Net profit was NIS 174 million in the second quarter of 2020, down 68% from the corresponding quarter of 2019.
In its second quarter results, Israel Discount Bank (TASE: DSCT) has reported that it has set aside NIS 532 million for credit losses due to the Covid-19 crisis. As a result net profit was NIS 174 million in the second quarter of 2020, down 68% from the corresponding quarter of 2019, and return on capital was only 3.7%.
Discount Bank ended the first half of 2020 with net profit of NIS 453 million, down 52% from NIS 950 million in the first half of 2019.
The bank also reported that its board of directors had confirmed an early retirement program, which will see about 300 employees aged 50-66 take early retirement on preferential terms. This increased the bank's financial commitments by NIS 253 million without any tax impact. The overall cost of the retirement program, including compensation as legally required, amounts to NIS 553 million, before tax.
Discount Bank estimates that the early retirement plan will be completed by the end of 2020.
Published by Globes, Israel business news - en.globes.co.il - on August 27, 2020 © Copyright of Globes Publisher Itonut (1983) Ltd. 2020
Israel Discount Bank