Israel Discount Bank posted a 40% rise in third quarter profit to NIS 1.2 billion. The bank’s annualized return on equity in the quarter was 14.9%, representing an improvement on the 12% return on equity in the corresponding quarter of 2023. For the first nine months of 2024, however, Discount Bank’s net profit was NIS 3.23 billion, 1.3% lower than in the corresponding period last year.
The bank’s net interest income was NIS 2.86 billion in the third quarter, 5.8% more than in the corresponding quarter. The main contributor to the bank’s bottom line was a sharp reduction in the credit loss expense, which was 54% lower than in the corresponding quarter. The change was due to the fact that in the corresponding quarter Discount Bank made a general provision of 0.4% of its portfolio, in accordance with a directive from the Bank of Israel to all the banks.
Discount Bank’s credit portfolio continues to grow. Net credit to the public grew by 3.2% in the third quarter to NIS 277 billion, which is 7.1% more than at the end of 2023.
The bank’s board of directors has declared a dividend of 30% of the third quarter profit, amounting to NIS 341 million. In addition, the bank decided for the first time on a share buyback program, of up to NIS 500 million. The bank will initially buy back shares for NIS 144 million. Together with the cash dividend, this represents 40% of the third quarter profit.
Published by Globes, Israel business news - en.globes.co.il - on November 18, 2024.
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