Best bank - Bank Hapoalim
Best local partner - Leader Holdings & Investment
Best debt house - Citigroup
Best equity house - UBS
Best M&A house - Citigroup
Israel's banks continue to suffer from the country's poor economic climate and the continuing Palestinian intifada. Bank Hapoalim, once again the winner of the best bank in Israel award, continues to tackle industry-wide bad-loan problems by provisioning and cutting costs more aggressively than its competitors. Bank Leumi, its arch-rival, has been more reluctant to bite the bullet, leaving Hapoalim with a bit more room for flexibility.
Hapoalim and Leumi together control between 60% and 70% of the market and are otherwise quite similar. Hapoalim's aggressive provisioning, described as "everything including the kitchen sink" by analysts, did not do much good for its former CEO, Eli Yones, however. He was ousted in April by shareholders who disagreed with the strategy.
Leader Holdings & Investment is one of the most active and highly regarded investment banks in Israel and the choice for best local partner. Part of Shrem, Fudim, Kelner & Co, Leader's brokerage and investment banking units led many of Israel's biggest IPOs and privatizations, including those of Bank Hapoalim, Bank Leumi, Discount Bank of Israel and Bezeq.