Bank Leumi (TASE: LUMI) reported profit of NIS 518 million ($137 million) in the second quarter of 2015, up 126% from NIS 229 million ($61 million) in the corresponding quarter of 2014. The rise stemmed mainly from the bank's need to set aside a major provision last year for its settlement with the US authorities following charges that the bank helped US customers evade taxes.
Net return on equity in the first half of 2015 was 13.1%, and net return on equity in the second quarter was 7.8%, up from 3.6% in the corresponding quarter of 2015.
Other comprehensive income in the second quarter of 2015 amounted to NIS 1,632 million ($433 million), compared with NIS 293 million ($78 million) in the corresponding period last year. The increase results mainly from an increase in net profit and an increase in positive adjustments of liabilities in respect of employee benefits, which were partially offset by a decrease in adjustments in respect of securities available for sale.
Other comprehensive income (after tax effect) in the first half of 2015 amounted to NIS 2,452 million ($651 million), compared with NIS 904 million ($240 million) in the corresponding period last year. Beyond an increase in the net profit, the increase in other comprehensive income results mainly from an increase in positive adjustments of liabilities in respect of employee benefits.
An improvement in the capital adequacy ratio (in Basel lll terms) - the core capital ratio reached 9.52% as of 30.6.15, compared with a ratio of 9.09% as of 31.12.14 and 9.11% in the corresponding period last year. The improvement in the capital adequacy ratio mainly results from the increase in other comprehensive income.
Credit loss expenses in the first half of 2015 were NIS 93 million ($25 million), reflecting 0.07% of the bank's credit portfolio.