Israel Discount Bank (TASE: DSCT) posted an 11.9% rise in net profit in the third quarter to NIS 188 million, compared with NIS 168 million in the third quarter of 2015. In the second quarter this year, the bank posted a profit of NIS 393 million.
The bank's net financing income was NIS 1.87 billion in the third quarter, which compares with NIS 1.067 billion in the corresponding quarter.
Credit to the public stood at NIS 139.31 billion at the end of the third quarter, 12.7% more than at the end of the third quarter of 2015. Deposits from the public rose 7.7% to NIS 164.89 billion. The bank's shareholders' equity rose 6.3% to NIS 14.15 billion.
Discount Bank's tier 1 capital adequacy ratio was 9.8% at the end of the third quarter, which compares with 9.5% at the end of 2015. The overall capital adequacy ratio was 13.9%, lower than the 14.4% at the end of the corresponding quarter and the 14.3% recorded at the end of 2015. Annualized net return on equity in the third quarter was 5.5%. Excluding a provision for CAL-Israel Credit Cards Ltd. return on equity was 6.4%.
Discount Bank CEO Lilach Asher-Topilsky said today, "The third quarter 2016 financials reflect continued growth in the bank's results and consolidation of positive trends in the performance of the Discount group for several successive quarters. The growth trend in the core activity across the group stands out particularly, manifest in 11% growth in interest income in comparison with the corresponding quarter of last year despite the low interest rate environment.
"At the same time we continue with streamlining measures at the bank and its subsidiaries, with the emphasis on cutting costs, careful management of the workforce, and efficiency measures on the real estate side. A few weeks ago we published details of a further stage in the multi-year efficiency plan in which we offered a voluntary retirement program which 250 employees have accepted. Alongside this we are at the height of negotiations with the workers committee on a pay agreement for the coming years and on extending the labor relations rulebook with adjustments to cater for the bank's needs in a changing banking environment."
Published by Globes [online], Israel business news - www.globes-online.com - on November 17, 2016
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