Mizrahi Tefahot Bank (TASE:MZTF) reported its second quarter results this morning. Release of the bank's financials was delayed by a two-week strike by its employees over merger talks with Union Bank of Israel (TASE: UNON). Mizrahi Tefahot's CEO is Eldad Fresher.
Mizrahi Tefahot's net profit for the second quarter rose 17.6% to NIS 400 million, in comparison with the NIS 340 million net profit posted in the corresponding quarter of 2016. The bank's return on equity in the second quarter of 2017 was 12.7%.
The bank will distribute a dividend of NIS 120 million on the second quarter profit.
Financing income from regular activity rose 13% in the second quarter to NIS 1.071 billion compared with NIS 946 million in the corresponding quarter. The bank's total quarterly revenue rose 7.8% to NIS 1.56 billion.
Mizrahi Tefahot reports a 7% rise in credit to the public to NIS 177.1 billion. Deposits from the public rose 6.5% to NIS 180.7 billion.
Non-housing retail credit rose 13% to NIS 19.8 billion. Housing credit totaled 117.6 billion at the end of the second quarter, 6.9% more than at the end of the second quarter of 2016. Credit to small and medium-size businesses rose 11% to NIS 21.8 billion.
Mizrahi Tefahot reports that it will make a provision of NIS 160 million in its third quarter financials for the new collective agreement with its employees. Ten days ago, the employees and management signed a memorandum of understanding towards a new agreement.
"Mizrahi Tefahot continues to show growth over the range of its areas of activity, in credit and income, accompanied by consistent growth in its customer base and deepening penetration of new sections of the population," Fresher said, adding, "At the same time, the bank continues to become more efficient through restructuring of the assets that serve its branches and head office units."
Fresher also commented on the memorandum of understanding signed with the employees' representatives after the two-week strike. "For the first time, the agreement turns all employees and managers into equal partners in success and ensures their continued willing commitment to the challenges we face and to the fulfilment of the multi-year plan, on the basis of our human and market strategy," he said.
Published by Globes [online], Israel business news - www.globes-online.com - on August 29, 2017
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