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Mizrahi Tefahot: A profit of over NIS 1.6 billion in 2020
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Tuesday, 09 March 2021, 17:07 Updated: 17:32
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Mizrahi Tefahot Bank concludes a challenging year with a smile: the bank's net profit in 2020 was NIS 1.61 billion, the return on capital in 2020: 9.5% and the efficiency ratio 53.9%.
The reports also show a nice recovery trend towards the end of 2020: the net profit in the fourth quarter was NIS 506 million, with a return on capital (in the fourth quarter) of 11.4%.
The report also shows that credit to the public (excluding Union Bank) increased by 7.9% compared to the end of 2019. There was also an increase in public deposits (again, excluding Union) with an increase of 17%, compared to the end of 2019.
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Customers went back to paying mortgages
Since the beginning of the Corona crisis, the bank has acted quickly to identify the customers, private and business, who have been affected by the crisis, and to create personal solutions for them, which will help them get through the difficult period.
As early as March 2020, the Bank offered the mortgage customers who needed it, the option to freeze the loan repayments for 4 months.
Subsequently, the Bank acted in accordance with the outlines of the Bank of Israel and allowed additional deferrals, for anyone who had difficulty returning to repay the loan regularly.
Such arrangements were also made with business owners as well as households with consumer credit, which found it difficult to repay on a regular basis, due to the consequences of the crisis and the rapid and significant rise in unemployment rates in the economy.
Thanks to the assistance programs and the certain improvement in economic activity in the economy - along with the progress of the vaccination campaign, there is a clear trend of returning customers to regular payments.
Union Bank as a subsidiary
Following the completion of the transaction for the acquisition of Union Bank and its transformation into a wholly owned subsidiary of Mizrahi-Tefahot, the balance sheet data of Union were consolidated into the group statements in the third quarter of this year, and in the last quarter profit and loss data were consolidated for the first time.
Already at this stage, and even before the benefits that the group will have from the conversion and synergy moves between the various activities, the joining of Union Bank contributes to increasing the Mizrahi-Tefahot Group's share in the banking system.
According to the banks' data for the end of the third quarter, Mizrahi-Tefahot's share of credit to the public increased to 22.0%, and in public deposits, the bank's market share increased to 18.6%.
Moshe Larry, CEO of Mizrahi Tefahot Bank (Photo: Mizrahi Tefahot Spokeswoman)
"The result is not obvious"
Moshe Larry responded to the report: "The Bank's results for 2020 reflect the continued growth in a variety of areas of activity alongside the consequences of the corona crisis and the macroeconomic environment. The financial results for 2020 reflect the Bank's continued growth momentum For credit losses, and the effect of the interest rate environment and zero inflation. Thanks to the extraordinary effort and commitment of our thousands of dedicated employees and managers. "
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