Mizrahi Tefahot posts record profit

Eldad Fresher Photo: Tamar Matsafi
Eldad Fresher Photo: Tamar Matsafi

Third quarter profit was NIS 373 million, and the bank reached its capital adequacy target early.

Mizrahi Tefahot Bank (TASE:MZTF) is the first of Israel's banks to report its first quarter results. The bank reported today that its net profit rose to NIS 373 million in the last quarter, the highest quarterly profit in its history. It compares with NIS 340 million in the second quarter and NIS 316 in the third quarter of 2015.

Quarterly revenue rose to NIS 1.476 billion, compared with NIS 1.42 billion in the corresponding quarter of 2015. NIS 1.056 billion was financing income, NIS 40 million was non-interest financing income, and NIS 380 million was fees and other income.

The third quarter return on equity was 12.4%, on an annualized basis, while the bank continued to expand its capital base. Since the end of the third quarter last year, the bank's shareholders' equity has grown by NIS 1.1 billion, and it totaled NIS 12.7 billion at the end of the third quarter of this year.

The bank continued to improve its capital adequacy ratio, and in fact by the end of the third quarter this year it reached the minimum capital adequacy target set for it by the Bank of Israel for January 1, 2017.

The tier 1 capital adequacy ratio was 9.85% at the end of the quarter, while total capital adequacy ratio was 13.52%, which compares with a 13.35% target for the beginning of next year.

Mizrahi Tefahot's board has approved a dividend of NIS 56 million on the third quarter's profits.

Mizrahi Tefahot CEO Eldad Fresher said, "The third quarter 2016 results represents a quantum leap and indicate the bank's robustness and strength. The good efficiency ratio and the early achievement of the minimum regulatory targets for capital, leverage and liquidity, alongside the opening of more new branches, recruitment of customers and consistent growth in business activity, have enabled the bank to implement its dividend policy this quarter as well, and to share its profits with its shareholders.

Published by Globes [online], Israel business news - www.globes-online.com - on November 14, 2016

© Copyright of Globes Publisher Itonut (1983) Ltd. 2016

Eldad Fresher Photo: Tamar Matsafi
Eldad Fresher Photo: Tamar Matsafi
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