Bank Hapoalim (TASE: POLI; LSE:80OA) is considering expanding its activity in Switzerland by acquiring another local bank, and has allocated $500 million for this purpose. Bank Hapoalim wants a bank that specializes in private banking.
Bank Hapoalim wants to exploit the global banking crisis and falling bank prices to expand its current Swiss banking business by absorbing an acquired bank. It has already conducted a preliminary survey of possible acquisition targets.
Bank Hapoalim founded Bank Hapoalim Switzerland, which specializes in private banking, in 1975. It has branches in Zurich, Geneva, Luxembourg, and two years ago opened a branch in Singapore. It also has representative offices in Tel Aviv, Moscow, and Hong Kong.
In January 2006, Bank Hapoalim Switzerland absorbed Bank of New York Inter Maritime Geneva, which Bank Hapoalim had acquired.
Bank Hapoalim Switzerland posted a profit of CHF 32 million in 2007 and a profit of CHF 5 million in January-September 2008. Its shareholders' equity is CHF 200 million.
Bank Hapoalim has reformulated its international expansion strategy. Instead of entering new countries in the coming year, the bank will expand and deepen its presence in countries were it already operates, with an emphasis on international private banking. The target countries include the US, UK, Switzerland, and Turkey.
Published by Globes [online], Israel business news - www.globes-online.com - on February 18, 2009
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