Bank Leumi (TASE: LUMI) subsidiary Leumi Mortgage Bank today published its financial report for the third quarter of 2008. The bank posted a net profit of NIS 47 million (NIS 50 per share), 56.9% less than the NIS 109 million for the corresponding quarter of 2007.
Leumi Mortgage Bank reported income from taxes and a reduced tax expense for the corresponding quarter of 2007: NIS 38 million for closing a tax assessment for 2000-05, and NIS 19 million for an inflation-adjusted tax reduction.
Leumi Mortgage Bank's provision for doubtful debts was NIS 25 million for the third quarter, 31.6% more than the NIS 19 million for the corresponding quarter. The bank's provision for doubtful debts for January-September more than tripled to NIS 94 million from NIS 31 million for the corresponding period, which was a factor in the 45% reduction in net profit to NIS 106 million in January-September from NIS 191 million in the corresponding period. The 5% rise in the Consumer Price Index (CPI) in January-September boosted the provision for doubtful debts on index-linked mortgages by NIS 33 million.
Leumi Mortgage Bank's capital adequacy ratio rose to 9.48% at the end of September, down from 9.96% a year earlier, but still above the Bank of Israel mandate 9% minimum.
Published by Globes [online], Israel business news - www.globes-online.com - on November 11, 2008
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