Leumi warns on NIS 200-300 million Q1 loss

Bank Leumi Photo: Eyal Izhar

The loss is due to credit loss provisions due to the coronavirus pandemic.

Bank Leumi (TASE: LUMI) issued a profit warning for the first quarter of 2020. The bank, headed by CEO Hanan Friedman, said that following the coronavirus crisis and the falls on the TASE and global capital markets, the bank expects a loss of NIS 200-300 million in the first quarter of 2020.

Bank Hapoalim (TASE: POLI) has already reported its first quarter results which showed a 77% fall in profit due to a large credit loss provision for the coronavirus outbreak.

Leumi is expected to report even weaker results because as the last major bank to report its 2019 results, Hapoalim had already made some credit provision for Covid-19 in its fourth quarter 2019 report.

On a more positive note, Leumi said, "After the date of the balance sheet there wasa a rise in the capital markets which significantly offset the losses recorded by securities in the first quarter of the year."

Published by Globes, Israel business news - en.globes.co.il - on May 17, 2020

© Copyright of Globes Publisher Itonut (1983) Ltd. 2020

Bank Leumi Photo: Eyal Izhar
Bank Leumi Photo: Eyal Izhar
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