First International Bank of Israel Reports Financial Results for the Second Quarter of 2024
Reflects continued growth and high profitability while maintaining financial stability
Financial Highlights
- Second quarter of 2024 net income of NIS 609 million and return on equity of 19.6%
- First half 2024 net income of NIS 1,178 million and return on equity of 19.2%
- Credit to the public increased 4.5% compared to end of the first quarter of 2024 and 2.4% compared to 2023-end
- First half 2024 income from credit losses of approximately
NIS 73 million , compared to expenses ofNIS 171 million in the first half of 2023 with approximately half of the income from collections from previously written-off customer debt - Deposit to the public increased by 3.8% compared to the first quarter of 2024, and by 6.8% compared to the 2023-end.
- The portfolio of customers' assets increased 4.8% compared to the first quarter of 2024, and by 12.4% compared to the 2023-end, to approximately
NIS 755 billion . - Equity attributed to shareholders of the Bank increased by 11.7% to NIS 12.6 billion, compared to the end of the first half of 2023
- Tier 1 capital ratio was 11.34%
- The Bank's Board of Directors decided to distribute a dividend amounting to 40% of the net income for the quarter
Financial Results of the Second Quarter 2024
Net income for the
Revenues were
Income from credit losses amounted to
The high-quality credit to non-performing loans ratio (NPL) was stable and was 0.59% at the end of the second quarter. The ratio indicates the quality of the credit portfolio (the balance of the non-accrual loans or those that are in arrears of 90 days or more) as a percentage of total credit to the public. The total coverage ratio (the percentage of the total allowance for credit losses to the total amount of the credit to the public) was 1.44%, compared to 1.23% as of the end of the first half of last year.
Operating and other expenses were stable at
Credit to the public was approximately
Deposits by the public were approximately
The total customers' assets portfolio increased by 4.8% compared to the first quarter of 2024 and by 12.4% compared to the 2023-end, amounting to approximately
Equity attributed to the Bank's shareholders increased to approximately
Taking into consideration the Supervisor of the Bank's directives with regard to capital planning and profit distribution policies, the Board of Directors decided to approve the distribution of a cash dividend to the shareholders at a rate of 40% of net income. The Board of Directors will continue to discuss the implementation of the Bank's dividend distribution policy, in light of the developments and their impact on the economy and on the Bank.
Management Comment
"We at the
The
The
CONDENSED PRINCIPAL FINANCIAL INFORMATION AND PRINCIPAL EXECUTION INDICES |
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Principal financial ratios |
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For the six months |
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For the year |
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2024 |
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2023 |
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2023 |
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in % |
Principal execution indices |
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Return on equity attributed to shareholders of the Bank(1) |
19.2 |
22.6 |
19.7 |
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Return on average assets(1) |
1.05 |
1.22 |
1.06 |
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Ratio of equity capital tier 1 |
11.34 |
10.64 |
11.35 |
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Leverage ratio |
5.20 |
5.20 |
5.26 |
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Liquidity coverage ratio |
172 |
134 |
156 |
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Net stable funding ratio |
149 |
134 |
146 |
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Ratio of total income to average assets (1) |
2.9 |
3.4 |
3.2 |
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Ratio of interest income, net to average assets (1) |
2.1 |
2.6 |
2.4 |
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Ratio of fees to average assets (1) |
0.6 |
0.8 |
0.7 |
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Efficiency ratio |
45.4 |
42.6 |
43.5 |
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Credit quality indices |
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Ratio of provision for credit losses to credit to the public |
1.32 |
1.12 |
1.36 |
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Ratio of total provision for credit losses (2) to credit to the public |
1.44 |
1.23 |
1.50 |
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Ratio of non-accruing debts or in arrears of 90 days or more to credit to the public |
0.59 |
0.49 |
0.60 |
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Ratio of provision for credit losses to total non-accruing credit to the public |
