The Israeli bank's credit loss provisions jumped to NIS 317 million from NIS 70 million in the third quarter of 2019.
Mizrahi Tefahot Bank (TASE:MZTF) reported an 8.3% fall in profit to NIS 387 million in the third quarter of 2020 from NIS 422 million in the third quarter of 2019. This was due to the quadrupling of provisions for credit losses due to the Covid-19 pandemic. This was above the analysts' consensus for Mizrahi's profit of NIS 347 million.
Financing income rose 11.5% to NIS 1.52 billion, while credit loss provisions jumped to NIS 317 million from NIS 70 million in the third quarter of 2019.
CEO Moshe Lari said, "Completing the deal to acquire Union Bank helped Mizrahi Tefahot move up a league and enlarge its share of the banking system, on the basis of second quarter data to 22% of credit to the public and 18.6% of the public's deposits, above the targets of the current strategic plan. The new strategic plan for 2021-2025 will soon be brought for approval by the bank's board of directors."
Mizrahi's return on equity was 9% in the first nine months of 2020. The bank's Tier 1 ratio of capital to risk components fell to 9.98% in the quarter from 10.13% in the third quarter of 2019.
Published by Globes, Israel business news - en.globes.co.il - on November 23, 2020
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Moshe Lari / Photo: Mizrahi Tefahot Spokesperson