First International Bank of Israel (TASE: FTIN) reported flat profit on lower revenue for 2011. Net profit rose 0.6% to NIS 485 million in 2011 from NIS 480 million in 2010, and the return on equity rose to 8.6% from 8%. The core capital adequacy ratio rose to 8.48% in 2011 from 8.04% in 2010.
Income from financing operations before the provision for credit losses fell 1.1% NIS 2.18 billion in 2011 from NIS 2.21 billion in 2010. The provision for credit losses fell 19% to NIS 93 million (0.14% of total credit) in 2011 from NIS 115 million (0.18% of total credit) in 2010.
Fourth quarter net profit rose 28.1% to NIS 178 million from NIS 140 million for the corresponding quarter of 2010, and the return on equity rose to 12.6% from 9.7%.
Fourth quarter earnings from financing operations was NIS 598 million, and the provision for credit losses totaled NIS 34 million (0.21% of credit).
Deposits from the public rose 1.5% to NIS 65 billion at the end of 2011 from NIS 63.4 billion a year earlier, and credit to the public rose 2.4% to NIS 65 billion from NIS 63.4 billion.
First International Bank CEO Smadar Barber-Tsadik said, "Apparent in 2011 results, however, are effects of the serious crisis in world capital markets, which were reflected in the bank's results mainly in the third quarter. The quality capital base and high core capital will enable the group to continue applying a growth strategy concurrent with a continued increase in efficiency."
First International Bank's share price fell 1.2% by midday to NIS 41.70, giving a market cap of NIS 4.2 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on March 28, 2012
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