In line with the big two banks, Mizrahi Tefahot Bank is raising its dividend rate to 40% of profits from this year.
Mizrahi Tefahot Bank (TASE:MZTF) is raising its dividend rate. The bank released its latest quarterly (and full year) financials today, and announced that from this year it will raise its dividend rate from 30% of profits to 40%. This is similar to the dividend rates at Bank Leumi (TASE: LUMI) and Bank Hapoalim (TASE: POLI). All the banks have raised their dividend rates in recent years after reaching the capital adequacy ratios set by the Bank of Israel.
Mizrahi Tefahot Bank reported a net profit of NIS 1.35 billion for 2017, 6% more than in 2016. The profit growth was thanks to growth of 15% in net financing income, stemming from growth in the bank's credit portfolio and wider spreads in its mortgage business, which is Mizrahi Tefahot's main activity.
Profit grew despite a 12% rise in salary costs because of a one-time provision in the third quarter on account of the new salary agreement at the bank. The salary cost of president and CEO Eldad Fresher was NIS 3.3 million last year, and that of chairman Moshe Vidman was similar.
Published by Globes [online], Israel business news - www.globes-online.com - on February 27, 2018
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