Reflects continued growth and strong 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 fourth quarter of the year.
Financial Highlights
— Net income of NIS 2,371 million in the year 2024; Return on equity 19%;
— Net income of NIS 573 million in the fourth quarter of 2024; Return on equity 17.4%
— Net credit to the public grew by 10% in 2024 and by 3.7% in the fourth quarter;
— Deposits from the public grew by 12.4% in 2024 and by 0.9% in the fourth quarter;
— Customers' assets grew by 25% in 2024 and by 5% in the fourth quarter, and reached NIS 839 billion;
— Equity attributed to the Bank's shareholders amounted to NIS 13.4 billion; an increase of 11.3% compared to the end of 2023; Tier 1 shareholders' equity ratio of 11.31%;
— The Bank's Board of Directors decided on the distribution of a dividend amounting to NIS 228 million, representing a return of 40% of the net income;
Financial Results of the Fourth Quarter and Full Year 2024
The First International Group's net income amounted to NIS 2,371 million in 2024, an increase of 9.2% compared with that of the previous year. The return on equity reached 19%.
In the fourth quarter of the year, the net income amounted to NIS 573 million, an increase of 14.8% over that of the previous year. The return on equity was 17.4%.
Credit to the public, net, amounted to NIS 129.4 billion, an increase of 10% in 2024 and an increase of 3.7% in the fourth quarter.
Deposits from the public amounted to NIS 214.8 billion, an increase of 12.4% in 2024 and 0.9% in the fourth quarter. The customers' assets portfolio increased by 25% in comparison with that of the previous year and by 5% in the fourth quarter of 2024, and amounted to NIS 839 billion.
Equity attributed to the Bank's shareholders increased to NIS 13.4 billion, an increase of 11.3% by comparison with the end of 2023. The tier 1 shareholders' equity ratio increased to 11.31%, 2.1 percentage points above the required regulatory amount. The liquidity coverage ratio remained high and stood at 165%.
Considering the directives of the Supervisor of Banks regarding Capital Planning and Profits Distribution Policy, the Bank's Board of Directors approved the distribution of a cash dividend to shareholders amounting to NIS 228 million, representing 40% of net income. The Board of Directors will continue to consider the implementation of the Bank's dividend distribution policy, according to which the bank will distribute up to 50% of its net profit each year, in light of ongoing developments and impacts on the economy and the Bank.
Income for credit losses amounted to NIS 16 million in 2024, compared with expenses of NIS 502 million in 2023. The expenses for credit losses were NIS 35 million in the fourth quarter of the year, of which the collective expense was NIS 41 million. The percentage of the expense to the average balance of credit to the public was 0.11%.
In terms of the qualitative credit portfolio, the non-performing loan (NPL) ratio (the balance of non-accrual debts or debts that are in arrears of 90 days or more, out of the balance of the credit to the public) declined, and reached 0.53% at the end of the fourth quarter, as compared to 0.6% at the end of 2023. The ratio is an indication of the quality of the credit portfolio.
Operating and other expenses amounted to NIS 2,977 million in 2024, an increase of 3.5% over 2023 and was primarily due to an improved efficiencies as well as the impact of inflation. The 2024 efficiency ratio stood at 44.1%.
Management Comment
Eli Cohen,First International Bank Israel's Chief Executive Officer,commented, “2024 presented many challenges for us, amid ongoing uncertainty. The Swords of Iron War negatively affected hundreds of thousands of Israelis, both directly and indirectly, and the Bank's staff and managers remained fully committed to providing optimal customer service throughout the period. Together with a series of benefits and reliefs for First International Bank's customers, we continued to support Israel's security forces and to society in general. This is primarily through an initiative we launched in the early days of the war, and which continues today. As part of this initiative, we stand by and supports the brave members of Kibbutz Nir Oz, who have suffered devasting losses in the attack.”
“I am proud and grateful to the thousands of First International Bank's staff members, for their devotion during this period of war, for their motivation, their determination and their dedicated service they continue to provide our customers.”
