Reflects continued growth and high profitability while maintaining financial stability
First International Bank of Israel (TASE: FIBI) one of Israel's major banking groups, today announced its results for the third quarter and nine-month period ended September 30, 2024.
Financial Highlights
Financial Highlights for the Third Quarter of 2024
— Net income of NIS 620 million and a return on equity of 19.4% in the third quarter of 2024;
— Net income of NIS 1,798 million and a return on equity of 19.4% for the first nine months of the year;
— Credit to the public grew by 6% compared to the end of 2023 and by 3.5% compared to the second quarter of the year;
— Deposits by the public grew by 11.4% compared to the end of 2023, and by 4.3% compared to the second quarter of the year;
— The portfolio of customers' assets grew by 19% compared to the end of 2023, and reached NIS 800 billion;
— Equity attributed to the Bank's shareholders was NIS 13 billion, an increase of 8.2% compared to the end of 2023;
— The tier 1 capital ratio was 11.41%;
— The Bank's Board of Directors decided to distribute a dividend in the amount of NIS 248 million, representing 40% of the net income.
Financial Results of the Third Quarter 2024
Net profitfor theFirst International Bank Group wasNIS 620 million in the third quarter of 2024, an increase of 36.3 % compared to the comparative quarter in the previous year. Returnon equity was 19.4%.
The net profitfor the first nine months of the year wasNIS 1,798 million, an increase of 7.5% compared to the comparative period in the previous year. The return on equity was19.4%.
Expense for credit losseswasNIS 22 million in the third quarter, amounting to0.07% of the average balance of credit to the public. Income forcredit lossesamounted to NIS 51 million in the first nine months of the year, primarily from debt recovery. In the corresponding period of last year, expensesof NIS 336 million were recorded which was due to an increase in collective provisions because of concerns over macroeconomicimpacts, amid uncertainty.
High-quality credit portfolio:the NPL (non-performing loan) ratio remained stable and reached 0.57% at the end of the third quarter. This reflectsthe quality of the credit portfolio, (the balance of debtsnot accruingor overdue by90 days or more out of the totalcredit to the public). The totalcoverage ratio (the ratio of the totalcredit loss provisionsto the total credit to the public) stood at 1.41%, compared to 1.37% in the comparative period lastyear.
The operating and other expenses were NIS 2,240 million in the first nine months of the year, an increase of 2% compared to the comparative period in the previous year, mainly due toan increase in other expenses: IT-related, donations, telecommunicationsand advertising. The efficiency ratio stood at 44.5%.
Credit to the public amounted to NIS 126.4 billion, an increase of 6% compared to the end of 2023. There was an increase in the creditof 3.5% in the third quarter, compared to the second quarter of the year.
Deposits by the public amounted to NIS 213 billion, an increase of 11.4% compared to the end of 2023,and 4.3% compared to the second quarter.
The totalcustomers' assets portfolioincreased by 26% year-over-year and by 19% compared to the end of 2023, to approximately 800 billion.
Equity attributed to shareholders in the Bankincreased toNIS 13 billion, an increase of 8.2% compared to the end of 2023. The tier 1 capitalratio reached 11.41%, approximately -2.2% above the regulatory requirement, reflectingthe highest capital surplus in the Israeli banking system. The liquidity coverageratio is high and stands at 171%.
Considering the requestsof the Banking Supervisor regarding capitalplanning and profits distribution policies,the Bank's Board of Directors decided to approve the distribution of a cash dividend to the shareholders for NIS 248 million representing40% of the net income.The Bank's Board of Directors will continue to review the implementation of the Bank's dividend distribution policy in light of ongoing developments and their impact on the Israeli economy and on the Bank.
Management Comment
Eli Cohen, CEO of First International Bank, commented: ,”The Bank's reports reflect a growth trend both on the passive side, including deposits and securities of the public, which reached a record NIS 800 billion, and also on the active side,with a considerable increase in the credit portfolio, which has been achieved while maintaining the qualityof the underwriting and portfoliodiversification.
“Amid economicuncertainty and the ongoingmulti-front warin Israel, the First International Bank maintained high capital and liquiditycushions, ensuring resilience and ourability to continue supportingour customers. The Bank is continuing to provide benefits and relief measuresfor customers to helpthem navigatethe current challenging period.
