Israel Discount Bank's (TASE: DSCT) mortgage business and the sales of two assets in Tel Aviv boosted its first quarter profits. The bank posted a net profit of NIS 983 million for the quarter, which compares with NIS 662 million in the corresponding quarter of 2021, representing a rise of 48.5%. Excluding one-time items, among them the sale of two bank buildings in Herzl Street in Tel Aviv, net profit for the first quarter of 2022 was NIS 668 million.
Besides the asset sales, the source of the increase in profits was, as mentioned, the growth in the bank's credit portfolio, particularly in mortgage lending. Credit to the public (net) totaled NIS 217.8 billion at the end of the first quarter, representing a 2.2% increase over the previous quarter and a 12.7% increase in comparison with the end of the first quarter last year. Credit for housing rose by 5.2% in comparison with the previous quarter and by 28% in comparison with the end of the first quarter last year.
With the recovery of the economy, Discount Bank continued to release provisions accumulated during the Covid-19 pandemic, although at a slower rate. Reversals of credit loss provisions resulted in income on the credit loss item of NIS 60 million in the first quarter of this year, down 59.2% in comparison with NIS 147 million income on this item in the corresponding quarter.
Published by Globes, Israel business news - en.globes.co.il - on May 23, 2022.
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