In order to bring you the best possible user experience, this site uses Javascript. If you are seeing this message, it is likely that the Javascript option in your browser is disabled. For optimal viewing of this site, please ensure that Javascript is enabled for your browser.
 

Press Releases

Leumi Reports Q4 and Full Year 2017 Results: Leumi reports a net profit of NIS 3.2 billion ($922 million) in 2017, return on equity reached 9.8%

- Return on equity in the fourth quarter of 2017 reached 10.8%.

- Total dividend payments in respect of 2017 reached some NIS 1 billion ($288 million).

- The Bank announces a share buyback plan in the amount of up to NIS 700 million ($202 million).

06.03.2018

 

  • High return on equity - Return on equity increased to 9.8% in 2017. The increase mainly resulted from core business activities – an increase in income alongside a decrease in expenses. Return on equity in the fourth quarter of 2017 reached 10.8%
    .
  • Net profit of NIS 3.2 billion ($922 million) in 2017, compared with NIS 2.8 billion ($808 million) in 2016, reflecting an increase of 13.7%. Net profit in the fourth quarter of 2017 totaled NIS 854 ($246 million).

    When excluding non-recurring items, the return on equity in 2017 was 9.3% compared to 8.4% in the corresponding period last year. Non-recurring items: in 2017 – mainly the profit from a property sale in light of efficiency processes. In 2016 - income from the sale of Visa Europe, income from the insurance refund in respect of the settlement regarding U.S. Customers, one-time salary expenses and non-recurring tax expenses
     
  • Common equity tier I capital ratio at December 31, 2017 reached 11.43%.
     
  • The Bank announces a share buyback plan in the amount of up to NIS 700 million ($202 million).
  • The Bank's Board of Directors approved the distribution of a dividend comprising 40% of the net income of the fourth quarter of 2017, amounting to NIS 342 million ($99 million). The accumulated dividend for 2017 totaled NIS 969 million ($279 million).
     
  • Increase in income – In 2017, net interest income and non-interest income increased by 4.2% compared with the corresponding period last year.
     
  • Decrease in expenses – In 2017, salary expenses decreased by NIS 150 million ($43 million) compared with the corresponding period last year, reflecting a decrease of 2.8%. the Bank's workforce decreased by 435 employees in 2017, while the workforce decreased by over 2,900 employees in the past 6 years. Operating and other expenses, when excluding the insurance refund reported last year, decreased by 4.8%.
     
  • Leumi continues to maintain the highest quality loan portfolio in the Israeli banking system – The Bank continues to implement a cautious credit policy, as in recent years. This policy is reflected in a credit loss rate of only 0.06% in 2017.
     

In Accordance with the Bank's Strategy:
 

  • Leumi continues to lead the digital banking field in Israel. Alongside the development of 'Leumi Digital', the Bank successfully launched 'Pepper' in 2017, offering a unique and groundbreaking banking experience, which is expected to further expand its operations in 2018.
     
  • Leumi continues to lead the Israeli high-tech banking sector through 'LeumiTech', which today handles the financial operations of over 60% of Israel's high-tech companies.
     
  • The Bank continues to selectively grow its loan portfolio, while maintaining a balanced risk management policy. Net loans to the public as of December 31, 2017 increased by NIS 6 billion ($1.7 billion) compared with December 31, 2016. When excluding the effect of the shekel appreciation, the increase in loans amounted to NIS 9 billion ($2.6 billion).

 

Additional Events Expected During 2018:

 

  • The establishment of an Operations Department – the Bank is conducting a strategic examination of centralizing the operations of various Bank units during 2019, within a dedicated Operations Division which will offer services to all business lines. Within this framework, the Bank is currently setting up an Operations Department within the Retail Banking Division, which will incorporate additional units from other divisions.
     
  • Appointment of accountants – the Bank's Audit Committee, in coordination with the Bank of Israel, has decided to initiate a new procedure in 2018, to appoint independent auditors for the Bank for the year 2019 or 2020. The decision was made, inter alia, following the intensive procedure to select the Bank's auditors for 2018, which was extensive and complex.
     
  • The Bank's share buyback plan - On March 5, 2018, the Bank's Board of Directors approved a plan to buyback the Bank's shares for a total of up to NIS 700 million ($202 million), from April 1, 2018 to March 31, 2019. The buyback is subject to meeting - at each buyback date - a Tier 1 equity ratio of no less than 10.9%, in accordance with the most recent financial statements, after having taken into account the buyback plan.


An Improvement in Balance Sheet Parameters:

 

  • The Group's total shareholders' equity as of December 31, 2017 amounted to NIS 33.2 billion ($9.6 billion), compared with NIS 31.3 billion ($9.0 billion) as of December 31, 2016, an increase of 5.8%.
     
  • The leverage ratio as of December 31, 2017 reached 6.94%, compared to the Bank of Israel's minimal threshold of 6%.
     
  • The liquidity coverage ratio as of December 31, 2017 reached 122%, compared to the Bank of Israel's minimal threshold of 100%.
     
  • Net loans to the public as of December 31, 2017 increased to NIS 268.0 billion ($77.3 billion), compared with NIS 262.0 billion ($75.6 billion) as of December 31, 2016.
     
  • Deposits from the public as of December 31, 2017 increased to NIS 362.5 billion ($104.6 billion), compared with NIS 346.9 billion ($100.1 billion) as of December 31, 2016.
     

For the full report >>