Mizrahi Tefahot Bank (TASE:MZTF) reported record profits of NIS 676 million in the first quarter of 2021, 90% up from NIS 357 million in the first quarter of 2020.
A major part of the rise in profits was due to the reduction in default provisions, which fell from NIS 345 million in the first quarter of 2020, to just NIS 13 million in the first quarter of 2021.
Mizrahi Tefahot Bank CEO Moshe Lari said, "In the first quarter of this year total expenses with respect to credit losses were more moderate, with gradual attribution of the group-based provision to specific areas and borrowers."
Mizrahi's Tier 1 ratio of capital to risk was 10.15% in the first quarter of 2021, up from 9.89% in the corresponding quarter of 2020.
Lari added, "The bank's first quarter figures, which led to return on equity of 14.9% are the result of the ongoing trend of expansion in the scale of activities, the merger of Union Bank into the Group and the gradual exit of the economy from the Covid crisis. In the main balance sheet clauses and the overall balance sheet, credit to the public and deposits fropm the public, the bank continues to grow consistently despite the lockdown that dominated the first quarter."
Published by Globes, Israel business news - en.globes.co.il - on May 19, 2021
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