230.4 |
237.9 |
234.5 |
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Ratio of net write-offs to average total credit to the public (1) |
(0.08) |
- |
0.03 |
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Ratio of expenses (income) for credit losses to average total credit to the public (1) |
(0.12) |
0.29 |
0.42 |
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Principal data from the statement of income |
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For the six months |
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2024 |
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2023 |
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NIS million |
Net profit attributed to shareholders of the Bank |
|
1,178 |
|
1,218 |
Interest Income, net |
2,336 |
2,593 |
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Expenses (income) from credit losses |
(73) |
171 |
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Total non-Interest income |
884 |
842 |
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Of which: Fees |
727 |
756 |
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Total operating and other expenses |
1,463 |
1,464 |
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Of which: Salaries and related expenses |
872 |
915 |
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Primary net profit per share of |
11.74 |
12.14 |
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Principal data from the balance sheet |
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NIS million |
Total assets |
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232,809 |
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208,130 |
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221,593 |
of which: Cash and deposits with banks |
77,663 |
58,553 |
68,866 |
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Securities |
27,237 |
22,963 |
26,985 |
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Credit to the public, net |
120,436 |
118,686 |
117,622 |
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Total liabilities |
219,604 |
196,313 |
208,947 |
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of which: Deposits from the public |
204,069 |
179,013 |
191,125 |
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Deposits from banks |
2,735 |
4,145 |
4,314 |
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Bonds and subordinated capital notes |
4,689 |
4,713 |
4,767 |
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Capital attributed to the shareholders of the Bank |
12,615 |
11,292 |
12,071 |
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Additional data |
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Share price ( |
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14,410 |
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14,420 |
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14,990 |
Dividend per share ( |
495 |
486 |
795 |
(1) Annualized.
(2) Including provision in respect of off-balance sheet credit instruments.
CONSOLIDATED STATEMENT OF INCOME |
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(NIS million) |
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For the three months |
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For the six months |
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For the year |
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|
2024 |
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2023 |
|
2024 |
|
2023 |
|
2023 |
|
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
|
(audited) |
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Interest Income |
|
2,879 |
|
2,523 |
|
5,455 |
|
4,699 |
|
9,850 |
Interest Expenses |
1,658 |
1,205 |
3,119 |
2,106 |
4,884 |
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Interest Income, net |
1,221 |
1,318 |
2,336 |
2,593 |
4,966 |
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Expenses (income) from credit losses |
(71) |
99 |
(73) |
171 |
502 |
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Net Interest Income after expenses from credit losses |
1,292 |
1,219 |
2,409 |
2,422 |
4,464 |
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Non- Interest Income |
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|
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Non-Interest Financing income |
47 |
43 |
147 |
79 |
142 |
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Fees |
362 |
368 |
727 |
756 |
1,502 |
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Other income |
9 |
6 |
10 |
7 |
8 |
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Total non- Interest income |
418 |
417 |
884 |
842 |
1,652 |
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Operating and other expenses |
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Salaries and related expenses |
430 |
466 |
872 |
915 |
1,746 |
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Maintenance and depreciation of premises and equipment |
86 |
83 |
173 |
167 |
341 |
