Discount Bank posts record profit as mortgages grow 26%

Israel Discount Bank Photo: Shutterstock
Israel Discount Bank Photo: Shutterstock

The bank's net profit for 2021 was NIS 2.77 billion, 184% more than in 2020.

Israel Discount Bank (TASE: DSCT) posted a net profit of NIS 2.77 billion for 2021, which compares with NIS 975 million for 2020, representing a rise of 184%. In the fourth quarter of 2021, the bank's profit was NIS 529 million, double the NIS 264 million profit for the fourth quarter of 2020.

The bank benefitted from growth in its credit portfolio, particularly home loans, and in profits of group companies. Mercantile Discount Bank contributed NIS 560 million to the annual profit, credit card company Cal (of which Discount Bank owns 72%) contributed NIS 195 million, Israel Discount Bank New York NIS 300 million ($92 million), and investment arm Discount Capital NIS 212 million.

Discount Bank's total credit portfolio grew 12.9% last year to NIS 213 billion. The home loans portfolio grew 26.5% to 26.5% to NIS 54 billion. The bank said that the figures reflected the focus areas set out in its strategic plan. Loans to medium-size businesses, for example, grew 14.8% in 2021.

Interest income was NIS 1.7 billion in the fourth quarter of 2021, 12% more than in the corresponding quarter of 2020. For 2021 as a whole, , interest income totaled NIS 6.5 billion, up 10.7% in comparison with 2020.

The bank also posted income of NIS 693 million from reversal of credit loss provisions.

Fee income in 2021 totaled NIS 3.1 billion, 10.6% more than in 2020.

The bank's return on equity in 2021 was 13.6%, which compares with 5/1% in 2020. Discount Bank has a policy of distributing 20% of its profits as dividends, so that he dividend on the fourth quarter 2021 profit will be NIS 105 million.

Published by Globes, Israel business news - - on March 9, 2022.

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

Israel Discount Bank Photo: Shutterstock
Israel Discount Bank Photo: Shutterstock
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