Israel Discount Bank (TASE: DSCT) today reported strong results for the first quarter of the year. Net profit totaled NIS 242 million, up 84.7%, compared with the corresponding quarter last year.
The jump in net profit resulted from a drop in expenses for credit losses, higher non-interest revenue, a fall in operating expenses, and other causes.
Return on equity was 7.7% in the first quarter, compared with 4.5% in the first quarter of 2014.
Expenses for losses on credit amounted to NIS 32 million, down 57.3%, compared with NIS 75 million in the corresponding quarter last year.
Operating and other expenses fell 2.8% in the first quarter, compared with the first quarter of 2014, principally due to a 7.8% drop in salary and related expenses.
The ratio of total equity to risk elements was 14.3%, and the ratio of tier-1 equity to risk elements was 9.4%.
Discount Bank CEO Lilach Asher-Topilsky said, "The Discount group's results in the first quarter of 2015 reflected progress made in the strategic plan, and indicate accomplishments and growth in the group's core business. The financial reports are the first reflection of the streamlining measures we have been leading in recent months. The focused action taken at the bank and in the group to cut expenses, with an emphasis on salary expenses, should be noted in this context. Among other things, the drop in salary expenses was due to the retirement of hundreds of employees in the voluntary retirement program put into operation at the bank at the end of 2014."
Published by Globes [online], Israel business news - www.globes-online.com - on May 20, 2015
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