Net profit of NIS 1.4 billion ($364 million) in the first half of 2016

• Net return on equity: 13.7% in the second quarter of 2016 compared with 7.8% in the corresponding period last year; and 10.1% in the first half of 2016 compared with 13.1% in the corresponding periods last year.
• The core capital ratio (Tier I) reached 10.40%, a significant increase compared with a ratio of 9.58% as of December 31, 2015.
• The capital adequacy ratio reached 14.68%, an increase compared with a ratio of 13.74% as of December 31, 2015.
• Credit loss income in the first half of 2016 amounted to NIS 277 million ($72 million), reflecting 0.21% of the bank's credit portfolio. This is compared with credit loss expenses amounting to NIS 93 million ($24.2 million) in the corresponding period last year, which then reflected 0.07% of the bank's credit portfolio.
• Net Credit to the public as of June 30, 2016 amounted to NIS 266.0 billion ($69.2 billion), compared with NIS 261.4 billion ($68.0 billion) as of December 31, 2015 (an increase of 1.8%), and NIS 254.5 billion ($66.2 billion) as of June 30, 2015 (an increase of 4.5%).

Implementation of the Bank's strategy:

• In accordance with the Bank's efficiency program, which was approved by the Board of Directors on June 1, 2016, approximately 673 employees have signed an early retirement agreement and are expected to end their employment by December 30, 2016.
• A decrease of NIS 52 million ($13.5 million) in operating expenses compared with the first half of 2015 (a decrease of 1.2%), mainly resulting from a decrease in salary expenses.
• Leumi continues to lead the digital banking field in Israel. During the second quarter of 2016, the Bank's digital banking platform - 'Pepper' - has been launched to Friends & Family and is expected to be fully launched by the end of 2016.

Improvement in business activity:

• Increase in credit to targeted sectors
  • Retail Credit in Israel (personal customers, private banking, micro and small businesses) increased by NIS 1.4 billion ($364 million) compared with December 31, 2015 (an increase of 1%). 
  • Credit to Middle-market companies increased by NIS 0.9 billion ($234 million) compared with December 31, 2015 (an increase of 3.6%).
• An increase of NIS 12.2 billion ($3.17 billion) in Retail Deposits in Israel (personal customers, private banking, micro and small businesses) compared with December 31, 2015 (an increase of 7%). 

Leumi presents an improvement in balance sheet parameters compared with the corresponding period last year:

• The Group's equity as of June 30, 2016 amounted to NIS 30.1 billion ($7.8 billion), compared with NIS 28.3 billion ($7.4 billion) as of June 30, 2015 (an increase of 6.3%), and NIS 28.8 billion ($7.5 billion) as of December 31, 2015 (an increase of 4.5%).
• Total assets of the Group as of June 30, 2016 amounted to NIS 436.4 billion ($113.5 billion), compared with NIS 393.8 billion ($102.4 billion) as of June 30, 2015 (an increase of 10.8%), and NIS 416.5 billion ($108.3 billion) as of December 31, 2015 (an increase of 4.8%).
• Net Credit to the public as of June 30, 2016 amounted to NIS 266.0 billion ($69.2 billion), compared with NIS 254.5 billion ($66.2 billion) as of June 30, 2015 (an increase of 4.5%), and NIS 261.4 billion ($68.0 billion) as of December 31, 2015 (an increase of 1.8%).
• Deposits of the public as of June 30, 2016 amounted to NIS 340.0 billion ($88.4 billion), compared with NIS 304.0 billion ($79.0 billion) as of June 30, 2015 (an increase of 11.8%), and NIS 328.7 billion ($85.5 billion) as of December 31, 2015 (an increase of 3.4%).