Bank Leumi (TASE: LUMI) reported strong fourth quarter results today, and said its net profit for the full year of 2009 jumped to NIS 2.01 billion, the biggest profit among Israeli banks. Net profit in 2008 was 92 million.
Net interest income (before provision for doubtful debts) rose 85.7% to NIS 1.81 billion in the fourth quarter, from NIS 976 million in the corresponding quarter of 2008. The bank's provision for doubtful debts was 65% less at the end of 2009, at 381 million, down from NIS 1.09 billion at the end of 2008.
Net profit for the quarter was NIS 544 million, in contrast to a loss of 1.18 billion in the fourth quarter of 2008.
Credit to the public was less than the level of the end of 2008. As of December 31st, credit extended to the public was NIS 204.7 billion, down 4% from NIS 213.2 billion at the end of 2008. Deposits from the public rose 2.3% to NIS 250.4 billion, from NIS 244.8 billion at the end of 2008.
Leumi's capital adequacy ratio was 14.31%, up from 11.58% at the end of 2008. Its Tier 1 capital ratio was 8.52%. Under Basel II regulations, the bank's capital adequacy ratio is 14.09%, and Tier 1 capital ratio is 8.33%.
Published by Globes [online], Israel business news - www.globes-online.com - on March 25, 2010
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