Mizrahi Tefahot Bank profits up

Third quarter revenue rose 2% to NIS 260 million despite a decline in financing income to NIS 1.19 billion.

Mizrahi Tefahot Bank (TASE:MZTF) today reported higher net profits on lower revenue for the third quarter of 2012. Net profit rose 2% to NIS 260 million (NIS 1.14 per share) for the third quarter from NIS 255 million for the corresponding quarter of 2011. The return on equity fell to 13% for the third quarter from 14.9% for the corresponding quarter.

Financing income before the provision for credit losses fell to NIS 1.19 billion for the third quarter from NIS 1.21 billion for the corresponding quarter. Net interest income rose to NIS 900 million from NIS 891 million, but commissions and other income fell to NIS 287 million from NIS 321 million. The provision for credit losses fell to NIS 116 million for the third quarter from NIS 142 million for the corresponding quarter.

The tier-1 capital adequacy ratio rose to 8.23% for the third quarter from 7.7% for the corresponding quarter, but the capital adequacy ratio fell 13.11% from 13.55%.

Credit to the public rose 7.6% to NIS 126.6 billion at the end of September, from NIS 117.2 billion a year earlier, and deposits from the public rose to NIS 124.3 billion from NIS 116.5 billion.

Mizrahi Tefahot Bank CEO Eli Yones said, "The bank's financial results show continued expansion of our business activity and our ability to grow and recruit customers at a fast rate, even as we continue to increase profits at a time when the economic situation is deteriorating."

Published by Globes [online], Israel business news - www.globes-online.com - on November 26, 2012

© Copyright of Globes Publisher Itonut (1983) Ltd. 2012

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