Record profits for Mizrahi-Tefahot in the first quarter of 2022

The Mizrahi-Tefahot Group publishes the quarterly reports, which reflect a sharp increase in the Bank's profits.

CEO Moshe Larry, on the peak data: "Indicates an acceleration in the growth trend that has characterized the Bank in recent years, and expansion in most areas of activity"

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Of money

24/05/2022

Tuesday, 24 May 2022, 11:14 Updated: 11:29

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The Mizrahi-Tefahot Group today publishes the first quarterly report of 2022. The data shows a sharp increase in the Bank's profits, which are in fact the group's all-time record profits: Net profit in the first quarter: NIS 1,154 million compared to NIS 676 million in the corresponding quarter last year, an increase of 70.7%.

Return on equity in the first quarter: 21.9% compared to 14.1% in the corresponding quarter and 15.8% in 2021 as a whole.

Financing income in the first quarter: NIS 2,261 million compared to NIS 1,880 million in the first quarter of 2021, an increase of 20.3%.

Exceptional growth was also recorded in credit to the public, which amounted to NIS 282.9 billion in the first quarter, an increase of 13.4% compared with the corresponding quarter last year.

In the first quarter, the credit portfolio increased by NIS 11.5 billion, an amount similar to the average annual performance in the years 2020-2015.

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Mizrahi-Tefahot CEO, Moshe Larry (Photo: Mizrahi Tefahot Spokeswoman)

"The results reported for the first quarter of 2022, reflect an all-time record"

The Bank's CEO, Moshe Larry: “The Bank's results in the first quarter of 2022 indicate accelerated growth in light of the continued recovery in economic activity in the economy.

The results reported for the first quarter of 2022, reflect an all-time record: a net profit of NIS 1,154 million and an extraordinary return on equity of 21.9%.

Even after neutralizing non-recurring capital gains of NIS 279 million net, in respect of the realization of assets, the Bank presents a net profit and a return on capital worth noting, indicating an acceleration in the growth trend that has characterized it in recent years, and expansion in most areas of activity.

The development momentum, which also took place against the background of the continued improvement in economic activity in the economy in the first quarter of the year, is reflected in the main balance sheet items, led by credit to the public, which increased significantly by 13.4%, compared to the corresponding quarter in 2021.

In the first three months of the year, the credit portfolio grew by NIS 11.5 billion - an increase of 4.2% compared to the end of 2021, which reflects a growth rate of 16.9% in annual terms.

Growth in the credit portfolio was recorded both in the mortgage sector - an industry that continues to be characterized by high demand and record performance, and in the business sectors.

In this context, it is worth noting that Mizrahi-Tefahot was recently selected as an outstanding bank in the index of the friendliness of banks for small and medium-sized businesses, on behalf of the Ministry of Economy and Industry.

On the revenue side, there was a 16.3% increase in financing income from current operations, which amounted to NIS 1,815 million in the first quarter, compared with NIS 1,560 million in the corresponding period.

Commission income reached NIS 520 million, compared with NIS 477 million in the corresponding quarter, an increase of 9.0%.

On the other hand, the Bank manages to maintain expenditure restraint and shows a moderate increase of only 3.5% in operating and other expenses.

These amounted to NIS 1,388 million in the first quarter, compared with NIS 1,341 million in the first quarter last year.

Thanks to this, the bank presents a qualitative efficiency ratio of 48.8%, even after neutralizing capital gains from the sale of assets.

As of the end of the first quarter, the Bank's capital ratios meet the conditions for dividend distribution, in accordance with its policy on the subject.

In view of a draft directive issued by the Supervisor of Banks in March, according to which loans intended for the purchase of land for development or construction purposes, at a financing rate exceeding 75% of the value of the property purchased, will be weighted at a risk weight of 150% instead of 100%. Bank that at this point in time it is better not to distribute a dividend.

This is in order to maintain a sufficient level of capital, which will allow it to continue the growth momentum and cope optimally with the increased demand for credit. "

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