Reflects continued growth and high profitability while
maintaining financial stability
TEL
AVIV, Israel, Aug. 15,
2024 /PRNewswire/ -- First International Bank of
Israel (TASE: FIBI) one of
Israel's major banking groups,
today announced its results for the second quarter and first half
of 2024, ended June 30, 2024.
Financial Highlights
- Second quarter of 2024 net income of NIS 609 million and
return on equity of 19.6%
- First half 2024 net income of NIS 1,178 million and return
on equity of 19.2%
- Credit to the public increased 4.5% compared to end of the
first quarter of 2024 and 2.4% compared to 2023-end
- First half 2024 income from credit losses of approximately
NIS 73 million, compared to expenses
of NIS 171 million in the first half
of 2023 with approximately half of the income from collections from
previously written-off customer debt
- Deposit to the public increased by 3.8% compared to the first
quarter of 2024, and by 6.8% compared to the 2023-end.
- The portfolio of customers' assets increased 4.8% compared to
the first quarter of 2024, and by 12.4% compared to the 2023-end,
to approximately NIS 755
billion.
- Equity attributed to shareholders of the Bank increased by
11.7% to NIS 12.6 billion, compared to the end of the
first half of 2023
- Tier 1 capital ratio was 11.34%
- The Bank's Board of Directors decided to distribute a dividend
amounting to 40% of the net income for the quarter
Financial Results of the Second Quarter 2024
Net income for the First International Bank Group
was NIS 609 million in the second
quarter of 2024, an increase of 3.7 % compared to the second
quarter last year and an increase/decrease of 7 % compared to the
prior quarter. The return on equity was 19.6%. The net
income for the first half of the year was NIS 1,178 million and the return on equity was
19.2%.
Revenues were NIS 3,220
million in the first half of the year, compared to
NIS 3,435 million in the first half
of last year. The financing income from operating activities
amounted to NIS 2,435 million in the
first half of the year, compared to NIS
2,682 million in the first half of last year, a decrease of
9.2%. The decrease was due, among other factors, by customers
shifting funds into interest-bearing accounts, rather than
maintaining non-interest-bearing current account balances.
Income from credit losses amounted to NIS 73 million in the first half of the year,
compared with expenses of NIS 171
million in the first half of last year. Approximately
NIS 40 million of the income was due
to income from specific customers from the collection of debts that
had been previously written off in the financial accounts, with the
balance due to a decrease in the collective provision for credit
losses. In the second quarter of 2024, the income from credit
losses amounted to NIS 71 million
compared with expenses of NIS 99
million in the prior quarter.
The high-quality credit to non-performing loans ratio
(NPL) was stable and was 0.59% at the end of the second
quarter. The ratio indicates the quality of the credit portfolio
(the balance of the non-accrual loans or those that are in arrears
of 90 days or more) as a percentage of total credit to the public.
The total coverage ratio (the percentage of the total
allowance for credit losses to the total amount of the credit to
the public) was 1.44%, compared to 1.23% as of the end of the first
half of last year.
Operating and other expenses were stable at NIS 1,463 million in the first half of the year,
compared to NIS 1,464 million in the
first half of last year. The efficiency ratio was 45.4%.
Credit to the public was approximately NIS 122 billion, an increase of 2.4% compared to
the 2023-end and an increase of 4.5% compared to the end of the
first quarter of 2024.
Deposits by the public were approximately
NIS 204.1 billion, an increase of
6.8% compared to the 2023-end and an increase of 3.8% compared to
the end of the first quarter of 2024.
The total customers' assets portfolio increased by
4.8% compared to the first quarter of 2024 and by 12.4% compared to
the 2023-end, amounting to approximately NIS
755 billion.
Equity attributed to the Bank's shareholders increased to
approximately NIS 12.6 billion, an
increase of 4.5% compared to the 2023-end and increase by 11.7%
compared to the end of the first half of last year. The tier 1
capital ratio was 11.34%, which is approximately 23% above the
regulatory equity requirement. The liquidity coverage ratio
was high and stood at 172%.
Taking into consideration the Supervisor of the Bank's
directives with regard to capital planning and profit
distribution policies, the Board of Directors decided to
approve the distribution of a cash dividend to the
shareholders at a rate of 40% of net income. The Board of Directors
will continue to discuss the implementation of the Bank's dividend
distribution policy, in light of the developments and their impact
on the economy and on the Bank.
Management Comment
Eli Cohen, CEO of First
International Bank, commented, "We continued to focus on growth
across all types of activities and our results reflect this, both
in terms of credit balances and in the volume of the customers'
assets, which have grown in all segments. The growth in credit is
being carried out while maintaining qualitative and professional
underwriting and an appropriate level of risk. The overall value of
our customers' balances has increased by more than 23% in the past
year, reflecting the trust that our customers place in our
stability and us.
"We at the First International Bank have a strategy of providing
added value to customers through our unique value propositions, our
new and innovative products, as well as our professional advice
across all core activities and sectors.
The State of Israel has been
going through a challenging period of warfare on multiple fronts
for over 10 months, which is having significant and complex
economic implications. At the First International Bank, we
hold the Otzar HaChayal brand, providing banking for the security
forces, offering them the best banking value proposition. We are
continuing to assist those customers who have been impacted
directly by the security situation, including reserve soldiers,
evacuees and others. Support includes waiving charges and interest
on overdrafts, deferring repayments on loans and mortgages,
offering interest-free loans to reservists and career soldiers,
providing assistance funding to small businesses, and more.
