D&B Israel’s rating of Israeli banks contained no surprises. Bank Hapoalim (LSE: BKHD; TASE: POLI) maintained its leading position in all parameters, including credit to the public, total assets, shareholders equity, and number of employees. Bank Leumi (TASE: LUMI) remained in second place, and Israel Discount Bank (TASE: DSCT) was third. The list was the same as for 2002.
The Duns 100 rating for 2003 examined the ten active commercial banks in Israel, and the large banks’ five bank subsidiaries. The mergers that took place in 2003, including Bank Hapoalim’s absorption of the Maritime Bank of Israel, were taken into account.
The aggregate assets of Israel’s five largest banks (Bank Hapoalim, Bank Leumi, Discount Bank, United Mizrahi Bank (TASE: MZRH), and First International Bank of Israel (TASE: FTIN1; FTIN5)) totaled $180 billion in 2003, 1.3% more than in 2002. The big five’s credit to the public dropped 1.5% to $130 billion. Total profits of all Israeli banks amounted to $706 million, 458% more than in 2002. The aggregate profits of the five largest banks totaled $722 million, 237% more than in 2002. The number of bank employees in Israel, however, slid 3.5% to 39,804.
The surprise of 2003 was Bank Otzar Hashilton Hamekomi, with growth of 18.3% in assets and 15.3% in credit to the public in 2003. On the other hand, Israel Continental Bank of the Hapoalim Group declined, with 23.6% less asset value and 26.6% less credit to the public.
Although the Industrial Development Bank activity is minimal before it closes down, it is still in the middle of the list of large banks, ahead of active and profitable banks like Bank Otzar Hashilton Hamekomi, Bank Massad, and Bank Poalei Agudat Israel.
Published by Globes [online] - www.globes.co.il - on April 8, 2004