International Bank (Magma Images Photo, Flash 90)
The International Bank, perhaps like the entire Israeli banking system, ended 2021 with exceptional performance. The bank almost doubled its net profit, which amounted to a fantastic sum of NIS 1.4 billion, with NIS 333 million of these profits achieved in the fourth quarter of the year. The return on capital of the bank, which is considered small but very efficient (and very conservative), has reached an impressive level of 14.7%.
The Bank’s revenues increased by 9.4% in 2021 compared to the corresponding period last year and amounted to NIS 4.55 billion. Net financial income increased by approximately 11.2%, compared with the corresponding period last year and amounted to approximately NIS 3.1 billion. Revenues from commissions increased by 5.3% and amounted to NIS 1.44 billion, while revenues from commissions from the activity of the capital market grew by 7.3%.
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Credit to the public, the core of banking activity, increased in the past year by 10.8% and amounted to NIS 102.2 billion. The Bank’s data also show that the housing loan portfolio grew by 13.8%, the credit portfolio for the small business sector increased by 11.5%, the credit portfolio for medium-sized businesses increased by 13.3%, the credit portfolio for large businesses increased by 11%, and credit for households increased by – 6%. In the fourth quarter, credit to the public increased by a total of 5.4%.
An interesting statistic is the assets portfolio of international clients, which grew at an impressive rate of 13.5% and amounted to NIS 601 billion.
The capital attributed to the Bank’s shareholders grew by 20.4% in 2021 (an increase of NIS 862 million) to NIS 10 billion. Tier 1 capital ratio reached 11.46% compared to the required regulatory ratio of 8.25%, a gap of about 3.2% (2.2% without regulatory capital relief), the highest gap in the system.
As stated, the Bank announced the distribution of a dividend of NIS 165 million, which constitutes half of the net profit in the fourth quarter of 2021, in addition to the dividend of NIS 215 million distributed in January this year. In 2021, the bank distributed a dividend of NIS 545 million, which brings the annual dividend yield to 6.07%.
Smadar Barber-Tzadik, CEO of the International Group: “The results presented by International in 2021 reflect the Bank’s growth in all areas of strategic focus, a growth that is reflected in an accelerated increase in both credit and customer assets. It is important to emphasize the high level of international profitability over time, while maintaining low volatility and maintaining high resilience.
“These days mark two years since the global health crisis, which is affecting the entire world in social and economic aspects.
“The Bank also made sure to develop a variety of innovative digital tools in all areas of activity, tools that facilitate and optimize service delivery, especially in the reality of social distance.
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