Bank Leumi (TASE: LUMI) reported a positive trend in its third quarter results released today, with 14% growth in net profit, to NIS 936 million, giving the bank an annualized return on equity of 11.2%, which compares with 10.3% in the corresponding quarter of 2017.
In the first nine months of 2018, Leumi's profit grew 10% in comparison with the corresponding period of 2017, to NIS 2.57 million, giving a return on equity of 10.2% compared with 9.7% in the corresponding period.
Bank Leumi's board declared a dividend of 40% of profits, or NIS 375 million, bringing the bank's total dividend distribution so far this year to NIS 1 billion.
In the third quarter, the bank's net interest income was NIS 2.2 billion, 14% more than in the corresponding quarter. Net interest income for the first nine months was NIS 6.6 billion, up 11% in comparison with the corresponding period of 2017.
At the end of the third quarter, credit to the public totaled NIS 276 billion, 4% more than at the end of the third quarter of 2017.
Credit losses in the third quarter were NIS 200 million, up from just NIS 3 million in the corresponding quarter. In the first nine months, credit losses totaled NIS 314 million, up 115% in comparison with the corresponding period of 2017.
Bank Leumi, headed by CEO Rakefet Russak-Aminoach, attributes the credit losses to lower collection from lenders in the commercial and real estate sectors.
Published by Globes, Israel business news - en.globes.co.il - on November 13, 2018
© Copyright of Globes Publisher Itonut (1983) Ltd. 2018