Bank Leumi (TASE: LUMI) reported higher net profit in the first quarter of 2014 compared with the corresponding quarter of 2013.
The bank's net profit in the first quarter of 2014 was NIS 625 million up 9.6%, from NIS 570 million in the corresponding quarter of 2013. The increase in net profit results mainly from a decrease of NIS 124 million in credit loss expenses (before the effect of tax). First quarter results include a one-time pre-tax profit of NIS 70 million from the sale of Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR) shares, compared with a one-time pre-tax profit of NIS 180 million from the sale of Migdal Insurance and Financial Holdings Ltd. (TASE: MGDL) shares in the corresponding period last year.
Net return on equity in the first quarter of 2014 reached 9.7% (on an annual basis), compared with 9.4% in the first quarter of 2013.
Income in respect of credit losses amounted to NIS 51 million ($15 million), representing 0.08% of the Bank's net credit portfolio.
Bank Leumi's capital adequacy ratio (in Basel lll terms) reached 14.39% at the end of the first quarter of 2014, of which the core capital ratio was 9.41%.
Published by Globes [online], Israel business news - www.globes-online.com - on May 22, 2014
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