Discount Bank's profit up 40% in Q3

Lilach Asher-Topilsky

The Israeli bank will distribute 10% of its net profit as a dividend.

Israel Discount Bank (TASE: DSCT), which is currently in the process of acquiring Dexia Israel and merging it into Mercantile Discount Bank, today reported continued growth and improvement in activity in its financial results. Discount Bank finished the third quarter of 2018 with a NIS 439 million net profit, 40% more than in the third quarter of 2017. Discount Bank's profit in the first nine months of 2018 was NIS 1.18 billion, 33% more than in the corresponding period last year. The bank announced that it would distribute 10% of its profit, amounting to NIS 44 million, as a dividend for the third quarter.

Discount Bank's return on equity in January-September was 9.9%, still short of 10%, but an improvement on 8.1% in the corresponding period last year. Return on equity in the third quarter was 11.1%, compared with 8.6% in the third quarter last year.

Discount Bank's share price is up 28% this year, pushing its market cap up to NIS 15 billion, while the Tel Aviv Stock Exchange (TASE) index rose 13.2% in the same period. Discount Bank is managed by CEO Lilach Asher-Topilsky.

Discount Bank's ratio of tier-1 shareholder's equity to risk also improved, reaching 10.02%, while growth in it its credit portfolio continued with an 8.3% increase, compared with the corresponding period last year. The public's deposits increased 5.5% since the beginning of the year, reaching almost NIS 185 billion, meaning that the ratio of credit to deposits rose. One reason for the increase in the bank's total credit portfolio was growth in credit to the retail sector, with an emphasis on mortgages, combined with strong growth in business credit for large businesses. Discount Bank's expenses for credit losses fell steeply this year.

Published by Globes, Israel business news - en.globes.co.il - on November 15, 2018

© Copyright of Globes Publisher Itonut (1983) Ltd. 2018

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Lilach Asher-Topilsky
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