Mizrahi Tefahot Bank (TASE:MZTF) posted its highest ever net profit in the second quarter. The bank's financials released today show a net profit of NIS 988 million in the quarter, compared with NIS 360 million in the second quarter of 2020, a jump of 174%. The bank's net profit for the first half year was NIS 1.664 billion, which compares with NIS 717 million in the first half of 2020.
Mizrahi Tefahot Bank posted the highest return on equity reported in the banking sector so far, at an annualized 21.3%. Annualized return on equity in the first half year was 17.7%. The bank has declared a dividend of NIS 483 million - 30% of its profit for 2020.
The return of the Israeli economy to regular activity in the first few months of this year helped most borrowers who had deferred loan repayments to start paying again. As a result, like the other banks, Mizrahi Tefahot reduced its credit loss provision, posting income on this item of NIS 240 million in the second quarter of this year, which compares with an expense of NIS 270 million in the corresponding quarter.
Credit to the public at the end of the second quarter totaled NIS 254 billion, up NIS 8.7 billion in comparison with the end of 2020. The bank extended new housing and all-purpose loans amounting to NIS 17.9 billion in the second quarter, which compares with NIS 13 billion in the corresponding quarter, representing growth of 37.5%.
Deposits from the public rose by NIS 10.2 billion at the end of 2020 to NIS 294.4 billion at the end of the second quarter of 2021.
Mizrahi Tefahot's financing income, without the newly merged Union Bank of Israel, grew by 9.2% in the second quarter and by 5.4% in the first half year, in comparison with the corresponding periods of 2020. The bank says that the acquisition of Union Bank continues to make a positive contribution both to expansion of business activity and to its financial results.
In the light of its exceptional results, Mizrahi Tefahot employees will receive a special bonus of between NIS 5,000 and NIS 10,000 each.
Published by Globes, Israel business news - en.globes.co.il - on August 16, 2021
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