Bank Leumi (TASE: LUMI) posted a net profit of NIS 2.8 billion for the first quarter, three times the NIS 981 million profit in the corresponding quarter of 2023, when the bank wrote down the value of its holding in US bank Valley National by NIS 1.1 billion. The bank’s return on equity in the first quarter of this year was 20.2%, which compares with 7.8% in the corresponding quarter. The first quarter profit was boosted by one-time post-tax gain of NIS 632 million from the sale of the Bank Leumi’s head office building in Tel Aviv.
Bank Leumi has declared a dividend of 40% of its first quarter profit - NIS 1.1 billion. NIS 835 billion will be distributed in cash, while the remaining NIS 280 million will be in the form of a buyback of the bank’s shares, out of a total annual buyback program of NIS 1 billion.
The bank’s credit portfolio grew b 2.2% during the first quarter to NIS 428.6 billion, 6.1% more than at the end of the first quarter of 2023.
The provision for credit losses totaled NIS 22 million, which compares with NIS 406 million in the corresponding quarter.
Interest income shrank slightly to NIS 3.77 billion, from NIS 3.93 billion in the corresponding quarter.
Published by Globes, Israel business news - en.globes.co.il - on May 28, 2024.
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