Leumi concludes Q2 2023 with a NIS 2.4 billion ($649 million) profit - and with a dividend distribution and share buyback of some NIS 1 billion ($270 million)
- None.
- None.
- Net income - NIS 2.4 billion (
)$649 million - Return on Equity -
19.4% - Continued improvement of the efficiency ratio -
29.5% - Leumi to distribute a
NIS 736 million dividend ( ), in addition to$199 million NIS 300 million ( ) in share buyback, bringing the cumulative effective dividend to approx.$81 million 40% of the net income - The share buyback is part of an overall plan of up to
NIS 800 million ( )$216 million
Net income in the second quarter of 2023 amounted to
Return on equity in the second quarter of 2023 was
Efficiency ratio in the second quarter of 2023 was
Dividend and share buyback: The Bank's Board of Directors approved a dividend distribution totaling
Responsible growth in the credit portfolio's strategic segments: The Bank continues to focus its growth on the credit portfolio in the corporate, commercial and mortgage segments. From the beginning 2023, the credit portfolio grew by a total of
High capital adequacy: Common Equity Tier 1 capital ratio as of June 30, 2023 was
Deposits by private customers on June 30, 2023 totaled
Loan loss expenses in the second quarter of 2023 reflect an expense rate of
Valley National Bank: In the second quarter of 2023, the market cap value of Leumi's holdings in US-based Valley National Bank was up and currently amounts to some
Sale of Leumi's HQ buildings: As part of the preparations to complete the transition of the Bank's headquarters to Lod, during April 2022 and March 2023, the Bank entered into an agreement to sell its two headquarters buildings in
Leumi Group - Key Financials
For the three months ended June 30 | Change in NIS million | Change in % | ||
2023 | 2022 | |||
Net Interest income | 4,284 | 3,125 | 1,159 | 37.1 |
Loan loss expenses | 318 | 126 | 192 | + |
Non-interest income | 1,412 | 1,557 | (145) | (9.3) |
Operating and other expenses | 1,683 | 1,641 | 42 | 2.6 |
Profit before tax | 3,695 | 2,915 | 780 | 26.8 |
Provision for tax | 1,364 | 1,007 | 357 | 35.5 |
Profit after tax | 2,331 | 1,908 | 423 | 22.2 |
The Bank's share in the profits of associates | 122 | 84 | 38 | 45.2 |
Net income attributable to non-controlling interests | - | - | - | - |
Net income attributable to the banking corporation's | 2,453 | 1,992 | 461 | 23.1 |
Return on equity (%) | 19.4 | 18.5 | ||
Earnings per share (NIS) | 1.59 | 1.36 |
Profit and profitability (in NIS million)
For the six months ended June 30 | Change in NIS million | Change in % | ||
2023 | 2022 | |||
Net Interest income | 8,212 | 6,024 | 2,188 | 36.3 |
Loan loss expenses | 724 | 86 | 638 | + |
Non-interest income | 2,483 | 2,507 | (24) | (1.0) |
Operating and other expenses | 3,312 | 3,435 | (123) | (3.6) |
Profit before tax | 6,659 | 5,010 | 1,649 | 32.9 |
Provision for tax | 2,253 | 1,490 | 763 | 51.2 |
Profit after tax | 4,406 | 3,520 | 886 | 25.2 |
The Bank's share in the profits (losses) of associates | (972) | 91 | (1,063) | - |
Net income attributable to non-controlling interests | - | (10) | 10 | 100 |
Net income attributable to the banking corporation's shareholders | 3,434 | 3,601 | (167) | (4.6) |
Return on equity (%) | 13.6 | 17.1 | ||
Earnings per share (NIS) | 2.23 | 2.47 |
Development of balance sheet items (in NIS millions)
As at June 30 | December 31, 2022 | ||
2023 | 2022 | ||
Net loans to the public | 409,565 | 364,924 | 384,782 |
Deposits by the public | 533,977 | 532,737 | 557,084 |
Shareholders' equity | 51,771 | 47,060 | 49,438 |
Total assets | 686,857 | 667,680 | 699,166 |
Principal financial ratios (%)
As at June 30 | December 31, 2022 | ||
2023 | 2022 | ||
Net loans to the public to total assets | 59.6 | 54.7 | 55.0 |
Deposits by the public to total assets | 77.7 | 79.8 | 79.7 |
Total equity to risk assets | 14.44 | 14.00 | 14.29 |
Tier 1 capital to risk assets | 11.23 | 11.25 | 11.46 |
Leverage ratio | 6.69 | 6.25 | 6.36 |
Liquidity coverage ratio | 128 | 122 | 131 |
The data in this press release has been converted into US dollars solely for convenience purposes, at the representative exchange rate published by the Bank of
Conference Call Details
A conference call to discuss the results will be held today at 5 PM (
To access the conference call please use one of the numbers below (no passcode required):
Israel 03-918-0610
US & Canada 1-888-407-2553
All other locations +972-3-918-0610
The call will be accompanied by a presentation which will be published on the day of the publication of the Financial Results on the Israeli Securities Authority reporting website (MAGNA). It will also be available on the Leumi website under Investor Relations, in the Financial Statements page, Investor Presentation and Conference Call.
An archived recording will be available on the Leumi website one business day after the call ends.
For more information visit the investor relations page on our website or contact Michael Klahr, VP, Head of Investor Relations, at investorrelations@bankleumi.co.il.
The conference call does not replace the need to review the latest periodic/quarterly reports containing full information, including forward-looking information, as defined in the Israeli Securities Law, and set out in the aforementioned reports.
SOURCE Bank Leumi
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