“I am proud to say that the First International Bank's customers are the most satisfied among bankcustomers in Israel, reporting highsatisfaction with the Bank, the professionalism of its servicesand their willingnessto recommend the bankto their friends. This is evidenced viacustomer surveys, including therecentMarketest survey.This reflectsthe high quality service and competitiveness of the First International Bank, as well asthe professionalism and the dedication of ourGroup's employees, all of whomhave contributed to the achievement.
“We recentlyannounced a number of managementchanges at the Bank: Vered Golan wasappointed to the position of Head of the CorporateDivision, Dr. Moriah Hoftman-Doron wasappointed to the position of Chief Legal Counsel,and Liora Shechter was appointed CEO of Mataf. I wish considerable success to the new members of ourmanagementteam.”
CONDENSED PRINCIPAL FINANCIAL INFORMATION AND PRINCIPAL EXECUTION INDICESPrincipal financial ratios For the nine months For the year ended ended September 30, December 31, 2024 2023 2023 in %Principal execution indicesReturn on equity attributed to shareholders of the Bank(1) 19.4 20.5 19.7Return on average assets(1) 1.05 1.10 1.06Ratio of equity capital tier 1 11.41 10.84 11.35Leverage ratio 5.17 5.30 5.26Liquidity coverage ratio 171 142 156Net stable funding ratio 142 138 146Ratio of total income to average assets(1) 2.9 3.3 3.2Ratio of interest income, net to average assets (1) 2.1 2.5 2.4Ratio of fees to average assets (1) 0.7 0.7 0.7Efficiency ratio 44.5 43.6 43.5Credit quality indicesRatio of provision for credit losses to credit to the public 1.29 1.25 1.36Ratio of total provision for credit losses (2)to credit to the public 1.41 1.37 1.50Ratio of non-accruing debts or in arrears of 90 days or more to credit to the public 0.57 0.49 0.60Ratio of provision for credit losses to total non-accruing credit to the public 230.5 263.8 234.5Ratio of net write-offs to average total credit to the public (1) (0.06) – 0.03Ratio of expenses (income) for credit losses to average total credit to the public (1) (0.06) 0.38 0.42Principal data from the statement of income For the nine months ended September 30, 2024 2023 NIS millionNet profit attributed to shareholders of the Bank 1,798 1,673Interest Income, net 3,601 3,820Expenses (income) from credit losses (51) 336Total non-Interest income 1,436 1,216Of which: Fees 1,123 1,131Total operating and other expenses 2,240 2,197Of which: Salaries and related expenses 1,302 1,353Primary net profit per share of NIS 0.05 par value (NIS) 17.92 16.67Principal data from the balance sheet 30.9.24 30.9.23 31.12.23 NIS millionTotal assets 242,512 210,673 221,593of which: Cash and deposits with banks 81,440 61,659 68,866Securities 28,860 22,043 26,985Credit to the public, net 124,749 118,577 117,622Total liabilities 228,823 198,542 208,947of which: Deposits from the public 212,907 181,274 191,125Deposits from banks 2,631 3,824 4,314Bonds and subordinated capitalnotes 4,474 4,751 4,767Capital attributed to the shareholders of the Bank 13,066 11,583 12,071Additional data 30.9.24 30.9.23 31.12.23Share price (0.01 NIS) 15,410 16,360 14,990Dividend per share (0.01 NIS) 739 706 795(1) Annualized.(2) Including provision in respect of off-balance sheet credit instruments.