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Amortizations and impairment of intangible assets |
32 |
30 |
63 |
60 |
122 |
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Other expenses |
184 |
161 |
355 |
322 |
668 |
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Total operating and other expenses |
732 |
740 |
1,463 |
1,464 |
2,877 |
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Profit before taxes |
978 |
896 |
1,830 |
1,800 |
3,239 |
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Provision for taxes on profit |
364 |
307 |
643 |
622 |
1,090 |
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Profit after taxes |
614 |
589 |
1,187 |
1,178 |
2,149 |
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The bank's share in profit of equity-basis investee, after taxes |
22 |
19 |
40 |
84 |
113 |
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Net profit: |
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|
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Before attribution to non–controlling interests |
636 |
608 |
1,227 |
1,262 |
2,262 |
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Attributed to non–controlling interests |
(27) |
(21) |
(49) |
(44) |
(90) |
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Attributed to shareholders of the Bank |
609 |
587 |
1,178 |
1,218 |
2,172 |
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NIS |
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Primary profit per share attributed to the shareholders |
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Net profit per share of |
6.07 |
5.85 |
11.74 |
12.14 |
21.65 |
STATEMENT OF COMPREHENSIVE INCOME |
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(NIS million) |
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For the three months |
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For the six months |
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For the year |
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|
2024 |
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2023 |
|
2024 |
|
2023 |
|
2023 |
|
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(audited) |
Net profit before attribution to non‑controlling interests |
|
636 |
|
608 |
|
1,227 |
|
1,262 |
|
2,262 |
Net profit attributed to non‑controlling interests |
(27) |
(21) |
(49) |
(44) |
(90) |
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Net profit attributed to the shareholders of the Bank |
609 |
587 |
1,178 |
1,218 |
2,172 |
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Other comprehensive income (loss) before taxes: |
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Adjustments of available for sale bonds to fair value, net |
(200) |
56 |
(244) |
26 |
213 |
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Adjustments of liabilities in respect of employee benefits(1) |
1 |
6 |
12 |
3 |
25 |
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Other comprehensive income (loss) before taxes |
(199) |
62 |
(232) |
29 |
238 |
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Related tax effect |
73 |
(22) |
90 |
(11) |
(81) |
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Other comprehensive income (loss) before attribution to non‑controlling interests, after |
(126) |
40 |
(142) |
18 |
157 |
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Less other comprehensive income (loss) attributed to non‑controlling interests |
(5) |
3 |
(5) |
5 |
9 |
|||||
Other comprehensive income (loss) attributed to the shareholders of the Bank, after taxes |
(121) |
37 |
(137) |
13 |
148 |
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Comprehensive income before attribution to non‑controlling interests |
510 |
648 |
1,085 |
1,280 |
2,419 |
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Comprehensive income attributed to non‑controlling interests |
(22) |
(24) |
(44) |
(49) |
(99) |
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Comprehensive income attributed to the shareholders of the Bank |
488 |
624 |
1,041 |
1,231 |
2,320 |
(1) Mostly reflects adjustments in respect of actuarial assessments as of the end of the period regarding defined benefits pension plans, of amounts recorded in the past in other comprehensive income.
CONSOLIDATED BALANCE SHEET |
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(NIS million) |
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2024 |
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2023 |
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2023 |
|
(unaudited) |
(unaudited) |
(audited) |
|||
Assets |
|
|
|
|
|
|
Cash and deposits with banks |
77,663 |
58,553 |
68,866 |
|||
Securities |
27,237 |
22,963 |
26,985 |
|||
Securities borrowed |
30 |
104 |
57 |
|||
Credit to the public |
122,044 |
120,028 |
119,240 |
|||
Provision for Credit losses |
(1,608) |
(1,342) |
(1,618) |
|||
Credit to the public, net |
120,436 |
118,686 |
117,622 |
|||
Credit to the government |
1,421 |
961 |
1,055 |
|||
Investment in investee company |
825 |
751 |
786 |
|||
