Mizrahi Tefahot Bank (TASE: MZTF), headed by Moshe Lari, posted a net profit for the second quarter of 2023 of NIS 1.4 billion, 33% higher than the profit for the corresponding quarter last year. For the first half year, the bank’s net profit was NIS 2.77 billion, 25.3% higher than in the first six months of 2022.
Mizrahi Tefahot’s profit gives it the highest return on equity among Israel’s major banks for the second quarter, at an annualized 22%. First International Bank’s return on equity for the quarter was 21.3%, Bank Leumi’s was 19.4%; Discount Bank’s was 18%; and Bank Hapoalim’s was 15.8%. For the first half year, First International Bank leads with an annualized return on equity of 22.6%, just beating Mizrahi Tefahot’s 22.2%.
As with the other banks, Mizrahi Tefahot’s increased profit stems mainly from higher interest rates. Its net interest income for the second quarter totaled NIS 3.18 billion, similar to the figure for the first quarter, and 30% higher than in the corresponding quarter of 2022.
Mizrahi Tefahot increased its provision for credit losses to NIS 247 million in the second quarter, which compares with NIS 107 in the corresponding quarter last year.
Mizrahi Tefahot has the largest mortgage loan portfolio in the banking system, with a market share of 36%, but its credit loss provision was smaller than those of Bank Leumi and Discount Bank, and much smaller than that of Bank Hapoalim, which made a provision of NIS 579 million in the second quarter.
Mizrahi Tefahot announced a dividend of NIS 489 million, 35% of the second quarter profit.
Published by Globes, Israel business news - en.globes.co.il - on August 15, 2023.
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