CONSOLIDATED STATEMENT OF INCOME(NIS million) For the three months For the nine months For the year Ended ended September 30 ended September 30 December 31 2024 2023 2024 2023 2023 (unaudited) (unaudited) (unaudited) (unaudited) (audited)Interest Income 2,955 2,590 8,410 7,289 9,850Interest Expenses 1,690 1,363 4,809 3,469 4,884Interest Income, net 1,265 1,227 3,601 3,820 4,966Expenses (income) from credit losses 22 165 (51) 336 502Net Interest Income after expenses from credit losses 1,243 1,062 3,652 3,484 4,464Non- Interest IncomeNon-Interest Financing income 153 (1) 300 78 142Fees 396 375 1,123 1,131 1,502Other income 3 – 13 7 8Total non- Interest income 552 374 1,436 1,216 1,652Operating and other expensesSalaries and related expenses 430 438 1,302 1,353 1,746Maintenance and depreciation of premises andequipment 91 89 264 256 341Amortizations and impairment of intangible assets 36 31 99 91 122Other expenses 220 175 575 497 668Total operating and other expenses 777 733 2,240 2,197 2,877Profit before taxes 1,018 703 2,848 2,503 3,239Provision for taxes on profit 390 247 1,033 869 1,090Profit after taxes 628 456 1,815 1,634 2,149The bank's share in profit of equity-basis investee, after taxes 22 21 62 105 113Net profit:Before attribution to non‑controlling interests 650 477 1,877 1,739 2,262Attributed to non‑controlling interests (30) (22) (79) (66) (90)Attributed to shareholders of the Bank 620 455 1,798 1,673 2,172 NISPrimary profit per share attributed to the shareholdersof the BankNet profit per share of NIS 0.05 par value 6.18 4.53 17.92 16.67 21.65
STATEMENT OF COMPREHENSIVE INCOME(NIS million) For the three months For the nine months For the year Ended ended September 30 ended September 30 December 31 2024 2023 2024 2023 2023 (unaudited) (unaudited) (unaudited) (unaudited) (audited)Net profit before attribution to non‑controlling interests 650 477 1,877 1,739 2,262Net profit attributed to non‑controlling interests (30) (22) (79) (66) (90)Net profit attributed to the shareholders of the Bank 620 455 1,798 1,673 2,172Other comprehensive income (loss) before taxes:Adjustments of available for sale bonds to fair value, net 129 52 (115) 78 213Adjustments of liabilities in respect of employee benefits(1) (2) 34 10 37 25Other comprehensive income (loss) before taxes 127 86 (105) 115 238Related tax effect (49) (29) 41 (40) (81)Other comprehensive income (loss) before attribution to non‑controlling interests, aftertaxes 78 57 (64) 75 157Less other comprehensive income (loss) attributed to non‑controlling interests 3 1 (2) 6 9Other comprehensive income (loss) attributed to the shareholders of the Bank, aftertaxes 75 56 (62) 69 148Comprehensive income before attribution to non‑controlling interests 728 534 1,813 1,814 2,419Comprehensive income attributed to non‑controlling interests (33) (23) (77) (72) (99)Comprehensive income attributed to the shareholders of the Bank 695 511 1,736 1,742 2,320(1) Mostly reflects adjustments in respect of actuarial assessments as of the end of the period regarding defined benefits pension plans and deduction of amounts recorded in the past in other comprehensive income.
CONSOLIDATED BALANCE SHEET(NIS million) September 30, December 31, 2024 2023 2023 (unaudited) (unaudited) (audited)AssetsCash and deposits with banks 81,440 61,659 68,866Securities 28,860 22,043 26,985Securities borrowed 147 155 57Credit to the public 126,374 120,073 119,240Provision for Credit losses (1,625) (1,496) (1,618)Credit to the public, net 124,749 118,577 117,622Credit to the government 1,611 1,015 1,055Investment in investee company 854 776 786Buildings and equipment 852 871 877Intangible assets 350 305 328Assets in respect of derivative instruments 2,308 3,940 3,651Other assets(2) 1,341 1,332 1,366Total assets 242,512 210,673 221,593Liabilities and CapitalDeposits from the public 212,907 181,274 191,125Deposits from banks 2,631 3,824 4,314Deposits from the Government 689 665 750Securities lent or sold under agreements to repurchase 1,542 – -Bonds and subordinated capitalnotes 4,474 4,751 4,767Liabilities in respect of derivative instruments 2,086 3,496 3,784Other liabilities(1)(3) 4,494 4,532 4,207Total liabilities 228,823 198,542 208,947Shareholders' equity 13,066 11,583 12,071Non-controlling interests 623 548 575Total capital 13,689 12,131 12,646Total liabilities and capital 242,512 210,673 221,593(1) Of which: provision for credit losses in respect of off-balance sheet credit instruments in the amount of NIS 160 million and NIS 150 million and NIS 165 million at 30.9.24, 30.9.23 and 31.12.23, respectively.(2) Of which: other assets measured at fair value in the amount of NIS 16 million and NIS 13 million and NIS 10 million at 30.9.24, 30.9.23 and 31.12.23, respectively.(3) Of which: other liabilities measured at fair value in the amount of NIS 48 million and NIS 26 million and NIS 11 million at 30.9.24, 30.9.23 and 31.12.23, respectively.
