IDB Holding Corp. Ltd. (TASE:IDBH) and its wholly owned subsidiary IDB Development Corporation Ltd. today published their financial reports for the first quarter of 2010. IDB Development posted a net profit of NIS 1.13 billion for the first quarter, compared with NIS 322 million for the corresponding quarter of 2009. IDB Holding's net profit rose to NIS 1.06 billion from NIS 451 million over the same period.
Subsidiary Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS) contributed a net profit of NIS 95 million for the first quarter, up from NIS 8 million for the corresponding quarter. IDB Holding owns 55% of the company.
IDB Holding's board of directors approved the distribution of a NIS 150 million dividend, which will be paid on June 22.
IDB Holding chairman Nochi Dankner said, "We're monitoring the negative developments in the economy and the instability in European markets, especially in the past few weeks and months. These developments are another stage in the crisis that we've been experiencing since late 2007, which in general is part of the great transfer of global wealth, economic power, and maybe even political and social hegemony from the countries and economies of the West to the emerging economies and markets of the East. The latest economic crisis is a step in this process, which will probably end with a further narrowing of the gap between the economies of the West and the economies of the East.
"However, the power and soundness of the American economy should be noted, where there are strong signs of improvement and recovery. It seems that China and the East, alongside the US, are driving the world toward improvement and overcoming the crisis."
Dankner added, "The Israeli economy is also affected by these processes. On one hand, the crisis in Europe is liable to affect exports, and requires close watching of financial exposure. On the other hand, we should continue to develop and expand our trade relations with Eastern countries and emerging markets. They are the locomotives that will drive global growth in the coming years.
"Israel's accession to the OECD supports the economy. This is a function of responsible and careful economic management in recent years. I believe that the accession will contribute to the soundness of the Israeli economy."
Published by Globes [online], Israel business news - www.globes-online.com - on May 30, 2010
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