JERUSALEM, March 7 Reuters Hapoalim, one of Israel39;s two largest banks, reported a slight rise in quarterly profit helped by lower expenses and said it was well prepared to cope with the potential effects of Israel39;s war against Palestinian Islamist group Hamas.

Hapoalim said on Thursday it earned a net 1.76 billion shekels 491.5 million in the fourth quarter, up from 1.75 billion a year earlier.

Amid easing inflation, net interest income dipped to 3.75 billion shekels from 3.93 billion. Its credit loss provision increased to 453 million shekels from 430 million.

The war began on Oct. 7, at the outset of the fourth quarter.

For all of 2023, Hapoalim39;s profit rose to 7.36 billion shekels, from 6.53 billion in 2022.

The events of October 7th found Bank Hapoalim highly prepared, in terms of its responsible growth, diversified

credit portfolio, and strong financial robustness parameters, said CEO Dov Kotler.

Hapoalim said it would pay a quarterly dividend of 352 million shekels, or 20 of net profit in line with the regulator39;s directive to hold back on large payouts during the war.

The board of directors of the bank, in its decision, noted the ability of the bank to potentially declare a higher

dividend, in light of the bank39;s significant capital surpluses and robust financial position, said Hapoalim, the first of Israeli banks to report quarterly earnings.

Its Tier 1 capital ratio rose by 77 basis points in 2023 to 12.02, above the 10.23 minimum…