Leumi concludes Q3 2023 with an approximate NIS 1.8 billion ($463 million) profit
- 13.6% return on equity
- Efficiency ratio of 32.3%
- Liquidity coverage ratio of 130%
- CET1 ratio of 11.30%
- NPL ratio of 0.74%
- Decrease in net income compared to the corresponding quarter and period last year
- Decrease in the dividend to 20% of net income due to uncertainty in the markets
- Increased loan loss expenses following the Bank of Israel's letter regarding loan loss expenses on the back of the War and Leumi's extensive relief program
- Total estimated costs of the relief program and donations provided by Leumi following the War is estimated at NIS 560 million ($146 million)
- Return on equity -
13.6% - Best efficiency ratio among Israeli banks -
32.3% - Robust financial indicators - Liquidity coverage ratio of
130% , CET1 ratio of11.30% - NPL ratio, which reflects the quality of the Bank's loan portfolio, continues to be amongst the lowest in the Israeli banking system –
0.74% - Following the Bank of
Israel's letter regarding dividend distribution on the back of the uncertainty in the markets in light of the War, Leumi is decreasing the dividend to20% of its net income -NIS 353 million ( )$92 million - Following the Bank of
Israel's letter regarding loan loss expenses on the back of the War and Leumi's extensive relief program for customers, the Bank increased its loan loss expenses (mainly the collective provision) toNIS 991 million ( )$259 million - Total estimated costs of the relief program and donations provided by Leumi following the War is estimated at
NIS 560 million ( )$146 million
Net income in the third quarter of 2023 amounted to
Return on equity in the third quarter of 2023 was
Efficiency ratio in the third quarter of 2023 was
Dividend: On the back of the uncertainty in the markets in light of the War, and the clarifications published by the Bank of
In addition, thus far the Bank has completed a share buyback of
Responsible growth in the loan portfolio in strategic segments: The Bank continues to focus its growth on the credit portfolio in the corporate, commercial and mortgage segments. From the beginning of 2023, the credit portfolio grew by a total of
High capital adequacy: Common Equity Tier 1 capital ratio as of September 30, 2023 was
Liquidity coverage ratio as of September 30, 2023 was
The NPL ratio, which reflects the quality of the Bank's loan portfolio, continues to be amongst the lowest in the Israeli banking system -
Loan loss expenses in the third quarter of 2023 reflect an expense rate of
The Bank's initiatives due to the War: Leumi significantly expanded the Bank of
In addition, since the outbreak of the War, the Bank made substantial donations to first responder and aid organizations for the benefit of residents of southern
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
Development of balance sheet items:
Shareholders' equity as at September 30, 2023 totaled
Net credit to the public as at September 30, 2023 totaled
Credit to retail customers as at September 30, 2023 totaled
Housing loans as at September 30, 2023 totaled
Credit to small businesses as at September 30, 2023 totaled
Middle-market credit as at September 30, 2023 totaled
Corporate credit as at September 30, 2023 totaled
Deposits by the public as at September 30, 2023 totaled
Deposits by retail customers as at September 30, 2023 totaled
Deposits by small businesses as at September 30, 2023 totaled
CET1 capital ratio as at September 30, 2023 was
Total capital ratio as at September 30, 2023 was
Leumi Group - Key Financials
For the three months | Change in | Change in % | ||
2023 | 2022 | |||
Net Interest income | 3,935 | 3,414 | 521 | 15.3 |
Loan loss expenses | 991 | 99 | 892 | - |
Non-interest income | 1,401 | 855 | 546 | 63.9 |
Operating and other expenses | 1,722 | 1,671 | 51 | 3.1 |
Profit before tax | 2,623 | 2,499 | 124 | 5.0 |
Provision for tax | 866 | 908 | (42) | (4.6) |
Profit after tax | 1,757 | 1,591 | 166 | 10.4 |
The Bank's share in the profits of associates | 10 | 191 | (181) | (94.8) |
Net income attributable to non-controlling | 0 | 0 | 0 | 0 |
Net income attributable to the banking | 1,767 | 1,782 | (15) | (0.8) |
Return on equity (%) | 13.6 | 14.9 | ||
Earnings per share (NIS) | 1.15 | 1.15 |
Profit and profitability (in NIS million)
For the nine months ended | Change in | Change in % | ||
2023 | 2022 | |||
Net Interest income | 12,147 | 9,438 | 2,709 | 28.7 |
Loan loss expenses | 1,715 | 185 | 1,530 | - |
Non-interest income | 3,884 | 3,362 | 522 | 15.5 |
Operating and other expenses | 5,034 | 5,106 | (72) | (1.4) |
Profit before tax | 9,282 | 7,509 | 1,773 | 23.6 |
Provision for tax | 3,119 | 2,398 | 721 | 30.1 |
Profit after tax | 6,163 | 5,111 | 1,052 | 20.6 |
The Bank's share in the profits (losses) of | (962) | 282 | (1,244) | - |
Net income attributable to non-controlling | 0 | 10 | (10) | (100) |
Net income attributable to the banking | 5,201 | 5,383 | (182) | (3.4) |
Return on equity (%) | 13.6 | 16.3 | ||
Earnings per share (NIS) | 3.38 | 3.62 |
Development of balance sheet items (in NIS millions)
As at September 30 | December 31, 2022 | ||
2023 | 2022 | ||
Net loans to the public | 417,261 | 383,023 | 384,782 |
Deposits by the public | 544,519 | 546,706 | 557,084 |
Shareholders' equity | 52,518 | 48,044 | 49,438 |
Total assets | 700,761 | 704,117 | 699,166 |
Principal financial ratios (%)
As at September 30 | December 31, 2022 | ||
2023 | 2022 | ||
Net loans to the public to total assets | 59.5 | 54.4 | 55.0 |
Deposits by the public to total assets | 77.7 | 77.6 | 79.7 |
Total equity to risk assets | 14.42 | 14.28 | 14.29 |
Tier 1 capital to risk assets | 11.30 | 11.41 | 11.46 |
Leverage ratio | 6.73 | 6.34 | 6.36 |
Liquidity coverage ratio | 130 | 127 | 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
Message from the Chairman and CEO
The October 7th terror attack is one of the most devastating experienced by the
As
We developed a business plan adapted to the current needs, with stringent and responsible risk management of capital and liquidity cushions, maintaining business continuity and placing special emphasis on keeping the Bank's branches and call centers fully operational.
At the same time, we published a comprehensive relief program for our customers and a series of important social responsibility initiatives, such as: providing Be'eri with continuous support, from solutions to immediate needs and up to the kibbutz's complete rehabilitation. In addition, we led an initiative in which we pay a full year's tuition to students who volunteer to help farmers harvest their crops.
We understand that financial statements which reflect financial stability and the Bank's robustness - especially during wartime - are highly significant.
Nevertheless, some things are more important. During these hard times for the
We are all one family, one people. Together we shall win.
Shmuel (Muli) Ben Zvi
Leumi Chairman
Hanan Friedman
Leumi CEO
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: 03-9180610
UK: 0-800-917-9141
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.
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SOURCE Bank Leumi
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