Mizrahi Tefahot profit grows but no dividend

Eldad Fresher Photo: Tamar Matsafi

Mizrahi Tefahot Bank has decided against paying a dividend for the third quarter because of the investigation into its affairs by the US Department of Justice.

Mizrahi Tefahot Bank (TASE:MZTF) posted a NIS 454 million profit for the third quarter, 70% higher than the NIS 261 million profit figure in the third quarter of 2017, which was affected by one-time employment costs of NIS 161 million.

In the first nine months of 2018, Mizrahi Tefahot's profit totaled NIS 1 billion, 2% higher than in the corresponding period of 2017. Earlier this year, the bank made a provision of NIS 425 million ($117 million) against the investigation being carried out into the bank's conduct by the US Department of Justice.

Because of that investigation, into alleged assistance to US citizens in evading tax, Mizrahi Tefahot will not pay a dividend for the third quarter.

The third quarter profit represents an annualized return on equity of 13.4%, which compares with 8% in the corresponding quarter. For the first nine months the annualized return on equity was 9.7%, which compares with 10.1% in the corresponding period of 2017.

Among the main factors affecting its third quarter results the bank cites a 25% rise in financing income, and a steeper rise in the Consumer Price Index than last year.

Net credit to the public totaled NIS 190 billion at the end of the third quarter, 6% more than at the end of the third quarter of 2017. The business credit portfolio grew by 12% in the third quarter.

Mizrahi Tefahot CEO Eldad Fresher said, "The third quarter figures reflect continued growth in the bank's business, in line with the strategic plan. The financials present growth in most balance sheet items, in revenue, and in profitability."

Published by Globes, Israel business news - en.globes.co.il - on November 13, 2018

© Copyright of Globes Publisher Itonut (1983) Ltd. 2018

Eldad Fresher Photo: Tamar Matsafi
Eldad Fresher Photo: Tamar Matsafi
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