First International Bank of Israel (TASE: FTIN) reports a net profit of NIS 134 million for the second quarter of 2016, up 13.6% on the NIS 118 million profit reported for the corresponding quarter of 2015. In the first six months of 2016, the bank's net profit was NIS 281 million, 8% up on the corresponding quarter.
The bank explains that there were several offsetting factors affecting its second quarter profit: a one-time profit on the sale of the bank's right in Visa Europe, offset by credit losses and a provision for its streamlining program.
Credit to the public at the end of the second quarter totaled NIS 76.1 billion, representing growth of 4.9% in the first half of the year, and 7.8% since the end of the second quarter of 2015.
At the end of the second quarter, First International Bank had a tier one capital adequacy ratio of 9.97%. Its capital grew by NIS 266 million, or 3.8%, in the first half of 2016.
Net interest income in the first half year totaled NIS 1.1 billion, 10.8% more than in the corresponding period of 2015. Excluding the provision for the streamlining plan and the effect of implementation of a special collective agreement last year, operating and other expenses fell NIS 65 million, or 4.7%, in the first half of 2016 in comparison with the first half of 2015.
The bank's efficiency ratio improved to 70.1% in the second quarter of 2016.
First International Bank CEO Smadar Barber-Tsadik said, "The results for the first half of 2016 testify to the growth of the First International group, particularly in credit to the public, both to private and business customers, and, as a result, in financing profits. This has been accompanied by maintenance of First International's financial strength, manifest in, among other things, high capital ratios that enable the First International group to continue on its growth path.
"The bank is continuing, and will continue, to implement streamlining measures that are apparent in declines in all expense items and in the improvement in the bank's efficiency ratios."
Published by Globes [online], Israel business news - www.globes-online.com - on August 15, 2016
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