Israel Discount Bank (TASE: DSCT) subsidiary Israel Discount Bank of New York yesterday reported its financial results for the third quarter of 2008. Despite the financial crisis in the US, the bank posted a profit of $2.3 million, 82% less than for the corresponding quarter of 2007, due to the bank's exposure to Lehman Brothers. The return on equity was 7.2%.
Discount New York posted a profit of $32.5 million in January-September, 23% more than the $26.4 million for the corresponding period last year. The bank has a capital adequacy ratio of 10.5%.
The bank's corporate bond portfolio totaled $518 million at the end of September. The bank made a $24 million write-off in its profit and loss statement on the exposure to Lehman Brothers. The bank also increased its write-down on its capital reserve from $80 million at the end of June to $85 million at the end of September.
Clal Finance Batucha analyst Yuval Ben-Zeev said, "Discount New York is growing nicely. Were it not for the exposure to Lehman Brothers, the bank would have reported strong profit growth."
Published by Globes [online], Israel business news - www.globes-online.com - on November 6, 2008
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