Net Earnings of NIS 49.2 million for the Arab Israel (ai) Bank
August 19th, 2009
Net earnings of NIS 49.2 million for the ai Bank during H1/09
Q2/09 net earnings were NIS 21.8 million
The ai Bank published its H1/09 financial statements today. Net earnings for the period were NIS 49.2 million, compared with NIS 47.7 million in H1/08, an increase of 3.1%. Q2/09 net earnings were NIS 21.8 million, compared with NIS 24.4 million in Q2/08, a decrease of 10.7%. The net return on equity capital was an annualized 29.2%, compared with 28.5% in H1/08.
The net earnings change in H1/09 was affected primarily by the following issues:
• An NIS 4.8 million increase in net interest income before the provision for doubtful debts, as a result of an increased volume of transactions between periods.
• An NIS 5.2 million increase in the provision for doubtful debts, which amounted to NIS 13.0 million, compared with NIS 7.8 million in the corresponding 2008 period.
• An NIS 6.6 million reduction in operational commissions, primarily as a result of the commissions reform.
• An NIS 8.5 million reduction in salary expenses primarily because of a rise in designated earnings that are used to cover severance pay and pension liabilities.
The bank's total H1/09 revenue was NIS 170.8 million, compared with NIS 170.2 million in H1/08, an increase of 0.4%.
About the Bank
The Leumi Group's ai Bank provides banking and financial services in the Arab sector in the North of Israel and in the Northern triangle. The bank is involved in the Arabic society and community, primarily in the educational, cultural, sport and health fields. As a part of its involvement, the bank has supported the "El Rawad" program which aids the absorption of young academics in the labor market in the fields of their expertise for the third successive year; the "Bene Sachnin" Football Club; the Mifneh Music Project in cooperation with Tel Aviv University's School of Music and the Israel Philharmonic Orchestra; and the "Young Entrepreneurs" Project, as a part of the national project in which the bank adopts a number of youth groups in the Arabic Sector.