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 INDICES
Principal financial ratios For the nine months For the year ended
ended September 30, December 31,
2024 2023 2023
in %
Principal execution indices
Return on equity attributed to shareholders of the Bank(1) 19.4 20.5 19.7
Return on average assets(1) 1.05 1.10 1.06
Ratio of equity capital tier 1 11.41 10.84 11.35
Leverage ratio 5.17 5.30 5.26
Liquidity coverage ratio 171 142 156
Net stable funding ratio 142 138 146
Ratio of total income to average assets(1) 2.9 3.3 3.2
Ratio of interest income, net to average assets (1) 2.1 2.5 2.4
Ratio of fees to average assets (1) 0.7 0.7 0.7
Efficiency ratio 44.5 43.6 43.5
Credit quality indices
Ratio of provision for credit losses to credit to the public 1.29 1.25 1.36
Ratio of total provision for credit losses (2)to credit to the public 1.41 1.37 1.50
Ratio of non-accruing debts or in arrears of 90 days or more to credit to the public 0.57 0.49 0.60
Ratio of provision for credit losses to total non-accruing credit to the public 230.5 263.8 234.5
Ratio of net write-offs to average total credit to the public (1) (0.06) - 0.03
Ratio of expenses (income) for credit losses to average total credit to the public (1) (0.06) 0.38 0.42
Principal data from the statement of income For the nine months
ended September 30,
2024 2023
NIS million
Net profit attributed to shareholders of the Bank 1,798 1,673
Interest Income, net 3,601 3,820
Expenses (income) from credit losses (51) 336
Total non-Interest income 1,436 1,216
Of which: Fees 1,123 1,131
Total operating and other expenses 2,240 2,197
Of which: Salaries and related expenses 1,302 1,353
Primary net profit per share of NIS 0.05 par value (NIS) 17.92 16.67
Principal data from the balance sheet 30.9.24 30.9.23 31.12.23
NIS million
Total assets 242,512 210,673 221,593
of which: Cash and deposits with banks 81,440 61,659 68,866
Securities 28,860 22,043 26,985
Credit to the public, net 124,749 118,577 117,622
Total liabilities 228,823 198,542 208,947
of which: Deposits from the public 212,907 181,274 191,125
Deposits from banks 2,631 3,824 4,314
Bonds and subordinated capitalnotes 4,474 4,751 4,767
Capital attributed to the shareholders of the Bank 13,066 11,583 12,071
Additional data 30.9.24 30.9.23 31.12.23
Share price (0.01 NIS) 15,410 16,360 14,990
Dividend 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 9,850
Interest Expenses 1,690 1,363 4,809 3,469 4,884
Interest Income, net 1,265 1,227 3,601 3,820 4,966
Expenses (income) from credit losses 22 165 (51) 336 502
Net Interest Income after expenses from credit losses 1,243 1,062 3,652 3,484 4,464
Non- Interest Income
Non-Interest Financing income 153 (1) 300 78 142
Fees 396 375 1,123 1,131 1,502
Other income 3 - 13 7 8
Total non- Interest income 552 374 1,436 1,216 1,652
Operating and other expenses
Salaries and related expenses 430 438 1,302 1,353 1,746
Maintenance and depreciation of premises andequipment 91 89 264 256 341
Amortizations and impairment of intangible assets 36 31 99 91 122
Other expenses 220 175 575 497 668
Total operating and other expenses 777 733 2,240 2,197 2,877
Profit before taxes 1,018 703 2,848 2,503 3,239
Provision for taxes on profit 390 247 1,033 869 1,090
Profit after taxes 628 456 1,815 1,634 2,149
The bank's share in profit of equity-basis investee, after taxes 22 21 62 105 113
Net profit:
Before attribution to non‑controlling interests 650 477 1,877 1,739 2,262
Attributed to non‑controlling interests (30) (22) (79) (66) (90)
Attributed to shareholders of the Bank 620 455 1,798 1,673 2,172
NIS
Primary profit per share attributed to the shareholdersof the Bank
Net 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 2,262
Net 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 2,172
Other comprehensive income (loss) before taxes:
Adjustments of available for sale bonds to fair value, net 129 52 (115) 78 213
Adjustments of liabilities in respect of employee benefits(1) (2) 34 10 37 25
Other comprehensive income (loss) before taxes 127 86 (105) 115 238
Related tax effect (49) (29) 41 (40) (81)
Other comprehensive income (loss) before attribution to non‑controlling interests, aftertaxes 78 57 (64) 75 157
Less other comprehensive income (loss) attributed to non‑controlling interests 3 1 (2) 6 9
Other comprehensive income (loss) attributed to the shareholders of the Bank, aftertaxes 75 56 (62) 69 148
Comprehensive income before attribution to non‑controlling interests 728 534 1,813 1,814 2,419
Comprehensive 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)
Assets
Cash and deposits with banks 81,440 61,659 68,866
Securities 28,860 22,043 26,985
Securities borrowed 147 155 57
Credit to the public 126,374 120,073 119,240
Provision for Credit losses (1,625) (1,496) (1,618)
Credit to the public, net 124,749 118,577 117,622
Credit to the government 1,611 1,015 1,055
Investment in investee company 854 776 786
Buildings and equipment 852 871 877
Intangible assets 350 305 328
Assets in respect of derivative instruments 2,308 3,940 3,651
Other assets(2) 1,341 1,332 1,366
Total assets 242,512 210,673 221,593
Liabilities and Capital
Deposits from the public 212,907 181,274 191,125
Deposits from banks 2,631 3,824 4,314
Deposits from the Government 689 665 750
Securities lent or sold under agreements to repurchase 1,542 - -
Bonds and subordinated capitalnotes 4,474 4,751 4,767
Liabilities in respect of derivative instruments 2,086 3,496 3,784
Other liabilities(1)(3) 4,494 4,532 4,207
Total liabilities 228,823 198,542 208,947
Shareholders' equity 13,066 11,583 12,071
Non-controlling interests 623 548 575
Total capital 13,689 12,131 12,646
Total 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 13,205
Net profit for the period - - 620 620 30 650
Dividend - - (244) (244) - (244)
Other comprehensive income, after tax effect - 75 - 75 3 78
Balance 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 11,817
Net profit for the period - - 455 455 22 477
Dividend - - (220) (220) - (220)
Other comprehensive income, after tax effect - 56 - 56 1 57
Balance 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
loss
Balance as at December 31, 2023 (audited) 927 (155) 11,299 12,071 575 12,646
Net profit for the period - - 1,798 1,798 79 1,877
Dividend - - (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 11,035
Adjustment 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 11,025
Net profit for the period - - 1,673 1,673 66 1,739
Dividend - - (708) (708) - (708)
Other comprehensive income, after tax effect - 69 - 69 6 75
Balance as at September 30, 2023 927 (234) 10,890 11,583 548 12,131
STATEMENT 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 11,035
Adjustment 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 11,025
Net profit for the year - - 2,172 2,172 90 2,262
Dividend - - (798) (798) - (798)
Other comprehensive income, after tax effect - 148 - 148 9 157
Balance 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
COMTEX_460157423/1005/2024-11-25T02:05:15