Bank Leumi (TASE:LUMI) reported NIS 981 million net profit in the first quarter of 2023, despite a huge write down of over NIS 1 billion in the valuation of US bank Valley National, in which it holds a 14.2% stake. Without the one-time write down, Leumi would have reported net profit of NIS 2.1 billion, compared with NIS 1.6 billion in the first quarter of 2022.
Return on equity in the first quarter of 2023 was 7.8% and 17% without the one-off deduction in the value of Valley National shares, compared with 15.6% in the corresponding quarter of 2022.
Following the first quarter results, Bank Leumi will distribute a dividend of NIS 294 million, which represents 30% of the net profit in the first quarter of 2023. At the same time the board of directors authorized the buy-back of shares worth NIS 800 million.
Most of the bank's profit was due to a rise in interest income, which took place alongside growth in Leumi's business, commercial and mortgage credit portfolio. In the first quarter of 2023, the credit portfolio grew by 4.9%, the business portfolio grew 10.4%, the commercial portfolio grew 3.6%, and the mortgage portfolio grew by 2%
Net income from interest was NIS 3.9 billion in the first quarter of 2023 compared with NIS 2.7 billion in the corresponding quarter of 2022.
Published by Globes, Israel business news - en.globes.co.il - on May 23, 2023.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2023.