Bank Hapoalim announced a 48% increase in quarterly net profit as higher interest rates increased financing income.

One of Israel’s two biggest institutions, Hapoalim, reported third-quarter earnings of net 1.79 billion shekels ($518 million), down from a profit of 1.21 billion shekels in the same period last year.

Helped by aggressive Bank of Israel rate hikes to fight inflation, net interest income rose 42% to 3.64 billion shekels. Its provision for credit losses was 45 million shekels compared with income from the provision of 252 million shekels last year.

Hapoalim said it would pay a dividend of 536 million shekels, or 30% of third quarter net profit, after resuming ongoing dividends in the second quarter.