The five largest banks are closing a dream quarter, which includes a 63% jump in profits to NIS 4.41 billion. One of the reasons for profits – one-time income from the sale of assets. The rate of return on capital in all banks was higher than 10%. The cumulative bank capital amounted to NIS 140.35 billion.
The highest profit (NIS 1.65 billion) was presented by Bank Hapoalim. Mizrahi Tefahot, led by Moshe Larry, presented the highest return on capital (21.9%). Despite the gains, the banks reduced the dividend distribution. Discount Bank will share 20% of the profit and International 50% of the profit. Bank Leumi, managed by Hanan Friedman, earned NIS 1.6 billion – an increase of 20% compared to the same period last year. The profit is a return of 15.6% on capital, which amounted to NIS 42.4 billion. The bank will distribute a dividend of NIS 322 million, which constitutes 20% of the profit.
On April 1, the bank’s merger in New York with National Valley Bank was completed, which will result in a net profit of NIS 645 million, of which NIS 194 million will be recorded in the quarter. In April, the bank sold Beit Mani in Tel Aviv at a profit Of NIS 524 million before tax, to be recorded in 2023. Mizrahi Tefahot’s profits jumped 70.7% to NIS 1.15 billion. This is the highest quarterly profit ever in the bank’s history, managed by Moshe Larry. The profit is a return of 21.9% on capital. Part of the profit is explained by one-time income from the realization of real estate assets, following the merger with Union Bank.
Excluding capital gains from the sale of assets in the amount of NIS 279 million, the return on capital would have dropped to 16.6%. In March, a NIS 3.7 billion housing loan portfolio insurance deal was completed with an international reinsurer, to improve capital adequacy.
The quarter does not distribute dividends and this will happen next quarter. CEO Moshe Larry: “The results reflect an all-time record. 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, headed by credit. “
The International Bank earned NIS 322 million in the first quarter, an increase of 5.9% compared to the corresponding quarter last year. The profit represents a return of 13% on shareholders’ equity, which stood at NIS 9.85 billion. The bank, managed by Smadar Barber Tzadik, will distribute 50% of the net profit as a dividend, which is NIS 160 million. This is the highest distribution rate in the banking system.