ISRAEL DISCOUNT BANK LTD 15.05.2017
Israel Discount Bank Announces Financial Results for 1st Quarter of 2017Net Income - NIS 303 m, ROE - 8.6%, Cost-Income Ratio -- 68.8%
Adjusted Net Income - NIS 309 m, ROE - 8.8%, Cost-Income Ratio - 68.4%Main highlights of Q1-17 results:
Growth
› Credit growth of 10.9% YoY (1.9% QoQ)
› Total income growth of 13.6% YoY (3.8% QoQ)
Cost
› Total expenses increased by 1.1% YoY (declined by 1.8% QoQ)
› Salary costs stayed flat YoY (declined by 0.8% QoQ)
› CET-1 of 9.7%
Infrastructure › Liquidity Coverage Ratio of 150.8%, Leverage Ratio of 6.6%
› Improvement in main asset quality indicators
Subsidiaries › Solid performance of subsidiaries
Conference Call and WEBEX Details
To join the online presentation, please click on the following URL: https://idbank.webex.com/idbank/onstage/g.php?MTID=e94a97586245842f7a682890ad1a6367e
To join the conference call, please dial:
1809216057
+44 (0) 1452 555566
18669669439
08006940257
Israel:
International:
USA:
UK:
Conference ID: 18395483
Main metrics from the Balance Sheet:
-
Total credit to the public (gross) increased by 10.9% YoY (1.9% QoQ) to NIS 145.5 billion, due to growth in all targeted segments:
Consumer credit grew by 10.6% YoY, 3.0% QoQ
SME credit grew by 11.4% YoY, 5.1% QoQ
Mortgages grew by 21.7% YoY, 3.0% QoQ
- Deposits grew by 6.2% YoY (decreased by 0.4% QoQ) to NIS 171.6 billion.
-
Total equity grew by 11.4% YoY (1.7% QoQ) to NIS 15.2 billion, while RWA increased by 7.6% YoY to NIS 155.9 billion. Common equity tier 1 ratio stands at a level of 9.7%.
Main metrics from the Statement of Income:
Despite the low interest rate environment, net interest income for Q1-17 increased by 11.2% YoY to NIS 1,167 m, as a result of a positive quantitative impact of NIS 83 m and a positive price impact of NIS 35 m.
- Credit loss expenses amounted to NIS 145 m, constituting a quarterly rate of 0.4% of the average balance of credit to the public, compared to NIS 224 m (0.66%) in the previous quarter and NIS 46 m (0.14%) in the corresponding quarter. Q1-17 credit loss expenses were impacted mainly by write-offs.
- Non-interest income for Q1-17 increased by 16.8% YoY to NIS 913 m and by 8.9% compared to the previous quarter, mainly due to an increase in non-interest financing income. Non-interest financing income increased by 134.4% compared to Q1-16 and by 25.7% compared to Q4-16 to NIS 225 m due to a NIS 75 m income resulted from a realization of investments made by Discount Capital. Commissions increased by 6.7% YoY and by 2.0% QoQ, due to an increase in credit cards, securities and derivatives commissions.
- Q1-17 total operating & other expenses increased by 1.1% to NIS 1,432 m compared to Q1-16. Excluding a NIS 9 m provision, expenses increased by 0.4%. The provision is due to actuarial changes related to retirement.
