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Press Releases

Leumi Reports First-Quarter 2019 Net Income of NIS 1,092 Million ($301 million) and 12.7% Return on Equity

The Bank will distribute a dividend of 40% of its net income, totaling NIS 437 million ($120 million);
Leumi approved an additional share buyback plan totaling NIS 700 million ($193 million)

27.05.2019

 

  • Net income in the first quarter of 2019 reached NIS 1,092 million ($301 million), compared with NIS 730 million ($201 million) in the same period last year - a 50% year-over-year increase.
     
  • Return on equity in the first quarter of 2019 was 12.7% (annualized), compared with 9.0% in the same period last year. Excluding the effect of the sale of Leumi Card, the return on equity in the first quarter was 10.1%, compared with 8.6% in the same period last year.
     
  • Common Equity Tier 1 capital ratio as at March 31, 2019 was 11.65%, and the total capital ratio reached 15.07%.
     
  • Efficiency ratio continues to improve – A 53% ratio in the first quarter of 2019, compared with 63.8% in the same period last year. Excluding the effect of the sale of Leumi Card, the efficiency ratio in the first quarter of 2019 was 57.9%, compared with 63.7% in the same period last year.
  • Leumi’s credit portfolio continues to be of the highest quality in the Israeli banking system - credit loss expenses in the first quarter of 2019 were negligible (0.03%), compared to 0.15% in the same period last year (excluding Leumi Card).
     
  • Dividends and buybacks -  The Bank’s Board of Directors approved a dividend distribution policy of 40% of the net income in the first quarter of 2019, totaling NIS 437 million ($120 million). Furthermore, the Bank’s Board of Directors approved an additional share buyback plan of NIS 700 million ($193 million).
     
  • Net interest income in the first quarter of 2019, excluding Leumi Card, was up by NIS 183 million ($50.4 million) compared with the same period last year, a 9.4% increase.
     
  • Total operating and other expenses in the first quarter of 2019, excluding Leumi Card, were up by NIS 141 million ($38.8 million) compared with the same period last year, a 7.8% increase. The increase mainly arose from a bonus granted to employees in respect of the Bank’s strong annual results in 2018.

 


An improvement in balance sheet parameters:

 

  • Shareholders’ equity was NIS 35.9 billion ($9.9 billion) as at March 31, 2019, compared with NIS 33.6 billion ($9.3 billion) as at March 31, 2018.
     
  • Net credit to the public was NIS 277.1 billion ($76.3 billion) as at March 31, 2019, compared with NIS 263.3 billion ($72.5 billion) as at March 31, 2018 (excluding Leumi Card). The increase is mainly due to mortgage, middle-market and corporate loans.
     
  • Deposits from the public reached NIS 363.6 billion ($100.1 billion) as at March 31, 2019, compared with NIS 362.5 billion ($99.8 billion) as at March 31, 2018 (excluding Leumi Card).
     
  • Leverage ratio as at March 31, 2019 was 7.32%, compared to the 6% minimum required by the Bank of Israel.
     
  • Liquidity coverage ratio as at March 31, 2019 was 129%, compared to the 100% minimum required by the Bank of Israel.

For the full report >>