Israeli Bank Posts Q1 Losses After On-going US Tax Investigation

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Israel’s largest lender Bank Hapoalim have reported a drop in Q1 revenue due to an ongoing US tax investigation. The bank has had to save USD $17 million to cover a probable future settlement in the US probe, bringing its total provisions to USD $365 million.

Hapoalim have large legal costs from cases throughout 2017 and said talks were ongoing and could not give a timetable for a resolution, although it is hoping for a conclusion in the current financial year. The bank said the increase in credit loss expenses was a result of the 5% rise in corporate lending.