Bank Hapoalim warns on profits due to U.S. tax probe
- Wall St. edges higher as earnings gather pace
- Alibaba (BABA) Tops Q3 EPS by 17c, Revenues Rise 54%
- DuPont (DD) Tops Q4 EPS by 9c; Sees Merger Closing in First Half
- Johnson & Johnson (JNJ) Tops Q4 EPS by 2c; Guides Modestly Below the Street
- Pre-Open Stock Movers 01/24: (MPSX) (IIVI) (AKS) Higher; (FSM) (OCUL) (VZ) Lower (more...)
The logo of Bank Hapoalim, Israel's biggest bank, is seen at their main branch in Tel Aviv, Israel July 18, 2016. REUTERS/Amir Cohen/File Photo
News and research before you hear about it on CNBC and others. Claim your 2-week free trial to StreetInsider Premium here.
TEL AVIV (Reuters) - Bank Hapoalim
The $70 million would be in addition to $50 million Hapoalim has already set aside for this matter, in which U.S. authorities are investigating whether it helped American clients evade U.S. taxes at its Swiss unit.
The provision follows a meeting Hapoalim representatives had with members of the U.S. Department of Justice (DOJ) on Sept. 30 regarding a possible settlement between the two sides.
The bank said the provision did not relate to a separate investigation being carried out by the New York Department of Financial Services.
Hapoalim has denied the allegations.
Its main domestic rival Leumi
Barclays analyst Tavy Rosner said the final amount Hapoalim might have to pay to the DOJ could be significantly higher.
Noting that this announcement could weigh on Hapoalim's share price, Rosner said that assuming the $70 million provision is not tax-deductable, his quarterly net profit estimate would need to be revised down to 629 million shekels ($167 million).
The U.S. investigations have weighed on Hapoalim's shares and are the main justification for Barclays' "underweight" rating, Rosner said.
"Today’s announcement shows that the bank is now having face-to-face conversations with the U.S. authorities, which could pave the way for a settlement in the coming months, in our view," he said.
(Reporting by Tova Cohen and Steven Scheer; Editing by Greg Mahlich)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Barclays Downgrades Apple (AAPL) to Equalweight, Concerned India/China Will not Emerge As Growth Catalysts
- BlackRock to ask if companies spend cash from tax holiday on growth
- U.S. appeals court won't reconsider Microsoft email seizure ruling
Create E-mail Alert Related CategoriesReuters
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!