Mizrahi Tefahot Bank (TASE:MZTF), Israel's fourth largest bank, posted 26% net profit growth to NIS 252 million for the second quarter of 2011 from NIS 200 million for the corresponding quarter of 2010.
Mizrahi Tefahot Bank is Israel's largest mortgage bank, with a 34% market share. Total mortgages rose 19% to NIS 63.5 billion at the end of June from NIS 53.2 billion a year earlier. New mortgages rose 16% to NIS 9.14 billion in the first half from NIS 7.9 billion in the first half of 2010, and the average mortgage rose 15% to NIS 390,000 from NIS 340,000. Profit from mortgages totaled NIS 168 million in the first half, a third of the bank's total net profit of NIS 490 million.
Revenue from financing operations before the provision for credit loss rose to NIS 795 million for the second quarter from NIS 714 million for the corresponding quarter. Provision for credit loss fell to NIS 80 million for the second quarter from NIS 122 million for the corresponding quarter. Total revenue rose to NIS 1.14 billion for the second quarter from NIS 1.06 billion for the corresponding quarter.
The return on equity in the second quarter rose to 15.2% for the second quarter from 11.5% for the corresponding quarter. The bank's capital adequacy ratio was 13.6% and its Tier-1 capital adequacy ratio was 7.7%.
Credit to the public rose to NIS 139.2 billion at the end of June from NIS 125.4 billion a year earlier, while deposits from the public rose 10% to NIS 111.5 billion from NIS 101.6 billion.
Mizrahi Tefahot Bank's share price rose 0.2% by mid-afternoon to NIS 33.36, giving a market cap of NIS 7.48 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on August 30, 2011
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