Bank Leumi explained that the main reason for the fall in profit was the need to set aside money for credit losses due to the coronavirus crisis.
Bank Leumi (TASE: LUMI) reported NIS 694 million profit in the second quarter of 2020, down 25% from the corresponding quarter of 2019. Profit in the first quarter had fallen 77% to NIS 462 million. Profit in the second quarter was high in relation to the sector and included ca substantial growth in income that was not from interest (mainly trading activities, rate differences and capital gains from bond investments). There was also a sharp fall in operational and other expenses (including a sharp fall in salary and related costs).
Bank Leumi explained that the main reason for the fall in profit was the need to set aside money for credit losses due to the coronavirus crisis.
In the second quarter, Leumi's credit portfolio to the public fell 3.4% and the ratio of credit to deposits shrank to 68.2% at the end of the second quarter from 70.3% at the end of the first quarter.
Published by Globes, Israel business news - en.globes.co.il - on August 28, 2020 © Copyright of Globes Publisher Itonut (1983) Ltd. 2020
Bank Leumi Photo: Eyal Izhar