Pay pact depresses Mizrahi-Tefahot profit

Mizrahi Tefahot

The bank finished the third quarter with a NIS 261 million net profit.

Mizrahi Tefahot Bank (TASE:MZTF) finished the third quarter of the year with a NIS 261 million net profit, 30% down from the corresponding quarter of 2016, constituting an 8% return on equity. The bank's net profit in the first nine months of 2017 totaled NIS 982 million, down 2% from the corresponding period of 2016, constituting a 10.1% return on capital.

During the third quarter, Mizrahi Tefahot signed a wage agreement with its workers that cost the bank NIS 104 million in profit. The decline in the Consumer Price Index also cost the bank NIS 40 million in profit.

Mizrahi Tefahot's revenue from financing jumped 11% to NIS 1.1 billion in the third quarter, compared with NIS 990 million in the third quarter of 2016. The bank also increased its credit to customers by 6% to NIS 178.6 million, compared with the corresponding quarter last year. The public's deposits at the bank rose 6% to NIS 184.2 million in the third quarter.

The bank's reports show that credit to households totaled NIS 19.4 billion in the third quarter, 6.7% more than in the corresponding quarter last year. Credit to small businesses amounted to NIS 16.1 billion, 9.1% more than in the third quarter of last year, and credit to medium-sized businesses surged 15.4%.

Published by Globes [online], Israel Business News - www.globes-online.com - on November 13, 2017

© Copyright of Globes Publisher Itonut (1983) Ltd. 2017

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