First Int'l Bank reports lower annual profit

Smadar Barber-Tsadik  photo: Tamar Matzapi
Smadar Barber-Tsadik photo: Tamar Matzapi

The bank earned NIS 446 million in 2015, 2% less than in 2014. CEO Smadar Barber-Tsadik: We will continue streamlining.

First International Bank of Israel (TASE: FTIN) reported its fourth quarter and full year 2015 results this morning. The bank's annual net profit fell 2% to NIS 446 million from NIS 455 million in 2014. In the fourth quarter, its profit rose sharply to NIS 177 million, which compares with NIS 51 million in the corresponding quarter of 2014 and NIS 86 million in the previous quarter.

Revenue totaled NIS 3.494 billion in 2015, 3% less than in 2014. NIS 1.392 billion of the total was fees and other revenue.

The bank's return on equity was 6.5% in 2015, while the figure for the fourth quarter was 6.8%. At the end of 2015, First International's capital adequacy ratio was 13.26%, with the core ratio at 9.81%. Credit to the public rose 5.3% to NIS 72.55 billion, and deposits from the public rose 8.5% to NIS 103.26 billion.

First International CEO Smadar Barber-Tsadik said, "In 2015, the First International group introduced several streamlining and growth-generating measures, chiefly merging two subsidiaries, U-Bank and Bank Pagi, into First International, a merger that took place in the final quarter of the year. The merger, in which the leading brands in each field have been preserved - Pagi in the haredi and religious sector, and U-Bank in private banking - enables us to grow among these target groups thanks to the removal of regulatory limitations that apply to small banks but no longer apply to the business of the group following the merger. The merger also enables us to make savings in office space and manpower. The group will persevere with its streamlining effort with the aim of continuing to reduce expenses and improve efficiency ratios."

Published by Globes [online], Israel business news - www.globes-online.com - on February 28, 2016

© Copyright of Globes Publisher Itonut (1983) Ltd. 2016

Smadar Barber-Tsadik  photo: Tamar Matzapi
Smadar Barber-Tsadik photo: Tamar Matzapi
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