Leumi's profits in the first half of the year: NIS 3.6 billion

Strong performance for Leumi in the second quarter and first half of 2022: net profit - about NIS 2 billion in the second quarter and about NIS 3.6 billion in the first half of the year.

The shareholders will benefit from a dividend of NIS 400 million

Walla!

Of money

08/16/2022

Tuesday, August 16, 2022, 09:12 Updated: 10:01

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National Bank.

Net profit of about NIS 3.6 billion in six months (Photo: Reuven Castro)

Leumi publishes the financial statements for the second quarter of 2022, which reflect excellent profits for the bank.

Leumi earned (net profit) an amount of NIS 2 billion in the second quarter of the year, which is added to a net profit of NIS 1.6 billion from the first quarter, so that in total the bank's profits from the beginning of 2022 amount to approximately NIS 3.6 billion, more than any other bank in Israel.

Prominent items in the report:

Return on equity - 18.5% in the second quarter and 17.1% in the first half

Credit portfolio - growth of 12.3% in the first half

Continued improvement in the efficiency ratio - 35% for the second quarter and 39.7% for the first half

Following the results, the bank will distribute a dividend of approx. NIS 400 million to the shareholders.

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Hanan Friedman, CEO of Leumi. Excellent profit line (photo: PR)

In the context of national reports, it should be noted the completion of the LEUMI USA merger with VALLEY NATIONAL BANK on April 1, 2022. As a result of the merger, a net tax profit of approximately NIS 645 million was recorded (approximately NIS 194 million was recorded in the first quarter of 2022, and the balance was recorded in the second quarter).

The bank also notes the growth in the credit portfolio - the bank continued to focus its growth in the credit portfolio in the business, commercial and mortgage sectors.

During the first half of the year the credit portfolio grew by 12.3%.

The expenses (income) for credit losses in the first half of 2022, excluding the results of LEUMI USA, reflect an expense at the rate of 0.04% of the average balance of credit to the public, compared to income at the rate of 0.26% in the corresponding period last year.

The expenditure in the first half of the year originates from an increase in the group provision, offsetting collections.

Net interest income in the first half of 2022, excluding the results of LEUMI USA, amounted to approximately NIS 5.8 billion, compared to approximately NIS 4.7 billion in the corresponding period last year, an increase of approximately 23%.

The increase in interest income is the result of the increase in the credit portfolio and of index and interest rate differences between the periods.

Non-interest financing income in the first half of 2022, excluding LEUMI USA, amounted to about NIS 0.7 billion, compared to about NIS 1 billion in the corresponding period last year.

The revenues in the reported period were mainly affected by the profit from the merger of LEUMI USA with VALLEY NATIONAL BANK and the declines in the markets.

Operating and other expenses in the first half of 2022, excluding the results of LEUMI USA, decreased by 116 million NIS compared to the corresponding period last year, a decrease of 3.4%.

Equity ratios - Tier 1 equity ratio as of June 30, 2022 was 11.25%, and the total equity ratio was 14%.

Sale of Beit Mani - As part of the preparation for the completion of the move of the bank's headquarters to Lod in 2023, the bank entered into an agreement during the month of April 2022 to sell one of its headquarters buildings in Tel Aviv.

This sale is expected to yield the bank a pre-tax capital gain of approximately NIS 524 million, which will be recorded in 2023.

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