ROE (return on equity) of 13.0% — very high for a bank; it distributed ~850 million shekels in dividend (NIS 0.65/share) plus ~212 million in buybacks. Leadership: CEO Yadin Antebi (since August 15, 2024). How we buy it: through its ADR (BKHYY) — a receipt that trades in dollars on the US OTC market and represents the shares listed in Tel Aviv. It's illiquid: it trades thinly and the price can move in jumps.

FinancialsMiddle EastIsraelBlockchain certified

$119.33

Target: $ (%)

P/E Ratio

9.5

P/E Forward

—

Dividend

4.4%

Market Cap

$30.3B

EPS

$12.16

Consensus

Cobertura analista limitada (ADR OTC) — sin precio objetivo en USD

What they do

Bank Hapoalim B.M. (OTC: BKHYY; Tel Aviv: POLI) is Israel's largest bank by assets, headquartered in Tel Aviv. It's one of the two pillars of the Israeli banking system (the other is Bank Leumi).

How it makes money: it's traditional banking. It takes deposits from the public, lends that money to families (mortgages, consumer credit) and businesses, offers cards, wealth management and investment banking, and earns mostly from the interest margin — the difference between what it charges to lend and what it pays on deposits — plus fees.

Why it matters: it's Israel's financial backbone — when the Israeli economy grows, the bank grows with it.

Recent results:

2025: record net income of ~9,800 million shekels (+30%).
Q1 2026: net income ~2,124 million shekels, with a ROE (return on equity) of 13.0% — very high for a bank; it distributed ~850 million shekels in dividend (NIS 0.65/share) plus ~212 million in buybacks.

Leadership: CEO Yadin Antebi (since August 15, 2024).

How we buy it: through its ADR (BKHYY) — a receipt that trades in dollars on the US OTC market and represents the shares listed in Tel Aviv. It's illiquid: it trades thinly and the price can move in jumps.

Why we like it

BKHYY at $119.33 is buying Israel's largest and most profitable bank — cheap, highly profitable and with a fat dividend — betting on the resilience of the Israeli economy. Specific reasons:

Sky-high profitability: a 13% ROE is among the best in the world for a bank; it means that for every $100 of capital, it generates $13 of profit a year.
Record earnings: in 2025 it earned ~9,800 million shekels, +30% in a year — and Q1 2026 confirmed the pace (~2,124 million).
It trades cheap: at just ~9.5 times earnings — a bargain multiple versus US or European banks, which trade more expensively.
It pays you a lot: a ~4.4% dividend PLUS share buybacks — it returns much of the profit to owners.
Almost a duopoly: together with Bank Leumi it dominates Israeli banking; it's a hard business to attack (a new bank isn't built overnight).
A bet on Israel: if you believe in the resilience and dynamism of the 'startup nation', its largest bank is the most direct way to own it — and it pays you income while you wait. Note: today we also bought the Israel ETF (EIS), which holds this bank inside it.

Key Risk

Risks:

Geopolitical risk — #1: Israel sits in a conflict region; a war or escalation (Iran, Gaza, Lebanon) can hit the Israeli economy, spike loan defaults and punish the bank all at once. It's the risk that defines this stock.
Currency risk (the shekel): the bank earns in shekels but the ADR trades in dollars; if the shekel weakens, you lose in dollars even if the bank does well.
Illiquid ADR (OTC): BKHYY trades thinly and 'over-the-counter', not on a major exchange — the price can move in jumps and the bid/ask spread is wider.
Interest-rate sensitivity: much of its profit comes from the interest margin; if Israel's central bank cuts rates sharply, that margin compresses.
Single-country concentration: nearly all its business is in Israel — if the Israeli economy slows, it has nowhere to diversify.
Regulatory risk: banks are heavily regulated; changes in capital requirements, fee caps or special bank taxes can cut into profit.

This is educational and informational content, not financial advice. Always consult a qualified financial advisor before making investment decisions.

Vectorial Data picked BKHYY on 2026-06-16 at $119.33.

Last updated: Invalid Date

Dividends received by the Vectorial portfolio

BKHYY has not paid a dividend to the portfolio yet.

Full Research

Bank Hapoalim (BKHYY) — Research Completo

Precio: $119.33 | P/E TTM: ~9.5x | Div Yield: ~4.4% | Market Cap: ~$30.3B USD

¿Qué es Bank Hapoalim?

El banco más grande de Israel por activos. OTC: BKHYY (ADR) · Tel Aviv: POLI. HQ Tel Aviv. Uno de los dos pilares de la banca israelí (con Bank Leumi).

Cómo gana dinero

Banca tradicional: recibe depósitos, presta a hogares y empresas (hipotecas, consumo, corporativo), tarjetas, gestión de patrimonio y banca de inversión. Gana del margen de interés + comisiones.

Resultados

Métrica	Valor
Utilidad neta 2025	~NIS 9,800 millones (+30%, récord)
Utilidad neta Q1 2026	~NIS 2,124 millones
ROE Q1 2026	13.0%
Dividendo Q1 2026	NIS 850M (NIS 0.65/acción) + NIS 212M recompras

Valuación e ingreso

P/E ~9.5x — barato frente a bancos de EE.UU./Europa.
Dividendo ~4.4% + recompras de acciones.
EPS (TTM) ~$12.2 por ADR.

Liderazgo

CEO: Yadin Antebi (desde 15-ago-2024).

Cómo lo compramos

Vía ADR (BKHYY) en el mercado OTC de EE.UU. (cotiza en dólares).
Poco líquido: se negocia poco, el precio puede moverse a saltos.

Anchor Fact

Bank Hapoalim es el banco más grande de Israel y uno de los más rentables del mundo: en 2025 ganó un récord de ~9,800 millones de shekels (+30%) y arrancó 2026 con un ROE de 13% —por cada $100 de capital, genera $13 al año—. Pese a eso, cotiza a solo ~9.5 veces sus ganancias y te paga ~4.4% de dividendo más recompras. Es el banco que sostiene la economía de la 'nación startup', comprado barato.

Top Risks

Geopolítico — guerra/escalada regional golpea economía y morosidad
Moneda (shekel) — gana en shekels, ADR en dólares
ADR poco líquido (OTC) — precio a saltos, spread amplio
Tasas de interés — recortes comprimen el margen
Concentración en Israel — sin diversificación geográfica
Regulatorio — capital, comisiones, impuestos a la banca

Tesis en una línea

El banco más grande y rentable de Israel (ROE 13%, ganancia récord en 2025), comprado barato (~9.5x) y con un dividendo de ~4.4% más recompras —una apuesta directa y con renta a la resiliencia de la economía israelí—.

Research fecha: 16 Jun 2026 | Próxima revisión: Dic 2026

Esto no es asesoría financiera.

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Researched: 6/16/2026Updated: 6/16/2026Next review: 12/16/2026

This is not financial advice. Consult a certified financial advisor.

The author may hold positions in the securities discussed.

Past performance does not guarantee future results.