The financial reports for 2008 published by Israel's small banks indicate that their workforces expanded last year, while reduced bonuses lowered salaries at nearly all the banks, with the exception of Union Bank of Israel (TASE: UNON), and Ubank Ltd.
Seven small banks have already published their financial reports for 2008: two independent banks Union Bank and Bank of Jerusalem (TASE: JBNK); as well as five subsidiaries of larger banks, Israel Discount Bank (TASE: DSCT) subsidiary Mercantile Discount Bank; First International Bank of Israel (TASE: FTIN1;FTIN5) subsidiaries Ubank and Bank Otsar Hahayal; Mizrahi Tefahot Bank (TASE:MZTF) subsidiary Bank Yahav for Government Employees Ltd.; and Bank Leumi (TASE: LUMI) subsidiary Leumi Mortgage Bank.
In 2008 as in 2007, Union Bank had the highest average salary cost among the small banks, at NIS 312,700, or NIS 26,000 per month. The salary cost was 1.8% higher in 2008 than in 2007. The bank had 1,161 employees at the end of 2008, up from 1,120 employees a year earlier.
Bank of Jerusalem had the second highest average salary cost among the small banks, at NIS 291,500 in 2008, 0.5% less than in 2007. The bank's workforce rose by 7.3% to 367 employees at the end of 2008. This was the third consecutive year that the bank was able to lower the average salary cost, even as it expanded its workforce.
The bank has the highest proportion of employees with higher degrees among the banks: 70% of employees have university degrees, of whom 18% have graduate-level degrees. The bank also stands out for the large proportion of employees hired through personal contracts: 43% of the total workforce.
Ubank has the third highest average salary cost, at NIS 286,000 in 2008, 0.8% higher than in 2007. The average employee bonus was halved to 1.4 salaries in 2008 from 2.8 salaries the year before. The bank's workforce rose by 7.3% to 367 employees in 2008.
The average salary cost at Mercantile Discount Bank was NIS 270,000 in 2008, 1.4% less than in 2007. The bank's workforce rose by 7.1% to 1,459 at the end of 2008 from 1,340 a year earlier.
The average salary cost at Bank Otsar Hahayal was also NIS 270,000 in 2008, down from NIS 281,000 in 2007. The bank's workforce rose by 3% to 914 at the end of 2008. The average salary cost at Bank Yahav was NIS 242,000 in 2008, 13.9% less than in 2007. Part of the drop was due to the acquisition bonus of three monthly salaries paid to employees in 2007.
The average salary cost at Leumi Mortgage Bank was NIS 236,000 in 2008, down from NIS 256,000 in 2007. Part of the decline was due to lower bonuses because of bank's results. The bank's workforce rose by 4.6% to 495 at the end of 2008.
Published by Globes [online], Israel business news - www.globes-online.com - on March 15, 2009
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