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Press Releases

Leumi Reports Net Income of NIS 2,015 Million ($565 Million) and 11.4% ROE in the First Half of 2019

The Bank will distribute a dividend of 40% of its net income in the second quarter of 2019, totaling NIS 369 million ($103 million);
The accumulated dividend for the first half of 2019, including the share buyback, totaled NIS 950 million ($266 million);
The Bank launched an additional voluntary retirement plan

14.08.2019

 

  • Net income in the first half of 2019 reached NIS 2,015 million ($565 million), compared with NIS 1,633 million ($458 million) in the same period last year - a 23.4% year-over-year increase.

 

  • Return on equity in the first half of 2019 was 11.4%, compared with 9.9% in the same period last year. Excluding the effect of the sale of Leumi Card, the return on equity in the first half of 2019 was 10.2%, compared with 9.4% in the same period last year.

 

  • Net income in the second quarter of 2019 totaled NIS 923 million ($259 million), compared with NIS 903 million ($253 million) in the same period last year, and compared with NIS 843 million ($236 million) in the same period last year when excluding the effect of Leumi Card.

 

  • Return on equity in the second quarter of 2019 was 10.6%, compared with 10.4% in the same period last year, excluding the effect of Leumi Card.

 

  • Efficiency ratio continues to improve – A 53.1% ratio in the first half of 2019, compared with 61.7% in the same period last year. Excluding the effect of Leumi Card, the efficiency ratio in the first half of 2019 was 55.5%, compared with 62.0% in the same period last year. Within this framework, the Bank recently launched a new voluntary retirement plan for 250 employees by the end of 2019.

 

  • Credit loss expenses in the first half of 2019 reached 0.19% of the credit portfolio, compared with 0.05% in the same period last year (excluding Leumi Card). The increase stems from credit growth, a decrease in collections and reclassifications.

 

  • Common Equity Tier 1 capital ratio in the first half of 2019 was 11.65%, and the total capital ratio reached 15.08%.

 

  • The Bank will distribute a dividend of 40% of its net income in the second quarter of 2019, totaling NIS 369 million ($103 million). The accumulated dividend for the first half of 2019 totaled NIS 806 million ($226 million).

 

  • Share buyback - At the end of May 2019, the Bank began to implement a share buyback plan in the amount of up to NIS 700 million ($196 million). As of the date of the financial statements’ approval, the Bank purchased shares totaling NIS 301 million ($84 million).

 

  • Net interest income in the first half of 2019, excluding the effect of Leumi Card, was up by NIS 310 million ($87 million) compared with the same period last year, a 7.2% increase.

 

  • Total operating and other expenses in the first half of 2019, excluding Leumi Card, were up by NIS 101 million ($28 million) compared with the same period last year, a 2.7% increase. The increase mainly arose from a provision for the bonus granted to employees based on high returns and the collective salary agreement.

 

An Improvement in Balance Sheet Parameters:

 

  • Shareholders’ equity totaled NIS 35.8 billion ($10.0 billion) as at June 30, 2019, compared with NIS 34.7 billion ($9.7 billion) as at June 30, 2018.

 

  • Net credit to the public totaled NIS 277.1 billion ($77.7 billion) as at June 30, 2019, compared with NIS 264.2 billion ($74.1 billion) as at June 30, 2018 (excluding Leumi Card). The increase is mainly attributed to mortgage, middle-market and corporate loans.

 

  • Deposits by the public totaled NIS 373.2 billion ($104.6 billion) as at June 30, 2019, compared with NIS 361.2 billion ($101.3 billion) as at June 30, 2018 (excluding Leumi Card).

 

  • Leverage ratio as at June 30, 2019 was 7.14%, compared to the 6% minimum required by the Bank of Israel.

 

  • Liquidity coverage ratio as at June 30, 2019 was 125%, compared to the 100% minimum required by the Bank of Israel.

 

 

For the full report >>