Mizrahi Tefahot Bank (TASE:MZTF) reported record quarterly revenue in its third quarter results released this morning: NIS 1.44 billion, up 11% in comparison with the corresponding quarter of 2014, when revenue totaled NIS 1.3 billion.
The bank posted a net profit of NIS 316 million for the quarter, slightly higher than the NIS 313 million profit posted in the third quarter of 2014.
Shareholders' equity rose 9.6% to NIS 11.6 billion at the end of the third quarter, when the bank had a tier 1 capital adequacy ratio of 9.3%. Return on equity in the third quarter was 11.5%.
Credit to the public rose 7.7% to NIS 158 billion in the third quarter, while deposits from the public rose 5% to NIS 158.1 million.
Mizrahi Tefahot CEO Eldar Fresher said, "A net profit of NIS 316 million and return on equity of 11.5% in the third quarter of 2015, alongside a further increase in the capital base and growth in all the bank's areas of business represent a notable achievement, especially given the challenging regulatory and macro-economic environment in which the Israeli banking system operates.
"Amid continued rising activity in the real estate market in general and the mortgage market in particular, Mizrahi Tefahot has maintained its leading position in the industry, with a market share of 35% in housing loans. This is while strictly adhering to a conservative underwriting policy and maintaining a low financing and repayment ratio, as well as carrying out constant and meticulous examination of the risk component of the portfolio, including the scenario of an interest rate hike by the Bank of Israel and a deterioration of the economic situation."
Published by Globes [online], Israel business news - www.globes-online.com - on November 17, 2015
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