Israel Discount Bank (TASE: DSCT)) reported consolidated net profit for the full year of 2009 nearly quadrupled the level of 2008, rising to NIS 923 million from NIS 245 million in 2008.
Fourth quarter net profit was NIS 154 million, compared to a loss of NIS 121 million for the corresponding quarter.
While the bank's provisions for doubtful debts rose 28% from a year ago level to NIS 998 million, higher financing income (before provision for doubtful debt) rose to NIS 4.76 billion, and operating income rose to NIS 3.09 billion from NIS 2.57 billion in 2008, resulting in higher net profit figures.
The bank earned a net NIS 197 million from investment in shares, mainly from sales of shares in Bezeq The Israeli Telecommunication Co. Ltd. (TASE: BEZQ) and Hot Cable Systems Media Ltd. (TASE: HOT), compared with NIS 51 million gained in 2008.
Return on equity in 2009 was 9.8%, and for the fourth quarter was 6.3%, up from 2.7% in 2008 and a negative return of 5.5% in the fourth quarter of 2008.
The bank's capital adequacy ratio was 13.1%, and its Tier 1 capital ratio was 8.8%. Based on new Basel II regulations, the bank's capital adequacy ratio was 12.06%.
Published by Globes [online], Israel business news - www.globes-online.com - on March 25, 2010
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