Mizrahi Tefahot Bank (TASE:MZTF) has reported its financial results for the second quarter 2020 - its last results under outgoing CEO Eldad Fresher. The bank reported net profit of NIS 360 million, down 37.5% from NIS 576 million in the corresponding quarter of 2019. The lower profit was due to the Covid-19 crisis and the need to set aside money for credit losses resulting from the pandemic.
The bank's net profit in the first half of 2020 was NIS 717 million, down 27% from NIS 980 million in the first half of 2019.
Mizrahi Tefahot holds Israel's largest mortgage portfolio and the bank revealed that it has postponed repayment for four months of 100,000 mortgage loans, and there will be an option to further extend repayment according to Bank of Israel instructions. Total mortgages worth NIS 36.7 billion are involved, representing 26.3% of Mizrahi's entire mortgage portfolio.
Financing revenue in the second quarter of 2020 totaled NIS 1.399 billion, down 14.3% from NIS 1.632 billion in the corresponding quarter last year. Financing revenue in the first half of 2020 was NIS 2.810 billion down 3.8% from NIS 2.920 billion in the corresponding period of 2019.
Mizrahi's return on equity in the second quarter and in the first half of 2020 was 9%.
Fresher said, "Despite highly challenging macro-economic conditions, the Bank succeeded in generating 9.0% return on equity and a cost income ratio below 53.0."
Published by Globes, Israel business news - en.globes.co.il - on August 17, 2020 © Copyright of Globes Publisher Itonut (1983) Ltd. 2020</>