STATEMENT OF CHANGES IN EQUITY(NIS million) For the three months ended September 30, 2024 (unaudited) Share Accumulated Retained Total Non- Total capital and other earnings (2) share-holders' controlling capital premium (1) comprehensive equity interests income (loss)Balance as of June 30, 2024 927 (292) 11,980 12,615 590 13,205Net profit for the period – – 620 620 30 650Dividend – – (244) (244) – (244)Other comprehensive income, after tax effect – 75 – 75 3 78Balance as at September 30, 2024 927 (217) 12,356 13,066 623 13,689 For the three months ended September 30, 2023 (unaudited) Share Accumulated Retained Total Non- Total capital and other earnings (2) share-holders' controlling capital premium (1) comprehensive equity interests income (loss)Balance as of June 30, 2023 927 (290) 10,655 11,292 525 11,817Net profit for the period – – 455 455 22 477Dividend – – (220) (220) – (220)Other comprehensive income, after tax effect – 56 – 56 1 57Balance as at September 30, 2023 927 (234) 10,890 11,583 548 12,131 For the nine months ended September 30, 2024 (unaudited) Share Accumulated Retained Total Non- Total capital and other earnings (2) share-holders' controlling capital premium (1) comprehensive equity interests lossBalance as at December 31, 2023 (audited) 927 (155) 11,299 12,071 575 12,646Net profit for the period – – 1,798 1,798 79 1,877Dividend – – (741) (741) (29) (770)Other comprehensive loss, after tax effect – (62) – (62) (2) (64)Balance as at September 30, 2024 927 (217) 12,356 13,066 623 13,689 For the nine months ended September 30, 2023 (unaudited) Share Accumulated Retained Total Non- Total capital and other earnings (2) share-holders' controlling capital premium (1) comprehensive equity interests income (loss)Balance as at December 31, 2022 (audited) 927 (303) 9,935 10,559 476 11,035Adjustment of the opening balance, net of tax, due to the effect of initial implementation in investee company* – – (10) (10) – (10)Adjusted balance at January 1, 2023, following initial implementation 927 (303) 9,925 10,549 476 11,025Net profit for the period – – 1,673 1,673 66 1,739Dividend – – (708) (708) – (708)Other comprehensive income, after tax effect – 69 – 69 6 75Balance as at September 30, 2023 927 (234) 10,890 11,583 548 12,131STATEMENT OF CHANGES IN EQUITY(CONT'D)(NIS million) For the year ended December 31, 2023 (audited) Share Accumulated Retained Total Non- Total capital and other earnings(2) controlling capital premium(1) comprehensive interests income (loss)Balance as at December 31, 2022 927 (303) 9,935 10,559 476 11,035Adjustment of the opening balance, net of tax, due to the effect of initial implementation in investee company * – – (10) (10) – (10)Adjusted balance at January 1, 2023, following initial implementation 927 (303) 9,925 10,549 476 11,025Net profit for the year – – 2,172 2,172 90 2,262Dividend – – (798) (798) – (798)Other comprehensive income, after tax effect – 148 – 148 9 157Balance as at December 31, 2023 927 (155) 11,299 12,071 575 12,646* Cumulative effect of the initial implementation of US accounting principles in the matter of financial instruments – credit losses (ASC-326).(1) Including share premium of NIS 313 million (as from 1992 onwards).(2) Including an amount of NIS 2,391 million which cannot be distributed as dividend.
Contact:Dafna ZuckerFirst International Bank ofIsraelZucker.d@fibi.co.il+972-3-519-6224
https://c212.net/c/img/favicon.png?sn=IO65237&sd=2024-11-25
View original content:https://www.prnewswire.com/news-releases/first-international-bank-of-israel-reports-financial-results-for-the-third-quarter-of-2024-302315188.html
SOURCE First International Bank of Israel
https://rt.newswire.ca/rt.gif?NewsItemId=IO65237&Transmission_Id=202411250204PR_NEWS_USPR_____IO65237&DateId=20241125