Leumi Reports Net Income of NIS 2,015 Million ($565 Million) and 11.4% ROE in the First Half of 2019
TEL AVIV, Israel, Aug. 14, 2019 /PRNewswire/ --
> Net income in the first half of 2019 reached NIS 2,015 million ($565 million), compared with NIS 1,633 million ($458 million) in the same period last year - a 23.4% year-over-year increase.
> Return on equity in the first half of 2019 was 11.4%, compared with 9.9% in the same period last year. Excluding the effect of the sale of Leumi Card, the return on equity in the first half of 2019 was 10.2%, compared with 9.4% in the same period last year.
> Net income in the second quarter of 2019 totaled NIS 923 million ($259 million), compared with NIS 903 million ($253 million) in the same period last year, and compared with NIS 843 million ($236 million) in the same period last year when excluding the effect of Leumi Card.
> Return on equity in the second quarter of 2019 was 10.6%, compared with 10.4% in the same period last year, excluding the effect of Leumi Card.
> Efficiency ratio continues to improve - A 53.1% ratio in the first half of 2019, compared with 61.7% in the same period last year. Excluding the effect of Leumi Card, the efficiency ratio in the first half of 2019 was 55.5%, compared with 62.0% in the same period last year. Within this framework, the Bank recently launched a new voluntary retirement plan for 250 employees by the end of 2019.
> Credit loss expenses in the first half of 2019 reached 0.19% of the credit portfolio, compared with 0.05% in the same period last year (excluding Leumi Card). The increase stems from credit growth, a decrease in collections and reclassifications.
> Common Equity Tier 1 capital ratio in the first half of 2019 was 11.65%, and the total capital ratio reached 15.08%.
> The Bank will distribute a dividend of 40% of its net income in the second quarter of 2019, totaling NIS 369 million ($103 million). The accumulated dividend for the first half of 2019 totaled NIS 806 million ($226 million).
> Share buyback - At the end of May 2019, the Bank began to implement a share buyback plan in the amount of up to NIS 700 million ($196 million). As of the date of the financial statements' approval, the Bank purchased shares totaling NIS 301 million ($84 million).
> Net interest income in the first half of 2019, excluding the effect of Leumi Card, was up by NIS 310 million ($87 million) compared with the same period last year, a 7.2% increase.
> Total operating and other expenses in the first half of 2019, excluding Leumi Card, were up by NIS 101 million ($28 million) compared with the same period last year, a 2.7% increase. The increase mainly arose from a provision for the bonus granted to employees based on high returns and the collective salary agreement.
An Improvement in Balance Sheet Parameters:
> Shareholders' equity totaled NIS 35.8 billion ($10.0 billion) as at June 30, 2019, compared with NIS 34.7 billion ($9.7 billion) as at June 30, 2018.
> Net credit to the public totaled NIS 277.1 billion ($77.7 billion) as at June 30, 2019, compared with NIS 264.2 billion ($74.1 billion) as at June 30, 2018 (excluding Leumi Card). The increase is mainly attributed to mortgage, middle-market and corporate loans.
> Deposits by the public totaled NIS 373.2 billion ($104.6 billion) as at June 30, 2019, compared with NIS 361.2 billion ($101.3 billion) as at June 30, 2018 (excluding Leumi Card).
> Leverage ratio as at June 30, 2019 was 7.14%, compared to the 6% minimum required by the Bank of Israel.
> Liquidity coverage ratio as at June 30, 2019 was 125%, compared to the 100% minimum required by the Bank of Israel.
Leumi Group - Principal Data from the Financial Statements
Profit and Profitability (in NIS millions)
For the six months Change in % December 31
ended June 30
2019 2018 2018
---
Net
interest
income 4,586 4,420 3.8 8,890
---
Credit
loss
expenses 270 116
+ 519
---
Non-
interest
income 2,749 2,241 22.7 4,871
---
Operating
and other
expenses 3,896 4,109 (5.2) 8,337
---
Profit
before
taxes 3,169 2,436 30.1 4,905
---
Provision
for taxes 1,120 783 43.0 1,619
---
Profit
after
taxes 2,049 1,653 24.0 3,286
---
The
Bank's
share in
profits
of
companies
included
on
equity
basis (14) 12 36
---
Net
income
attributed
to non-
controlling
interests (20) (32) 37.5 (65)
---
Net
income
attributed
to
shareholders
of the
banking
corporation 2,015 1,633 23.4 3,257
---
Return on
equity
(%) 11.4 9.9 9.5
---
Earnings
per
share
(NIS) 1.35 1.07 2.15
---
Development of Balance Sheet Items (in NIS millions)
As at June 30 December 31
2019 2018 2018
---
Net credit to the public (a) 277,129 264,173 271,173
---
Deposits by the public (a) 373,152 361,220 364,591
---
Shareholders' equity 35,795 34,680 35,305
---
Total assets 467,880 450,449 460,657
---
a) Excluding the balances for Leumi Card, which have been classified as held-for-sale assets and liabilities since the balance sheet as at March 31, 2018.
Principal Financial Ratios (%)
As at June 30 December 31
2019 2018 2018
---
Net credit to the
public to total
assets (a) 59.2 58.6 58.9
---
Deposits by the
public to total
assets (b) 79.8 80.2 79.1
---
Total equity to risk
assets 15.08 14.29 14.54
---
Total Tier 1 equity
to risk assets 11.65 11.17 11.07
---
Leverage ratio 7.14 7.01 7.05
---
Liquidity coverage
ratio 125 124 121
---
(a) Excluding the credit for Leumi Card (comparative results), which have been classified as held-for-sale assets and liabilities since the balance sheet as at March 31, 2018.
(b) Excluding the deposits by Leumi Card (comparative results), which have been classified as held-for-sale assets and liabilities since the balance sheet as at March 31, 2018.
The data in this press release has been converted into US dollars solely for convenience purposes, at the representative exchange rate published by the Bank of Israel on June 30, 2019, NIS 3.566.
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).
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: 03-9180685
UK: 0-800-051-8913
US & Canada: 1-888-281-1167
All other locations: +972-3-918-0685
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.
For more information, visit www.leumi.co.il or contact
Daphna Golden
VP, Head of Investor Relations
Daphna.Golden@bankleumi.co.il
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SOURCE Bank Leumi
