The First International Bank made a profit of NIS 81 million in Q2, 108% more than in the corresponding quarter last year. The bank's profit in the first half of 2000 was NIS 147 million, an increase of 65.2%.
In the first half of the year, First International's share in the losses of credit card company Alpha Card amounted to NIS 29 million. Alpha Card's infrastructure was sold to Bank Leumi for NIS 131 million in May, generating a capital gain of NIS 28 for First International. The bank also gave its employees a one-time NIS 14 million bonus for the sale.
Even if the Alpha Card deal is not factored in, the bank's profit was up. Non Alpha Card-related profit in the first half of the year grew 26.8% to NIS 156 million. Q2 profit from pre-allocation financing operations was 30% higher at NIS 301 million.
The major reason for the rise in profit is an increase in financing activity, notably in non-linked shekel-denominated operations.
Return on capital was 11%, up from 7% in the corresponding period last year.
The bank decided to distribute a NIS 38 million interim dividend, and to make a NIS 6 million allocation under its policy of sharing profits with its clients.
Published by Israel's Business Arena on 15 August, 2000