The net profit for the first quarter of 2012 of Israel Discount Bank (TASE: DSCT) subsidiary Israel Discount Bank of New York was halved compared with the corresponding quarter of 2011. Net profit fell to $7.2 million, after the bank redeemed $75 million worth of bonds early, and paid a $7.1 million charge on the redemption.
Financing revenue fell by $6.7 million and operating income fell by $1.7 million. The bank's return on equity fell to 4.2% for the first quarter from 7.7% for the corresponding quarter. The capital adequacy ratio was a high 13.8% at the end of March.
Discount Bank New York's equity rose 1.8% during the first quarter to $691 million at the end of March. The bank distributed a $100 million dividend to its direct parent company Discount Bancorp Inc. last year.
Deposits from the public fell by 4.4% during the first quarter to $6.4 billion at the end of March. Most of the deposits are by Latin American Jews. The balance sheet total was $9.5 billion at the end of March. The credit portfolio fell by 1.3% during the first quarter to $3.7 billion at the end of March.
Discount Bank New York's full-year net profit was $50.1 million in 2011.
Discount Bank's share price fell 1.3% by midday to NIS 4.86, giving a market cap of NIS 5.2 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on May 6, 2012
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