BANK LEUMI LE ISRAEL BM TEL AVIV, Israel, Aug 15, 2017 /PRNewswire/ --
-- Net income in the first half of 2017 totaled NIS 1,498 million ($429
million), while net income in the second quarter of 2017 totaled NIS
876 million ($251 million). The increase in profitability is reflected
in most core business activities.
-- Net income in the first half of 2017 reflects a return on equity of
9.6%. Net income in the corresponding period last year included one-time
profits mainly from the sale of Visa Europe. When excluding these
profits, the return on equity in the corresponding period last year
reached 8.4%.
-- A significant improvement in the efficiency ratio - 62.2% in the first
half of 2017, compared with 69.4% in the corresponding period last year.
The efficiency ratio in the second quarter of 2017 was 59.7%, compared
with 65.9% in the corresponding period last year.
-- Leumi (TASE: LUMI) continues to maintain the highest quality loan
portfolio in the banking system in Israel - credit loss expenses in the
first half of 2017 reflected 0.11% of the bank's portfolio, while credit
loss expenses in the second quarter of 2017 reflected 0.06% of the
portfolio.
-- Common equity tier I capital ratio in the first half of 2017reached
11.21%, while the total capital ratio reached 14.99%.
-- The Bank will distribute a dividend of NIS 175 million ($50 million)
based on second quarter earnings. From the beginning of 2017 dividend
payments totaled NIS 300 million ($86 million).
-- Net interest income in the first half of 2017 increased by 9.5% compared
with the corresponding period last year. Net interest income in the
second quarter of 2017 increased by 6.4% compared with the corresponding
period last year.
-- Noninterest financing income in the first half of 2017 totaled NIS 452
million ($129 million), compared with NIS 558 million ($160 million) in
the corresponding period last year. Income in the corresponding period
last year included NIS 378 million ($108 million) from the sale of Visa
Europe. When excluding this one-time profit, the noninterest financing
income increased by NIS 272 million ($78 million) compared with the
corresponding period last year.
-- Total operating expenses in the first half of 2017 decreased by 6.3%
compared with the corresponding period last year. Total operating
expenses in the second quarter of 2017 decreased by 14.2% compared with
the corresponding period last year. The decrease is mainly in salary
expenses.
In Accordance with the Bank's Strategy:
-- Leumi continues to lead the digital banking field in Israel. During the
second quarter of 2017 'Pepper' was officially launched to the general
public.
-- Continued implementation of efficiency - during the second quarter of
2017 the Bank initiated an additional voluntary early retirement plan
for some 500 employees. This plan follows a reduction of some 2,200
employees in the Group's workforce in the past 4 years.
-- The Bank continues to selectively grow its loan portfolio, while
maintaining a balanced risk management policy. Net loans to the public
in the first half of 2017 increased by NIS 2.6 billion ($744 million)
compared with the corresponding period last year. Excluding the effect
of the shekel appreciation, the increase in loans was approximately NIS
5.5 billion ($1,573 million).
Balance Sheet Parameters:
-- The Group's total shareholders' equity as of June 30, 2017 amounted to
NIS 32.5 billion ($9.3 billion), compared with NIS 31.3 billion ($9.0
billion) as of December 31, 2016 (an increase of 3.7%).
-- The leverage ratio as of June 30, 2017 reached 6.93%, compared to the
Bank of Israel minimal threshold of 6%.
-- Net loans to the public as of June 30, 2017 amounted to NIS 264.5
billion ($75.7 billion), compared with NIS 261.9 billion ($74.9 billion)
as of December 31, 2016.
-- Deposits from the public as of June 30, 2017 amounted to NIS 342.8
billion ($98.1 billion), compared with NIS 346.8 billion ($99.2 billion)
as of December 31, 2016. The decrease is mainly due to the appreciation
of the shekel compared to foreign currencies.
Conference Call Details:
A conference call to discuss the results will be held today at 5 PM (Israel); 3 PM (UK); 10:00 AM (ET). The call will be accompanied by a slide presentation which will be available at Leumi Q2 2017 Financial Results Investor Presentation.
It is recommended to connect to the link at least 10 minutes prior to the beginning of the call. An archived recording will be available on the Leumi website one business day after the call ends.
Conference Call Dial-in Details (no passcode required):
Israel 03-918-0664
UK 0-800-917-9141
US & Canada 1-866-652-8972
All other locations +972-3-918-0664
For more information, visit www.leumi.co.il or contact Daphna Golden, VP, Head of Investor Relations, at Daphna.Golden@bankleumi.co.il
The conference call does not replace the latest periodic/quarterly reports in which full information is contained, including forward-looking information, as defined in the Israeli Securities Law, and set out in the aforementioned reports.
Leumi Group - Principal Data from the Financial Statements
Profit and Profitability (NIS millions)
--------------------------------------
For the six months For the year
ended
ended June 30 December 31
------------- -----------
2017 2016 Change in 2016
%
--- ---
Net interest income 4,038 3,689 9.5 7,526
------------------- ----- ----- --- -----
Credit loss expenses (income) 143 (277) + (125)
---------------------------- --- ---- --- ----
Net interest income after credit loss
expenses 3,895 3,966 (1.8) 7,651
------------------------------------- ----- ----- ---- -----
Noninterest income 2,507 2,570 (2.5) 5,408
------------------ ----- ----- ---- -----
Operating and other expenses 4,070 4,345 (6.3) 8,580
---------------------------- ----- ----- ---- -----
Net income due to shareholders of the Bank 1,498 1,429 4.8 2,791
------------------------------------------ ----- ----- --- -----
Development of Balance Sheet Items (NIS millions)
------------------------------------------------
June 30 December 31 Change in %
2017 2016
---- ----
Net loans to the public 264,484 261,913 1.0
----------------------- ------- ------- ---
Total assets 436,967 438,603 (0.4)
------------ ------- ------- ----
Deposits from the public 342,766 346,854 (1.2)
------------------------ ------- ------- ----
Shareholders' equity 32,521 31,347 3.7
-------------------- ------ ------ ---
Assets under management of the Group 1,337,064 1,262,415 5.9
------------------------------------ --------- --------- ---
Principal Financial Ratios (%)
-----------------------------
June 30 December 31
------- -----------
2017 2016 2016
---- ---- ----
Net
loans
to
the
public
to
total
balance
sheet 60.5 61.0 59.7
------- ---- ---- ----
Deposits
from
the
public
to
total
balance
sheet 78.4 77.9 79.1
-------- ---- ---- ----
Deposits
from
the
public
to
net
loans
to
the
public 129.6 127.8 132.4
-------- ----- ----- -----
Total
equity
to
risk-
weighted
assets 14.99 14.68 15.21
-------- ----- ----- -----
Common
equity
tier
1
capital
to
risk-
weighted
assets 11.21 10.40 11.15
-------- ----- ----- -----
Leverage
ratio 6.93 6.51 6.77
-------- ---- ---- ----
Liquidity
coverage
ratio 127 127 132
--------- --- --- ---
Expenses
for
credit
losses
to
net
loans
to
the
public 0.11 (0.21) (0.05)
-------- ---- ----- -----
Of
which: public
expenses
for
collective
allowance
to
net
loans
to
the 0.16 0.19 0.24
----------- ---- ---- ----
Interest
spread 1.84 1.77 1.75
-------- ---- ---- ----
Operating
and
other
expenses
to
total
income 62.2 69.4 66.3
--------- ---- ---- ----
The data in this press release has been converted into US dollars solely
for convenience, at the representative rate of exchange published by the
Bank of Israel prevailing on June 30, 2017, NIS 3.496.
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SOURCE Bank Leumi
