First International Bank of Israel (TASE:FTIN1; FTIN5) has reported its financial results for the third quarter of 2023 as CEO Smadar Barber-Tsadik steps down after 16 years at the helm.
Net profit was NIS 455 million, down 2.6% from NIS 467 million in the corresponding quarter last year and down 22.5% from the second quarter of 2023. Return on Equity amounted to 16%. The main reason for the fall in profit was the large expenditure for credit losses amounting to NIS 165 million, quadruple the NIS 43 million set aside in the corresponding quarter of last year. The large amount set aside for credit losses is due to the war.
Ratio of Tier 1 equity capital to risk components was 10.84%, 1.6% in excess of the required regulatory ratio and the bank has a high liquidity coverage ratio, which increased to 142%. The Bank's non-performing loan (NPL) ratio, which is an indicator of the quality of the credit portfolio, remains at low levels and stands at 0.49%.
Barber-Tsadik said, "The First International Bank enters a period of uncertainty created in the wake of the war, as a solid, strong and stable bank with high financial resilience (in both liquidity and capital), with a high-quality and diverse credit portfolio.
She added, "Over the long-term, the Bank continues to present high profitability, responsible growth across broad operations, while maintaining its diversity and asset quality. The growth in our revenue allows us to create higher financial buffers at this time, both as buffers against credit losses and capital buffers, mainly against the background of uncertainty in the economy and concerns regarding predicted macro-economic impacts, as well as developments in geo-political conditions."
Published by Globes, Israel business news - en.globes.co.il - on November 29, 2023.
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