...VR and Support Drive IDRs: Bank Hapoalim B.M.'s Issuer Default Ratings (IDRs) are driven by its Viability Rating (VR) and underpinned by Fitch Ratings' view of a very high probability that Israel (A/Negative/F1+) would provide support to the bank, if needed. Fitch believes Israel's ability and propensity to support Hapoalim is very high, particularly given the bank's systemic importance in the country, holding about 30% of banking system assets. Diversified Business Model: Hapoalim's VR reflects its strong franchise in retail and corporate banking in Israel. Asset quality and earnings have been resilient, despite the macroeconomic effects of the war in Gaza, and we expect them to remain so, given prudent underwriting and a multi-year focus on improving efficiency. The VR also reflects the bank's sound funding, given its diversified and granular deposit base, and adequate capitalisation. Close Regulatory Oversight: Hapoalim's underwriting standards are conservative, helped by prudent regulatory...
