Mizrahi Tefahot presents a year of record performance, despite moderation in the mortgage industry, towards the end of 2022 (Photo: ShutterStock)
Bank Mizrahi Tefahot today publishes the quarterly report that reflects the bank's (for the entire year 2022) net profit of NIS 4,472 million, compared to NIS 3,188 million in 2021, which means an increase of 40.3%.
The return on capital in 2022: 20.1%, compared to 15.8% in 2021. The efficiency ratio (Cost Income Ratio): was 45.2%.
Net profit in the fourth quarter: NIS 1,087 million, compared to NIS 679 million in the corresponding quarter, i.e.
an increase of 60.1%.
The bank announced that a dividend of NIS 326.1 million will be distributed, which is 30% of the profits of the fourth quarter of 2022. The total dividend for the profits of 2022 - NIS 995.4 million.
The results presented by Mizrahi-Tefahot in the last quarter of this year and in the whole of 2022, reflect the continued growth in the scope of the bank's current activity, against the background of changes in the global and local macroeconomic environment.
Mizrahi Tefahot's achievement is admirable mainly against the background of a certain slowdown in the mortgage portfolio towards the end of 2022. This is the largest mortgage bank in Israel - and at least for the time being, also based on what is currently known about the beginning of 2023, it manages to compensate for the cooling of the real estate market with the help of business development in other areas .
Moshe Larry, CEO of Mizrahi Tefahot (Photo: Avshalom Shoshani)
CEO of Mizrahi Tefahot, Moshe Larry
: "The noteworthy financial results of the bank in 2022 testify to our success in meeting the challenging goals we set for ourselves, chief among them the completion of the merger with Agud by the end of the year, as planned.
Despite the increased competition within the banking system and outside, the bank shows an impressive growth in all areas of activity, in revenues and net profit, which grew by 40.3% compared to the corresponding year, and amounted to NIS 4,472 million.
This achievement is a certificate of honor for the bank's employees and its managers, who demonstrated throughout the year extraordinary determination and professionalism, and for that they deserve great recognition and appreciation.
After a decade of zero real interest rates and against the background of the outbreak of inflation in the world and in Israel, the interest rate environment changed during the year 2022, and within a few months the Bank of Israel's interest rate increased from a rate of 0.1% at the end of the first quarter to a rate of 3.25% at the end of the year, a figure that also affected the bank's financial results .
The sharp increase in interest rates in the economy, which from the beginning of 2023 increased by an additional percentage to a rate of 4.25%, represents a difficult challenge for many customers, households and businesses, and requires close and daily activity of control and monitoring of all possible risks.
At the same time, the bank also works to produce customized solutions, in order to help its customers succeed in this difficult period.
Although in the last months of the year there was a moderation in demand in the residential real estate market in general and housing loans in particular, 2022 ended with record performance in the mortgage sector. Despite the intense competition and changes in the operating environment, Mizrahi-Tefahot continues to maintain its position as the largest and leading bank in Israel in the mortgage sector. In 2022 The bank made new loans for housing and for any purpose with a financial volume of approximately NIS 41 billion.
Bank Yahav of the Mizrahi-Tefahot Group continues to present a good performance. In 2022, the bank recorded a net profit of NIS 279 million, compared to NIS 203 million in the corresponding period last year, and a return on capital of 13.8 %, compared to a return on capital of 11.2% in 2021.
Mizrahi-Tefahot will distribute a dividend for the profits of the fourth quarter of the year. According to the board of directors' decision, the shareholders will benefit from a dividend of NIS 326.1 million - 30% of the profits of the fourth quarter. Along with this amount comes the dividend the cumulative for the profits of the year 2022 to NIS 995.4 million,"
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