First Int'l Bank profit jumps 16-fold

The bank's net profit rose to NIS 164 million for the third quarter of 2012 from NIS 10 million for the corresponding quarter of 2012.

First International Bank of Israel (TASE: FTIN) today reported a 16-fold jump in its net profit to NIS 164 million for the third quarter of 2012 from NIS 10 million for the corresponding quarter of 2012. The return on equity rose to an annualized 11% for the third quarter from 0.7% for the corresponding quarter.

Net interest income and non-financing interest income rose 77.6% to NIS 634 million for the third quarter from NIS 357 million for the corresponding quarter. Net financing income rose to NIS 570 million from NIS 522 million, and net non-financing interest income was NIS 64 million for the third quarter, compared with a loss of NIS 165 million for the corresponding quarter.

The expense for credit losses, compiled on a conservative basis fell to NIS 33 million for the third quarter from NIS 59 million for the corresponding quarter.

The increase in net financing income was due to higher activity and a lower provision for reduction in the value of securities to NIS 1 million for the third quarter from NIS 96 million for the corresponding quarter. Income from commissions totaled NIS 335 million for the third quarter, 6.4% less than for the corresponding quarter.

The capital adequacy ratio rose to 14.19% at the end of September from 12.69% a year earlier, and the tier-1 capital adequacy ratio rose to 9.33% from 8.18%.

Credit to the public rose 3.3% to NIS 66.2 billion at the end of September from NIS 65 billion a year earlier, and deposits from the public rose 6.2% to NIS 83.8 billion from NIS 81.4 billion.

First International Bank CEO Smadar Barber-Tsadik said, "The First International Bank Group is continuing to display considerable financial resilience as apparent from its highest core capital ratio among the largest banks, its high liquidity ratios and a consistently low level of allowance for credit losses over time, which is indicative of the quality of the bank's credit portfolio. In addition, the group is presenting a substantial growth in activity, which is notable from the expansion of the credit portfolio, the rise in financing earnings and from the increased volume of deposits from the public. Together with the firm hold on expenses, all these are leading to an improvement in the group's profitability".

Published by Globes [online], Israel business news - www.globes-online.com - on November 28, 2012

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

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