“Today, we published the Bank's financial results for 2024. Despite the significant challenges, the results reflect resilience and growth. This year, we have seen strong momentum in our core operations and strategic focus areas, with the credit portfolio growing by 10% and customer assets increasing by 25%. We have achieved growth through our activity with new customers and the continued expansion in our activity with existing customers, reinforcing our position as the leading bank in the capital markets sector. “
“The Bank's results are also marked through a high level of financial stability, reflected in the quality of the credit portfolio, as well as the high capital and liquidity ratios. This stability is of considerable importance in the current period of economic uncertainty.”
“We are continuing to improve our value proposition to customers, by providing both a personalized service and also through our digital capabilities. The First International Bank's customers are the first who can benefit from FibiWise, an innovative system we developed, that provides customers with a comprehensive financial view of their various accounts across all banks and financial institutions. Additionally, we also recently launched a preloaded wallet called Beyond, which, for the first time in the Israeli banking system, enables its holders to benefit from significant fixed benefits on their purchases.”
“I hope and pray that we will achieve calm in the security situation on the various fronts, for the safe return of the residents of the North and the South and for the return of all the hostages. I send my wishes for a speedy and full recovery to all the wounded and share my deepest condolences to the bereaved families.”
CONDENSED PRINCIPAL FINANCIAL INFORMATION AND PRINCIPAL EXECUTIONINDICESPrincipal financial ratios 2024 2023 2022 2021 2020 percentExecution indicesReturn on equity attributed to shareholders of the Bank 19.0 19.7 16.6 14.7 8.6Return on average assets 1.02 1.06 0.89 0.82 0.49Ratio of equity capital tier 1 11.31 11.35 10.42 11.46 11.18Leverage ratio 5.18 5.26 5.19 5.34 5.29Liquidity coverage ratio(1) 165 156 127 128 150Net stable funding ratio(2) 140 146 133 139Ratio of total income to average assets 2.9 3.2 2.9 2.6 2.7Ratio of interest income, net to average assets 2.0 2.4 2.0 1.6 1.7Ratio of fees to average assets 0.7 0.7 0.8 0.8 0.9Efficiency ratio 44.1 43.5 50.9 58.3 61.8Credit quality indicesRatio of provision for credit losses to credit to the public 1.25 1.36 1.02 1.05 1.38Ratio of total provision for credit losses (3)to credit to the public 1.38 1.50 1.12 1.13 1.48Ratio of non-accruing debts or in arrears of 90 days or more to credit to the public 0.53 0.60 0.48 **0.63 0.86Ratio of provision for credit losses to total non-accruing credit to the public 244.6 234.5 219.7 **244.0 221.3Ratio of net write-offs to average total credit to the public (0.04) 0.03 0.03 (0.01) 0.10Ratio of expenses (income) for credit losses to average total credit to the public (0.01) 0.42 0.11 (0.23) 0.52Principal data from the statement of income 2024 2023 2022 2021 2020 NIS millionNet profit attributed to shareholders of the Bank 2,371 2,172 1,667 1,405 750Interest Income, net 4,740 4,966 3,803 2,794 2,637Expenses (income) from credit losses (16) 502 123 (216) 464Total non-interest income 2,006 1,652 1,611 1,756 1,523Of which: Fees 1,553 1,502 1,489 1,444 1,371Total operating and other expenses 2,977 2,877 2,755 2,652 2,569Of which: Salaries and related expenses 1,739 *1,766 *1,700 *1,621 *1,552Primary net profit per share of NIS 0.05 par value (NIS) 23.63 21.65 16.62 14.00 7.48Principal data from the balance sheet 2024 2023 2022 2021 2020 NIS millionTotal assets 248,563 221,593 195,955 180,470 167,778of which: Cash and deposits with banks 77,175 68,866 57,130 57,370 57,802Securities 34,396 26,985 16,010 15,091 13,105Credit to the public, net 129,416 117,622 115,961 101,164 90,970Total liabilities 234,479 208,947 184,920 170,033 158,243of which: Deposits from the public 214,755 191,125 168,269 153,447 141,677Deposits from banks 2,508 4,314 4,821 5,144 2,992Bonds and subordinated capitalnotes 4,479 4,767 4,749 3,356 4,394Capital attributed to the shareholders of the Bank 13,430 12,071 10,559 10,003 9,141Additional data 2024 2023 2022 2021 2020Share price (0.01 NIS) 17,940 14,990 13,900 12,950 8,514Dividend per share (0.01 NIS) 986 795 942 543 125Average number of positions (4) 3,555 3,634 3,676 3,715 3,895* Reclassified.