Bank Leumi (TASE: LUMI), led by CEO Rakefet Russak-Aminoach, reached an initial capital adequacy ratio of 10.1% as directed by the Bank of Israel, after converting liabilities to employees to shares and purchasing insurance for its guarantees, as it announced in recent week.
“Following the conversion of our commitments to bank shares and other steps taken by management recently in order to meet the capital adequacy target set as part of the implementation of Basel III and accounting standards for commitments to employees, the bank reached a capital adequacy ratio of 10.1%,” said the bank.
“The board of the bank is expected to approve on March 20 the offering of shares to employees; the shares will be held by a trustee, in accordance with section 102 of the income tax ordinance, and will be on hold for two years.”
In the past year, Leumi took several measures to improve its capital adequacy, including the sale of its investments in companies like Highway 6 and Israel Corporation. The conversion of future employee benefits added NIS 780 million to Leumi’s capital. The share price set for the process was NIS 13 - a bit under the market price. Leumi allocated 3.24% of its shares for the move.
Published by Globes [online], Israel business news - www.globes-online.com - on March 17, 2016
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