Bank Leumi triples annual profit

Hanan Friedman Photo: Oren Dai
Hanan Friedman Photo: Oren Dai

The profit for 2021 of NIS 6 billion is by some way the largest among Israel's banks. Leumi has declared a NIS 588 million dividend for the fourth quarter.

Bank Leumi (TASE: LUMI), headed by Hanan Friedman, reports a net profit for 2021 of NIS 6 billion, the highest among Israel's banks, and more than NIS 1 billion ahead of the next highest profit, that of Bank Hapoalim, reported yesterday. Bank Leumi's annual profit last year was almost triple the figure for 2020 of NIS 2.1 billion. The bank's net profit in the fourth quarter of 2021 was NIS 1.5 billion, which compares with NIS 900 million in the corresponding quarter of 2020.

The substantial increase in net profit results from a significant rise in income alongside a moderate rise in expenses, and from reversal of credit loss provisions after these were increased considerably in 2020, as at all the banks, when the coronavirus pandemic broke out, in anticipation of borrowers not being able to repay loans. Bank Leumi posted income of NIS 812 million on the credit losses item for 2021.

Unlike at Bank Hapoalim, which decided not to distribute a dividend from its fourth quarter profit but rather to devote the profit to expanding credit, the board of directors of Bank Leumi approved a dividend distribution of NIS 588 million, representing 40% of the net profit for the fourth quarter. This is in addition to dividends totaling NIS 2 billion for the first half year.

Bank Leumi's credit portfolio grew 16.1% last year, to NIS 343 billion. Corporate credit grew 20%, commercial credit grew 15.2%, and the mortgage portfolio grew 14.5% to NIS 103.2 billion. Credit to private customers grew by 10%.

The bank's net credit income totaled NIS 10.3 billion in 2021, 18.6% more than in 2020. Non-interest financing income totaled NIS 1.7 billion in 2021, which compares with NIS 1 billion in 2020. The increase mainly stems from profits on the sale of shares in Fox-Wizel Ltd. (TASE: FOX) unit Retailers and in mobile adtech company ironSource.

Deposits from the public grew 20% last year to NIS 537 billion.

Bank Leumi's share price is up nearly 3% on the Tel Aviv Stock Exchange this morning.

Published by Globes, Israel business news - en.globes.co.il - on March 9, 2022.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2022.

Hanan Friedman Photo: Oren Dai
Hanan Friedman Photo: Oren Dai
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