The net profit of First International Bank of Israel (TASE: FIBI) in the last financials presented by its CEO for the past sixteen years, Smadar Barber-Tsadik, totaled NIS 587 million, 71% higher than in the corresponding quarter of 2022. The bank’s return on equity for the quarter was an annualized 21.3%.
For the first half year, the bank posted a net profit of NIS 1.2 billion, 83.4% higher than in the first half of 2022, and an annualized return on equity of 22.6%.
Within the next few weeks, Barber-Tsadik will be replaced by Eli Cohen, whose appointment was announced earlier this week.
In the first half year, First International Bank’s revenue totaled NIS 3.4 billion, 44.4% more than in the first half of 2022. The growth is explained by higher shekel and US dollar interest rates, the rise in the Consumer Price Index, and growth in the bank’s business. Net interest income was NIS 2.6 billion in the first half, 62% more than in the first half of 2022.
Credit to the public grew by 2.5% in comparison with the end of 2022, and totaled NIS 120 billion at the end of the second quarter. Like Israel’s other banks, First International Bank raised its credit loss provision. The credit loss provision expense in the first half of 2023 was NIS 171 million, which compares with NIS 31 million in the corresponding period of 2022.
The bank points out that its non-performing loan ratio (that is the ratio of loans that are not being serviced or that are 90 days or more in arrears to total credit to the public) improved to 0.49% from 0.55% in the corresponding quarter.
First International Bank’s 28% stake in credit card company Cal yielded a contribution of NIS 84 million to its first half profit, which compares with NIS 37 million in the corresponding period of 2022, mainly thanks to a one-time gain from the sale of Cal’s office building.
First International Bank’s dividend policy allows up to 50% of profits to be distributed to shareholders, but in the light of the uncertainties in the local and global markets, the bank’s board decided on a dividend of NIS 200 million, representing 37.5% of the net quarterly profit, and similar to the first quarter dividend.
Published by Globes, Israel business news - en.globes.co.il - on August 15, 2023.
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