Bank Leumi (TASE: LUMI), managed by president and CEO Rakefet Russak-Aminoach, today published its results for the first quarter of 2017. Net profit jumped 35% from NIS 459 million in the first quarter of 2016 to NIS 622 million in the first quarter of this year. On the date on which the reports were approved, the bank's board of directors decided to distribute a NIS 124 million dividend - the bank's first dividend in six years.
Revenue from interest rose from NIS 1.655 billion in the first quarter of last year to NIS 1.873 billion in the first quarter this year. The bank's capital adequacy ratio in the first quarter was 14.82%, compared with 14.28% in the corresponding quarter last year and 15.21% for 2016 as a whole, while its core capital adequacy ratio was 11.02%, compared with 9.96% in the corresponding quarter last year.
Return on equity rose from 6.6% in the first quarter of 2016 to 8.1% in the first quarter of this year. Bank Leumi explained that the source of the improvement in return on capital was the increase in revenue from interest, revenue from non-interest business and charges, and exceptionally high expenses in the corresponding quarter last year resulting from the change in the corporate tax rate. On the other hand, expenses for credit losses rose.
Published by Globes [online], Israel Business News - www.globes-online.com - on May 25, 2017
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