Buildings and equipment |
859 |
880 |
877 |
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Intangible assets |
348 |
309 |
328 |
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Assets in respect of derivative instruments |
2,670 |
3,588 |
3,651 |
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Other assets(2) |
1,320 |
1,335 |
1,366 |
|||
Total assets |
232,809 |
208,130 |
221,593 |
|||
Liabilities and Capital |
|
|
|
|||
Deposits from the public |
204,069 |
179,013 |
191,125 |
|||
Deposits from banks |
2,735 |
4,145 |
4,314 |
|||
Deposits from the Government |
719 |
608 |
750 |
|||
Securities lent or sold under agreements to repurchase |
744 |
- |
- |
|||
Bonds and subordinated capital notes |
4,689 |
4,713 |
4,767 |
|||
Liabilities in respect of derivative instruments |
2,388 |
3,184 |
3,784 |
|||
Other liabilities(1)(3) |
4,260 |
4,650 |
4,207 |
|||
Total liabilities |
219,604 |
196,313 |
208,947 |
|||
Shareholders' equity |
12,615 |
11,292 |
12,071 |
|||
Non-controlling interests |
590 |
525 |
575 |
|||
Total capital |
13,205 |
11,817 |
12,646 |
|||
Total liabilities and capital |
232,809 |
208,130 |
221,593 |
(1) Of which: provision for credit losses in respect of off-balance sheet credit instruments in the amount of
(2) Of which: other assets measured at fair value in the amount of
(3) Of which: other liabilities measured at fair value in the amount of
STATEMENT OF CHANGES IN EQUITY |
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(NIS million) |
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For the three months ended |
||||||||||
|
|
Share |
|
Accumulated |
|
Retained |
|
Total |
|
Non- |
|
Total |
Balance as of |
927 |
(171) |
11,599 |
12,355 |
597 |
12,952 |
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Net profit for the period |
- |
- |
609 |
609 |
27 |
636 |
||||||
Dividend |
- |
- |
(228) |
(228) |
(29) |
(257) |
||||||
Other comprehensive loss, after tax effect |
- |
(121) |
- |
(121) |
(5) |
(126) |
||||||
Balance as at |
927 |
(292) |
11,980 |
12,615 |
590 |
13,205 |
|
|
|
|
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|
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|
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For the three months ended |
||||||||||
|
|
Share |
|
Accumulated |
|
Retained |
|
Total |
|
Non- |
|
Total |
Balance as of |
927 |
(327) |
10,288 |
10,888 |
501 |
11,389 |
||||||
Net profit for the period |
- |
- |
587 |
587 |
21 |
608 |
||||||
Dividend |
- |
- |
(220) |
(220) |
- |
(220) |
||||||
Other comprehensive income, after tax effect |
- |
37 |
- |
37 |
3 |
40 |
||||||
Balance as at |
927 |
(290) |
10,655 |
11,292 |
525 |
11,817 |
|
|
|
|
|
|
|
|
|
|
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For the six months ended |
||||||||||
|
|
Share |
|
Accumulated |
|
Retained |
|
Total |
|
Non- |
|
Total |
Balance as at |
927 |
(155) |
11,299 |
12,071 |
575 |
12,646 |
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Net profit for the period |
- |
- |
1,178 |
1,178 |
49 |
1,227 |
||||||
Dividend |
- |
- |
(497) |
(497) |
(29) |
(526) |
||||||
Other comprehensive loss, after tax effect |
- |
(137) |
- |
(137) |
(5) |
(142) |
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Balance as at |
927 |
(292) |
11,980 |
12,615 |
590 |
13,205 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the six months ended |
||||||||||
|
|
Share |
|
Accumulated |
|
Retained |
|
Total |
|
Non- |
|
Total |
Balance as at |
927 |
(303) |
9,935 |
10,559 |
476 |
11,035 |
||||||
Adjustment of the opening balance, net of tax, due to the effect of initial |
- |
- |
(10) |
(10) |
- |
(10) |
||||||
Adjusted balance at |
927 |
(303) |
9,925 |
10,549 |
476 |
11,025 |
||||||
Net profit for the period |
- |
- |
1,218 |
1,218 |
44 |
1,262 |
||||||
Dividend |
- |
- |
(488) |
(488) |
- |
(488) |
||||||
Other comprehensive income, after tax effect |
- |
13 |
- |
13 |
5 |
18 |
||||||
Balance as at |
927 |
(290) |
10,655 |
11,292 |
525 |
11,817 |
STATEMENT OF CHANGES IN EQUITY (CONT'D) |
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(NIS million) |
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For the year ended |
||||||||||
|
|
Share |
|
Accumulated |
|
Retained |
|
Total |
|
Non- |
|
Total |
Balance as at |
927 |
(303) |
9,935 |
10,559 |
476 |
11,035 |
||||||
Adjustment of the opening balance, net of tax, due to the effect of initial |
- |
- |
(10) |
(10) |
- |
(10) |
||||||
Adjusted balance at |
927 |
(303) |
9,925 |
10,549 |
476 |
11,025 |
||||||
Net profit for the period |
- |
- |
2,172 |
2,172 |
90 |
2,262 |
||||||
Dividend |
- |
- |
(798) |
(798) |
- |
(798) |
||||||
Other comprehensive income, after tax effect |
- |
148 |
- |
148 |
9 |
157 |
||||||
Balance as at |
927 |
(155) |
11,299 |
12,071 |
575 |
12,646 |
* Cumulative effect of the initial implementation of US accounting principles in the matter of financial instruments - credit losses (ASC-326).
(1) Including share premium of
(2) Including an amount of
Contact:
zucker.d@fibi.co.i
+972-3-519-6224
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