Nearly NIS 1 billion in profits for Mizrahi-Tefahot in the second quarter - Walla! Of money

2021-08-16T11:26:25.639Z

Mizrahi Bank presents not only huge profits in the second quarter of 2021, but also the highest return on capital among all banks in Israel

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Nearly NIS 1 billion in profits for Mizrahi-Tefahot in the second quarter

Mizrahi Bank presents not only huge profits in the second quarter of 2021, but also the highest return on capital among all banks in Israel.

The bank will distribute a dividend of close to half a billion shekels to shareholders for its profits in 2020, the corona year

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From the Bank's Business Assistance Campaign during the Corona Period.

Will distribute half a billion shekels as a dividend over 2020 (Photo: Ilan Besor)

Positive contribution to the acquisition of Union Bank

The report shows continued growth in the Bank's operations alongside macroeconomic effects:

data for the first half of 2021 reflect the continued growth in the Bank's operations, as reflected in, among other things, an increase in financing income from current operations, even without Union Bank (9.2% increase in the second quarter) And of 5.4% in the first half, compared to the corresponding periods last year), and further expansion in the main balance sheet items, including credit volumes and deposits (annual growth rate of 7.2% and 7.3%, respectively).

At the same time, the acquisition of Union Bank continues to make a positive contribution, both in terms of expanding business activity and on the financial results.

At the same time, the improvement in the macroeconomic situation in Israel in the first half of the year led to a 1.6% increase in the consumer price index, and a positive effect on the Bank's financing income in the first half of the year. This is compared to a decrease of 0.8% in the consumer price index in the first half of 2020.

The return of the economy to regular activity in the first months of the year, helped the vast majority of customers who needed deferred payments, to repay their loans regularly.

As a result, the Bank partially reduced the group provision for credit losses, which was made in the past year.

Union Bank acquired by Mizrahi Tefahot.

It is estimated that he contributed to the group's successful performance (Photo: Uri Lenz)

Special preparations against the background of peak mortgage demand: The increased trend of activity in the residential real estate industry in general and the mortgage market in particular, which characterized 2020, continued, and even more so, from the beginning of 2021.

In the first quarter of the year there was a leap in housing market growth. in demand for mortgages to monthly performance unprecedented. However, even in light of the entry into force of the Bank of Israel to cancel the limit of the frame - a move that has led to lower second mortgages.

sharp rise in applications for mortgage offerings from new borrowers, alongside increased significantly the number of customers who wanted to examine the feasibility The refinancing of their existing loan has created an exceptional demand, which requires the bank to prepare specially and with unconventional effort.

According to the bank: " Reasonable, noteworthy. "

In total, the Bank made new loans in the first half of 2021 - for housing and all purposes, in a financial volume of NIS 17.9 billion, compared with NIS 13 billion in the corresponding period last year, an increase of 37.5%.

In addition, existing loans were recycled, amounting to more than NIS 3.2 billion, compared with NIS 1.5 billion in the corresponding period in 2020, a jump of about 114%.

All this, while maintaining maximum quality of the underwriting, and maintaining a particularly low risk profile of the mortgage portfolio.

Moshe Larry, CEO of Mizrahi-Tefahot. Nearly NIS 1 billion profit in the second quarter of 2021, almost half a billion shekels dividend for 2020 (Photo: Mizrahi Tefahot spokesperson)

"The success of the vaccination campaign is reflected in the bank's results"

Mizrahi-Tefahot CEO Moshe Larry

: "The Bank's record results in the second quarter of 2021 and the first half of the year reflect the continued growth momentum that has characterized the Bank in recent years, as well as the acquisition contribution of Union Bank on profit and profitability, and its positive impact On expanding our business operations.

The recovery in economic activity since the beginning of 2021 - following the success of the vaccination campaign - is also reflected in the Bank's results, both through the effect of the rise in the index on financing income and in reducing credit losses, in line with the return of the vast majority of deferred loans.

The continued expansion of the Bank's operations can be seen in the development of the main balance sheet items. The total balance sheet in the first half amounted to NIS 374.4 billion, compared with NIS 360.1 billion at the end of 2020 - an annual growth rate of 8.1%; Credit to the public amounted to NIS 254.2 billion, compared to NIS 245.5 billion at the end of 2020 - an annual growth rate of 7.2% and public deposits in the first half of 2021 reached NIS 294.4 billion, compared to NIS 284.2 billion at the end of 2020 - annual growth rate Of 7.3%.

The growth in business activity in the first half of 2021 would not have been achieved without the extraordinary mobilization of our thousands of dedicated employees and managers. The multiplicity of tasks and the need to simultaneously deal with a series of unconventional challenges and burdens, required the bank's employees to make a particularly large effort and investment. Fortunately, thanks to the determination and commitment of our employees we continued, the period is complex and difficult to implement the concept of personal and professional service to our, and give each customer, private and business alike, a comprehensive package of professional support and value propositions tailored optimally to the needs and characteristics. "

Larry also addressed To Bank Yahav, which is part of the group: "Bank Yahav of the Mizrahi-Tefahot Group continues to present good financial results and good performance. In the first half of the year, Bank Yahav recorded a net profit of NIS 97 million, compared with NIS 85 million in the corresponding period last year, and a remarkable return on equity of 11.2%, which indicates, among other things, the quality of its credit portfolio.

Following the Supervisor of Banks' announcement regarding the possibility of distributing a dividend in respect of profits for 2020, the Bank's Board of Directors decided to distribute a dividend in the amount of NIS 483 million - 30% of the past year's profits.

"Returning to a dividend distribution is a positive line for the shareholders, and the Bank intends to act again in accordance with its dividend policy, insofar as this is in accordance with the provisions of the law and the directives of the Supervisor of Banks."

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Source: walla

All business articles on 2021-08-16

Nearly NIS 1 billion in profits for Mizrahi-Tefahot in the second quarter - Walla! Of money

Nearly NIS 1 billion in profits for Mizrahi-Tefahot in the second quarter

Good to know (promoted)

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Positive contribution to the acquisition of Union Bank

"The success of the vaccination campaign is reflected in the bank's results"

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