Leumi to report NIS 290m profit on Mobileye share sale

Bank Leumi branch picture: Tamar Mitzpi
Bank Leumi branch picture: Tamar Mitzpi

Bank Leumi also sold Mobileye shares in 2014, making profits of NIS 143 million and NIS 16 million.

Bank Leumi (TASE: LUMI) is selling more Mobileye(NYSE: MBLY) shares. Leumi Partners Ltd., a subsidiary of the bank, sold Mobileye shares for a total of NIS 310 million, and Bank Leumi is expected to post a NIS 290 million pre-tax profit for the first quarter of 2015.

Bank Leumi reported a NIS 143 million profit for the third quarter of last year on the sale of Mobileye shares in August 2014, on top of a previous NIS 16 million profit on a sale of shares in the company.

Mobileye held its IPO in August at $25 a share, after which the share skyrocketed to $57.70, then slid downwards its current $43.43 price, reflected a $9.3 billion market cap and a 70% return on the IPO price.

Mobileye's system is based on a mono-camera installed beneath the car's rearview mirror. The system issues a sound warning of potentially dangerous situations, such as moving out of the lane, tailgating, and getting too close to pedestrians and bicycle riders. The product is being sold to equipment manufacturers, who market it to auto manufacturers for integration into the cars they offer to the public at large.

Published by Globes [online], Israel business news - www.globes-online.com - on March 18, 2015

© Copyright of Globes Publisher Itonut (1983) Ltd. 2015

Bank Leumi branch picture: Tamar Mitzpi
Bank Leumi branch picture: Tamar Mitzpi
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