Net profit of NIS 1,171 million ($294 million) for Leumi in the first quarter of 2015
Net profit of NIS 1,171 million ($294 million) in the first quarter of 2015. Excluding a one-time profit from the sale of Israel Corp. shares, the net profit amounted to NIS 753 million ($189 million), reflecting a net return on equity of 11.7% (on an annual basis).
In accordance with the Bank's strategy:
Credit to households and small businesses increased by 1.1% compared with 31.12.14, and by 8.1% compared with the corresponding period last year.
Credit to middle-market companies increased by 0.4% compared with 31.12.14, and by 7.8% compared with the corresponding period last year.
Credit loss expenses amounted to NIS 81 million ($20 million), reflecting 0.13% of the bank's credit portfolio.
The capital adequacy ratio (in Basel lll terms) reached 13.84%, of which the core capital ratio was 9.37%, compared with 9.21% as of 31.12.14.
The Bank made a first-time implementation in its financial statements of US GAAP rules on employee rights. Applying the rules affected the increase in total pension liabilities (NIS 4.3 billion ($1.08 billion)), the decrease in equity (NIS 2.7 billion ($0.68 billion)) and salary expenses. Thus, despite maintaining the moderation of salary expenses compared with the first quarter of 2014, an increase is reported in total salary expenses, mainly due to the new standards.