The Koor concern, in which Bank Hapoalim holds 19% of capital shares, "contributed" NIS 17 million in losses to the bank's bottom line in Q1, a huge improvement over the NIS 116 million loss Koor handed Bank Hapalim in Q1 2001.
Koor lost NIS 491 million in the first quarter of the year, NIS 383 million of which was an accounting loss on the currency translation differences for Tadiran, which were transferred from a capital fund to equity in this quarter. The bank noted that as more than 95% of the capital fund was created before the bank's investment in the concern, the accounting move had no material impact on the bank's share in the concern's loss.
This accounts for the small, NIS 17 million, share in the NIS 491 million loss, in contrast to Q1 2001, when the bank posted NIS 116 million of the concern's NIS 956 million loss.
The bank's investment is recorded on its books at NIS 416 million, reflecting a valuation of NIS 2.2 billion for the concern, 5% above its current market cap.