The sale of Israel Corporation (TASE: ILCO) shares gave Bank Leumi (TASE: LUMI) a NIS 1.171 billion first quarter profit, compared with a NIS 565 million profit in the first quarter of 2014. Excluding the one-time profit on the sale of the shares, the bank's first quarter profit was NIS 753 million, reflecting an 11.7% annualized return.
Credit for households and small businesses grew 1.1%, compared with the end of 2014, and 8.1%, compared with the corresponding period last year. Credit for the business sector was up 0.4% in comparison with the end of 2014.
The bank's report also shows that its expenses in respect of credit losses totaled NIS 81 million, amounting to 0.13% of total net credit to the public. Its capital adequacy ratio was 13.84%, with a 9.37% ratio for tier-1 capital.
Net revenue from interest dropped 13.7% to NIS 1.516 billion, while non-interest revenue jumped, mainly as a result of the bank's sale of shares in Mobileye(NYSE: MBLY), which garnered NIS 474 million for the bank.
Bank Leumi allowed $5 million more in its reports for the affair concerning its assistance to US customers in tax evasion, as instructed by the Bank of Israel in this matter.
Bank Leumi has already signed an arrangement with the US authorities in this affair (the US Department of Justice and the New York State financial regulator), and has paid a $400 million fine. At the same time, the investigation of the bank by the US Securities and Exchange Commission remains open.
Published by Globes [online], Israel business news - www.globes-online.com - on May 28, 2015
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