Bank Leumi (TASE: LUMI) today reported a net profit of NIS 1.94 billion for 2013, compared with NIS 931 million in 2012 and NIS 1.89 billion in 2011.
The expense for credit losses fell to NIS 268 million in 2013 from NIS 1.23 billion in 2012. Net interest income fell to NIS 7.35 billion in 2013 from NIS 7.4 billion in 2014, but non-interest income rose to NIS 5.52 billion from NIS 4.77 billion.
Operating and other expenses fell to NIS 8.93 billion in 2013 from NIS 9.1 billion in 2012.
The fourth quarter net profit was NIS 348 million, compared with a net loss of NIS 259 million in the corresponding quarter of 2012. The fourth quarter net profit was mainly due to the reduction in the expense for credit losses to NIS 231 million, the reduction in operating and other expenses to NIS 357 million, and a drop in the bank's share of net losses in subsidiaries to NIS 34 million.
Despite the higher profits, Bank Leumi's net return on equity was fairly low, at 7.6% in 2013, compared with 3.8% in 2012. The fourth quarter net return on equity rose to 5.4% from 4% in the corresponding quarter.
The salary cost of Bank Leumi chairman David Brodet was NIS 5.24 million in 2013, including a basic salary of NIS 2.16 million and a bonus of NIS 962,000. The salary cost of Bank Leumi CEO Rakefet Russak-Aminoach was NIS 6.28 million, including a basic salary of NIS 2.36 million and a bonus of NIS 1.45 million.
Published by Globes [online], Israel business news - www.globes-online.com - on March 31, 2014
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