Bank Leumi (TASE: LUMI), headed by Rakefet Russak-Aminoach, has reported a net profit for the second quarter of 2016 of NIS 970 million, up 87% in comparison with the second quarter of 2015.
The bank's return on equity in the quarter was 13.7%, which compares with 7.8% in the corresponding quarter. Return on equity in the first half of 2016 was 10.1%, which compares with 13.1% in the first half of 2015.
Bank Leumi explains the rise in net profit by the deal to sell its rights in Visa Europe (NIS 242 million) and recognition of a net tax shield of NIS 187 million on account of subsidiaries liquidated and sold, offset by the effect of grants to employees totaling NIS 99 million in connection with the bank's streamlining program.
The bank reported revenue (recoveries) on credit losses of NIS 277 million for the first half of 2016, 0.231% of total credit to the public, which compares with a loss of NIS 93 million in the first half of 2015.
Net credit to the public was NIS 266.0 billion at the end of the second quarter of 2016, which compares with NIS 261.4 billion at the end of 2015, representing growth of 1.8%. In comparison with the end of the second quarter of 2015, credit to the public grew 4.5%.
Return on equity in the second quarter of 2016 was 13.7%, compared with 7.8% in the corresponding quarter.
The bank's tier one capital adequacy ratio at the end of the second quarter of 2016 was 10.4%, which compares with 9.52% at the end of the second quarter of 2015.
Published by Globes [online], Israel business news - www.globes-online.com - on August 15, 2016
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