-
Total credit to the public (gross) increased by 10.9% YoY (1.9% QoQ) to NIS 145.5 billion, due to growth in all targeted segments:
Developments in certain income statement items in the first quarter of 2017, compared with the fourth quarter of 2016 and compared with the first quarter of 2016
% Change Q1-17
2017 | 2016 | compared to | ||
In NIS millions | Q1 | Q4 | Q1 | Q4-16 Q1-16 |
Interest income | 1,440 | ⁽²⁾1,428 | ⁽²⁾1,218 | 0.8 | 18.2 |
Interest expenses | 273 | 262 | 169 | 4.2 | 61.5 |
Interest income, net | 1,167 | 1,166 | 1,049 | 0.1 | 11.2 |
Credit loss expenses | 145 | 224 | 46 | (35.3) | 215.2 |
Net interest income after credit loss expenses | 1,022 | 942 | 1,003 | 8.5 | 1.9 |
Non-interest Income | |||||
Non-interest financing income | 225 | 179 | 96 | 25.7 | 134.4 |
Commissions | 666 | 653 | 624 | 2.0 | 6.7 |
Other income | 22 | 6 | 62 | 266.7 | (64.5) |
Total non-interest income | 913 | 838 | 782 | 8.9 | 16.8 |
Operating and other Expenses | |||||
Salaries and related expenses | 859 | 866 | 859 | (0.8) | - |
Maintenance and depreciation of buildings and equipment | 264 | 254 | 273 | 3.9 | (3.3) |
Other expenses | 309 | 338 | 285 | (8.6) | 8.4 |
Total operating and other expenses | 1,432 | 1,458 | 1,417 | (1.8) | 1.1 |
Profit before taxes | 503 | 322 | 368 | 56.2 | 36.7 |
Provision for taxes on profit | 182 | ⁽²⁾168 | ⁽²⁾175 | 8.3 | 4.0 |
Profit after taxes | 321 | 154 | 193 | 108.4 | 66.3 |
Bank's share in profit (loss)of affiliated companies, net of tax effect | (4) | 3 | (1) | - | 300.0 |
Net profit attributed to the non-controlling rights holders in consolidated companies | (14) | (12) | (13) | 16.7 | 7.7 |
Net Profit attributed to Bank's shareholders | 303 | 145 | 179 | 109.0 | 69.3 |
Net return on equity attributed to the Bank's shareholders, in %⁽¹⁾ | 8.6 | 4.1 | 5.5 | ||
Net Profit attributed to Bank's shareholders - excluding certain components | 309 | 284 | 229 | 8.8 | 34.9 |
Net return on equity attributed to the Bank's shareholders, in %⁽¹⁾ - excluding certain components | 8.8 | 8.2 | 7.1 | ||
Footnote: | |
(1) | On an annual basis. |
(2) | Reclassified, see Note 1 G (1) to the condensed financial statements. |
Balance sheet
In NIS millions
March 31,
2017
March 31,
2016
December 31,
2016 Change in % compared to
March 31,
2016
December 31,
2016
Total assets | 219,096 | 207,200 | 219,577 | 5.7 | (0.2) |
Credit to the public, net | 143,459 | 129,203 | 140,760 | 11.0 | 1.9 |
Securities | 36,187 | 38,064 | 38,818 | (4.9) | (6.8) |
Deposits from the public | 171,642 | ⁽¹⁾161,633 | 172,318 | 6.2 | (0.4) |
Equity attributed to the Bank's shareholders | 14,754 | 13,270 | 14,512 | 11.2 | 1.7 |
Total equity | 15,185 | 13,627 | 14,936 | 11.4 | 1.7 |
Footnote:
(1) Reclassified - see Note 1 G (2) to the condensed financial statements.
Review of developments in the balance of net credit to the public, by regulatory operating segments
In NIS millions | March 31, 2017 | December 31 , 2016 | Change in % |
Domestic operations: | |||
Households* | 53,048 | 51,488 | 3.0 |
Private banking* | 209 | 214 | (2.3) |
Small and minute businesses | 35,970 | 34,219 | 5.1 |
Medium businesses | 12,436 | 12,398 | 0.3 |
Large businesses | 21,921 | 21,438 | 2.3 |
Institutional bodies | 1,007 | 1,047 | (3.8) |
Total Domestic operations | 124,591 | 120,804 | 3.1 |
Total International operations | 20,957 | 22,100 | (5.2) |
Total credit to the public | 145,548 | 142,904 | 1.9 |
Credit loss expenses | (2,089) | (2,144) | (2.6) |
Total credit to the public, net | 143,459 | 140,760 | 1.9 |
*Of which - Mortgages | 26,547 | 25,764 | 3.0 |
Israel Discount Bank Limited published this content on 15 May 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 15 May 2017 12:42:20 UTC.
Original documenthttps://investors.discountbank.co.il/sites/investors.discountbank.co.il/files/IR_Media/Results_Center/2017/PR/PR Q1-17 FINAL.pdf
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