Israel Discount Bank (TASE: DSCT) reported a 31.8% drop in its annual profit this morning. The bank made a profit of NIS 596 million in 2014. For the fourth quarter, in accordance with its profit warning, the bank reported a negligible profit of NIS 5 million, 93% down on the corresponding quarter of 2013.
Discount Bank explains that its financial results were affected by, among other things, the early retirement of 400 employees that took place in the fourth quarter, a loss on the sale of the bank's Uruguayan subsidiary, and a loss on the sale of TruPS (Trust Preferred Securities) at Discount New York.
At the end of 2014, Discount Bank had a capital adequacy ratio of 9.4%, compared with 8.9% at the end of 2013. Return on equity fell from 7.3% in 2013 to 4.7% in 2014.
Chairman Yossi Bachar and CEO Lilach Asher-Topilsky said, "In 2015, the Discount group will continue to work according to its strategic plan. The early retirement program, the sale of the holdings in First International Bank, and the contraction of international activity, which were implemented in 2014, will enable the bank to channel resources, capital, and management attention to growth, and to focus on its goals, while continuing with streamlining processes and instilling an organizational culture that is supportive of change."
Bachar's salary cost was NIS 1.71 million last year, and that of Asher-Toplisky was NIS 4.83 million. Asher-Topilsky forewent a NIS 783,000 bonus to which she was entitled in 2014.
Published by Globes [online], Israel business news - www.globes-online.com - on March 9, 2015
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