** Restated in respect of the new disclosure format on non-accruing debts instead of impaired debts, since January 1, 2022. Comparative data for 2020 have not been restated.(1) The ratio is computed in respect of the three months ended at the end of the reporting period.(2) According to instructions of the Bank of Israel the Net stable funding ratio was calculated since 2021. Therefor no comparative data is stated.(3) Including provision in respect of off-balance sheet credit instruments.(4) The number of positions includes conversion of overtime in terms of positions.
STATEMENT OF INCOME FOR THE YEAR ENDED DECEMBER 31(NIS million) Consolidated The Bank 2024 2023 2022 2024 2023 2022Interest Income 11,097 9,850 5,161 10,506 9,317 4,833Interest Expenses 6,357 4,884 1,358 6,251 4,801 1,339Interest Income, net 4,740 4,966 3,803 4,255 4,516 3,494Expenses (income) from credit losses (16) 502 123 (23) 484 118Net Interest Income after expenses from credit losses 4,756 4,464 3,680 4,278 4,032 3,376Non-Interest IncomeNon-Interest Financing income 432 142 113 432 161 111Fees 1,553 1,502 1,489 1,387 1,348 1,331Other income 21 8 9 78 62 66Total non-Interest income 2,006 1,652 1,611 1,897 1,571 1,508Operating and other expensesSalaries and related expenses 1,739 *1,766 *1,700 1,620 *1,644 *1,582Maintenance and depreciation of premises andequipment 359 *321 *312 334 *297 *288Amortizations and impairment of intangible assets 134 122 113 133 120 111Other expenses 745 668 630 717 642 604Total operating and other expenses 2,977 2,877 2,755 2,804 2,703 2,585Profit before taxes 3,785 3,239 2,536 3,371 2,900 2,299Provision for taxes on profit 1,383 1,090 884 1,228 973 801Profit after taxes 2,402 2,149 1,652 2,143 1,927 1,498The bank's share in profit of equity-basis investee, after taxes 74 113 74 228 245 169Net profit:Before attribution to non-controlling interests 2,476 2,262 1,726 2,371 2,172 1,667Attributed to non-controlling interests (105) (90) (59) – – -Attributed to shareholders of the Bank 2,371 2,172 1,667 2,371 2,172 1,667Consolidatedand The Bank 2024 2023 2022Primary profit per share attributed to the shareholders of the Bank NISNet profit per share of NIS 0.05 par value 23.63 21.65 16.62* Reclassified.Tel-Aviv, March 11, 2025
STATEMENT OF COMPREHENSIVE INCOMEFOR THE YEAR ENDED DECEMBER 31(NIS million) Consolidated 2024 2023 2022Net profit before attribution to non-controlling interests 2,476 2,262 1,726Net profit attributed to non-controlling interests (105) (90) (59)Net profit attributed to the shareholders of the Bank 2,371 2,172 1,667Other comprehensive income (loss) before taxes:Adjustments of available for sale bonds to fair value, net 31 213 (441)Adjustments of liabilities in respect of employee benefits(1) (60) 25 235Other comprehensive income (loss) before taxes (29) 238 (206)Related tax effect 9 (81) 71Other comprehensive income (loss) before attribution to non-controlling interests, after taxes (20) 157 (135)Less other comprehensive income (loss) attributed to non-controlling interests 3 9 (13)Other comprehensive income (loss) attributed to the shareholders of the Bank, aftertaxes (23) 148 (122)Comprehensive income before attribution to non-controlling interests 2,456 2,419 1,591Comprehensive income attributed to non-controlling interests (108) (99) (46)Comprehensive income attributed to the shareholders of the Bank 2,348 2,320 1,545(1) Mostly reflects adjustments in respect of actuarial assessments as of the end of the period regarding defined benefits pension plans, ofamounts recorded in the past in other comprehensive profit.
