Bank Leumi (TASE: LUMI), managed by president and CEO Rakefet Russak-Aminoach, today published its 2016 results, with interest revenue rising from NIS 7.1 billion in 2015 to NIS 7.5 billion in 2016, a 5.6% increase.
The bank's net profit dipped from NIS 2.83 billion in 2015 to NIS 2.79 billion in 2016, a 2% drop. Bank Hapoalim's (TASE: POLI) net profit in 2016 was NIS 2.62 billion. Bank Leumi explained that the increase in its interest revenue, lower credit losses, and a cut in its operating expenses had been offset by a substantial decrease in one-time revenue and higher tax expenses.
Bank Leumi's return on capital in 2016 was 9.3%, compared with 10.3% in 2015. The bank's core capital adequacy ratio rose from 9.58% at the end of 2015 to 11.15% at the end of 2016, and its ordinary capital adequacy ratio reached 15.21%.
For the first time in six years, Bank Leumi has decided to distribute a dividend. The bank's board of directors decided to distribute 20% of the bank's quarterly profit as a dividend, starting in the first quarter of 2017.
Bank Leumi's equity grew 9% to NIS 31.3 billion in 2016, and its balance sheet was up 5% to NIS 438.6 billion.
Net credit to the public inched up 0.2% to NIS 261.9 billion, deposits from the public rose 5.5% to NIS 346.9 billion, and total managed assets grew 2.9% to NIS 820.6 billion.
Bank Leumi shed over 1,000 employees in 2016, and 2,300 employees have left the bank over the past five years.
Published by Globes [online], Israel Business News - www.globes-online.com - on March 30, 2017
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