Mizrahi Tefahot Bank, headed by Moshe Lari, posted a net profit of NIS 1.05 billion for the second quarter of 2022, representing a 6.6% rise in comparison with the profit of NIS 988 million in the corresponding quarter of 2021. For the first half year, the bank’s net profit was NIS 2.2 billion, 32.6% higher than in the first half of 2021. The bank’s return on equity was 19.4% in the second quarter and 20.6% in the first half year.
Following these results, Mizrahi Tefahot Bank will resume paying dividends, and will distribute NIS 316 million, representing 30% of the second quarter profit, after refraining from paying a dividend for the first quarter in order to be able to expand its credit portfolio.
Mizrahi Tefahot’s credit to the public has continued to grow rapidly, reaching almost NIS 300 billion at the end of the second quarter, 17.3% more than at the end of the second quarter of 2021. Mizrahi Tefahot’s mortgage loan portfolio totaled NIS 189.4 billion at the end of the second quarter of 2022, 15.8% more than at the end of the corresponding quarter and 8.3% more than at the end of 2021.
The exceptional growth in the credit portfolio applies to all sectors, but particularly to the corporate sectors, which grew by double digit percentages. Credit to large businesses grew by an impressive 39.3% in comparison with the end of the second quarter of 2021.
Alongside this, changes in the macro-economic environment, as inflation and interest rates rose, also contributed to the bank’s profitability. Net interest income was NIS 2.5 billion in the first half of 2022, 23% more than in the first half of 2021.
Income from mortgage loans totaled NIS 609 million in the second quarter, 9.5% more than in the corresponding quarter. In the first half year, income from mortgage loans was NIS 1.21 billion, 11% more than in the first half of 2021.
Published by Globes, Israel business news - en.globes.co.il - on August 15, 2022.
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