BALANCE SHEET AS AT DECEMBER 31(NIS million) Consolidated The Bank 2024 2023 2024 2023AssetsCash and deposits with banks 77,175 68,866 76,194 67,472Securities 34,396 26,985 31,996 25,940Securities which were borrowed 70 57 70 57Credit to the public 131,050 119,240 124,573 113,118Provision for Credit losses (1,634) (1,618) (1,533) (1,520)Credit to the public, net 129,416 117,622 123,040 111,598Credit to the government 1,496 1,055 789 369Investment in equity-basis investees 842 786 1,826 1,642Premises and equipment 867 877 847 855Intangible assets 363 328 360 324Assets in respect of derivative instruments 2,565 3,651 2,565 3,651Other assets(2) 1,373 1,366 1,290 1,293Total assets 248,563 221,593 238,977 213,201Liabilities and Shareholders' EquityDeposits from the public 214,755 191,125 207,007 184,082Deposits from banks 2,508 4,314 4,091 6,344Deposits from the Government 2,540 750 2,540 750Securities lent or sold under agreements to repurchase 2,304 – 2,304 -Bonds and subordinated capitalnotes 4,479 4,767 2,218 2,442Liabilities in respect of derivative instruments 2,729 3,784 2,732 3,790Other liabilities(1)(3) 5,164 4,207 4,655 3,722Total liabilities 234,479 208,947 225,547 201,130Capital attributed to the shareholders of the Bank 13,430 12,071 13,430 12,071Non-controlling interests 654 575 – -Total equity 14,084 12,646 13,430 12,071Total liabilities and shareholders' equity 248,563 221,593 238,977 213,201(1) Of which: provisions for credit losses in respect of off-balance sheet credit instruments in the amount of NIS 177 million and NIS 165 million(consolidated) and NIS 173 million and NIS 161 million (the Bank) as of December 31, 2024 and 2023, respectively.(2) Of which: other assets measured at fair value in the amount of NIS 1 million consolidated and the Bank (31.12.23 – NIS 10 millionconsolidated and the Bank).(3) Of which: other liabilities measured at fair value in the amount of NIS 1 million consolidated and the Bank (31.12.23 – NIS 11 millionconsolidated and the Bank).
STATEMENT OF CHANGES IN EQUITY(NIS million) Share capital Accumulated other Retained Total share- Non- controlling Total equity and premium (1) comprehensive earnings(2) holders' interests income (loss) equityBalance as at January 1, 2022 927 (181) 9,213 9,959 430 10,389Changes during 2022 -Net profit for the year – – 1,667 1,667 59 1,726Dividend – – (945) (945) – (945)Other comprehensive loss, after tax effect – (122) – (122) (13) (135)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 – – (10) (10) – (10)implementation in investee company*Balance as at January 1, 2023, following initial implementation 927 (303) 9,925 10,549 476 11,025Changes during 2023-Net 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 12,646Changes during 2024 -Net profit for the year – – 2,371 2,371 105 2,476Dividend – – (989) (989) (29) (1,018)Other comprehensive income (loss), after tax effect – (23) – (23) 3 (20)Balance as at December 31, 2024 927 (178) 12,681 13,430 654 14,084* 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 of Israel zucker.d@fibi.co.il +972-3-519-6224
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SOURCE First International Bank of Israel
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