Bank Leumi (TASE: LUMI) continues to be the most profitable bank in Israel's banking sector. Leumi reported net profit of NIS 2.38 billion for the full year of 2010, 18.1% higher than the NIS 2.01 billion recorded for the full year of 2009.
The bank's return on equity was 10.3%. Its capital adequacy ratio was 15.1%. Its Tier-1 capital ratio was 8.57%, above its 8-8.5% target.
The bank attributed the rise in profit to continued recovery from the global economic crisis, and rises in the local and foreign stock markets. The recovery from financial crisis was seen clearly in the 62% drop in provision for doubtful debts. The figure at the end of 2010 was NIS 584 million, down from the NIS 1.52 billion at the end of 2009.
The bank reported full year net interest income, before provision for doubtful debts, of NIS 7.43 billion, up 5.8% from the NIS 7.02 billion in 2009. Operating and other income reached NIS 4.1 billion, down 9.9% from the NIS 4.56 billion in 2009.
Credit to the public at the end of 2010 was NIS 224 billion (compared to 204.7 billion at the end of 2009), and deposits from the public were 249.6 billion (down slightly from 250.4 at the end of 2009).
For the fourth quarter of 2010, Bank Leumi reported net profit of NIS 519 million, 4.6% lower than the NIS 544 million recorded in the corresponding quarter of 2009.
Leumi is run by CEO Galia Maor.
Published by Globes [online], Israel business news - www.globes-online.com - on March 30, 2011
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