Bank Leumi (TASE: LUMI) reported a 10.7% increase in net profit for the third quarter of 2015. Net profit in the third quarter was NIS 704 million, up from NIS 636 million in the corresponding quarter of 2014. Net profit reflects a return on capital of 10.4%.
Bank Leumi also reported NIS 1.899 billion revenue from interest in the third quarter, down slightly from NIS 1.875 billion in the corresponding quarter of 2014. However, other revenue was NIS 1.344 billion, up 32.5% from NIS 1.013 billion revenue in the corresponding quarter of 2014.
Credit to the public in the third quarter were NIS 260 million, up 4.2% from the corresponding quarter, while deposits from the public were NIS 318 million, up 4.8% from the corresponding quarter.
Capital adequacy ratio (tier 1) was 9.3% at the end of the quarter, up from 9.09% at the end of 2014. Expenses from credit losses for the first nine months of the year totaled NIS 166 million, reflecting 0.09% of the bank's credit portfolio on an annualized basis, while in the third quarter expenses from credit losses totaled NIS 73 million.
Decline in First International Bank's profits
First International Bank of Israel (TASE: FTIN) also reported its third quarter financial results today. Net profit fell 36% to NIS 86 million. The bank explained this decline as being due to two factors both one-time occurrences: an expense of NIS 37 million due to the suit by Zeevi Communications; and expenses due to early retirement of employees and other expenses totaling NIS 15 million related to the merger with UBank.
Net revenue was NIS 497 million, down from NIS 519 million in the corresponding quarter of 2014, while fee collection remained stable at NIS 340 million.
Published by Globes [online], Israel business news - www.globes-online.com - on November 19, 2015
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