Mizrahi Tefahot Bank (TASE:MZTF) reported a slight rise in profit for the third quarter of 2014. Net profit was NIS 304 million in the third quarter compared with NIS 301 million in the corresponding quarter of 2013.
Financing revenue from current operations in the third quarter was NIS 833 million, up 5.7% from NIS 788 million in the corresponding period last year. Revenue rose to NIS 1.3 billion in the third quarter, up from NIS 1.28 billion in the corresponding quarter. Return on equity in the third quarter was 12% and Ratio of Tier I capital to risk elements (in Basel III terms) was 9.01%.
At the end of the third quarter of 2014, Bank loans to the public amounted to NIS 146.7 billion, up 7.3% from the corresponding period last year. Loan growth was reflected across all operating segments - both retail and business. Retail banking, which typically is highly diversified and bearing relatively low risk, including households, small business and mortgages, posted growth of nearly 9% compared to the corresponding period last year. Loans to businesses also increased by 3.4% compared to September 30, 2013.
Mizrahi Tefahot CEO Eldad Fresher said, "A further improvement in Mizrahi-Tefahot profit, to a new quarterly high of NIS 304 million, along with 12% return on equity and further growth in the capital base and across all bank operating segments - are an impressive achievement, especially given the stricter regulation and margin erosion due to the highly expansive monetary policy."
He added, "Our third quarter results clearly reflect further growth of Bank business; this is primarily reflected by record quarterly revenues amounting to NIS 1.3 billion and significant growth in loans to the public, both retail and business, by 7.3% - with an even greater growth rate in deposits from the public at 10.9%."
Published by Globes [online], Israel business news - www.globes-online.com - on November 18, 2014
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