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Bank Hapoalim sets aside further $75M for US tax probe settlement

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Bank Hapoalim sets aside further $75M for US tax probe settlement

Bank Hapoalim BM will set aside a further $75 million in provisions to settle a U.S. investigation into allegations that it helped Americans evade taxes.

The amount takes the Israeli lender's total provisions for the probe to $343 million, the bank said Feb. 28.

The bank said it expects its overall exposure to be higher than the amount of the provision that will be booked in its 2017 financial results, and it noted that the latest provision amount could still change by the time it publishes results March 26. It added that it expects any payments to U.S. authorities to be "significantly higher than the amount of the provision."

Bank Hapoalim said it bulked up its provisioning after determining that more of its clients may be relevant to the probe by the U.S. Department of Justice.

In 2014, fellow Israeli lender Bank Leumi le-Israel BM paid $400 million in fines to settle a similar U.S. tax evasion case.