The First International Bank looks forward to the safe return of
all the hostages, as well as the safe return home of the IDF
soldiers and all the evacuees."
|
CONDENSED PRINCIPAL
FINANCIAL INFORMATION AND PRINCIPAL EXECUTION
INDICES
|
|
|
|
|
|
|
|
|
Principal financial ratios
|
|
For the six months
ended June 30,
|
|
For the year
ended
December 31,
|
|
|
2024
|
|
2023
|
|
2023
|
|
|
|
|
|
|
in %
|
|
Principal execution indices
|
|
|
|
|
|
|
|
Return on equity
attributed to shareholders of the Bank(1)
|
19.2
|
22.6
|
19.7
|
|
Return on average
assets(1)
|
1.05
|
1.22
|
1.06
|
|
Ratio of equity capital
tier 1
|
11.34
|
10.64
|
11.35
|
|
Leverage
ratio
|
5.20
|
5.20
|
5.26
|
|
Liquidity coverage
ratio
|
172
|
134
|
156
|
|
Net stable funding
ratio
|
149
|
134
|
146
|
|
Ratio of total income
to average assets (1)
|
2.9
|
3.4
|
3.2
|
|
Ratio of interest
income, net to average assets (1)
|
2.1
|
2.6
|
2.4
|
|
Ratio of fees to
average assets (1)
|
0.6
|
0.8
|
0.7
|
|
Efficiency
ratio
|
45.4
|
42.6
|
43.5
|
|
Credit quality indices
|
|
|
|
|
Ratio of provision for
credit losses to credit to the public
|
1.32
|
1.12
|
1.36
|
|
Ratio of total
provision for credit losses (2) to credit to the
public
|
1.44
|
1.23
|
1.50
|
|
Ratio of non-accruing
debts or in arrears of 90 days or more to credit to the
public
|
0.59
|
0.49
|
0.60
|
|
Ratio of provision for
credit losses to total non-accruing credit to the public
|
230.4
|
237.9
|
234.5
|
|
Ratio of net write-offs
to average total credit to the
public (1)
|
(0.08)
|
-
|
0.03
|
|
Ratio of expenses
(income) for credit losses to average total credit to the
public (1)
|
(0.12)
|
0.29
|
0.42
|
|
|
|
|
|
|
Principal data from the statement of
income
|
|
For the six months
ended June 30,
|
|
|
2024
|
|
2023
|
|
|
|
|
NIS million
|
|
Net profit attributed
to shareholders of the Bank
|
|
1,178
|
|
1,218
|
|
Interest Income,
net
|
2,336
|
2,593
|
|
Expenses (income) from
credit losses
|
(73)
|
171
|
|
Total non-Interest
income
|
884
|
842
|
|
Of which:
Fees
|
727
|
756
|
|
Total operating and
other expenses
|
1,463
|
1,464
|
|
Of which:
Salaries and related expenses
|
872
|
915
|
|
Primary net profit per
share of NIS 0.05 par value (NIS)
|
11.74
|
12.14
|
|
|
|
|
|
|
|
|
Principal data from the balance
sheet
|
|
30.6.24
|
|
30.6.23
|
|
31.12.23
|
|
|
|
|
|
|
NIS million
|
|
Total assets
|
|
232,809
|
|
208,130
|
|
221,593
|
|
of which:
Cash and deposits with banks
|
77,663
|
58,553
|
68,866
|
|
Securities
|
27,237
|
22,963
|
26,985
|
|
Credit to the public,
net
|
120,436
|
118,686
|
117,622
|
|
Total
liabilities
|
219,604
|
196,313
|
208,947
|
|
of which:
Deposits from the public
|
204,069
|
179,013
|
191,125
|
|
Deposits from
banks
|
2,735
|
4,145
|
4,314
|
|
Bonds and subordinated
capital notes
|
4,689
|
4,713
|
4,767
|
|
Capital attributed to
the shareholders of the Bank
|
12,615
|
11,292
|
12,071
|
|
|
|
|
|
|
|
|
Additional data
|
|
30.6.24
|
|
30.6.23
|
|
31.12.23
|
|
Share price (0.01
NIS)
|
|
14,410
|
|
14,420
|
|
14,990
|
|
Dividend per share
(0.01 NIS)
|
495
|
486
|
795
|
(1) Annualized.
(2) Including provision in respect of off-balance sheet
credit instruments.
|
CONSOLIDATED
STATEMENT OF INCOME
|
|
(NIS
million)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months
ended June 30
|
|
For the six months
ended June 30
|
|
For the year
Ended
December 31
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
2023
|
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
|
(audited)
|
|
Interest
Income
|
|
2,879
|
|
2,523
|
|
5,455
|
|
4,699
|
|
9,850
|
|
Interest
Expenses
|
1,658
|
1,205
|
3,119
|
2,106
|
4,884
|
|
Interest Income,
net
|
1,221
|
1,318
|
2,336
|
2,593
|
4,966
|
|
Expenses (income) from
credit losses
|
(71)
|
99
|
(73)
|
171
|
502
|
|
Net Interest Income
after expenses from credit losses
|
1,292
|
1,219
|
2,409
|
2,422
|
4,464
|
|
Non- Interest
Income
|
|
|
|
|
|
|
Non-Interest Financing
income
|
47
|
43
|
147
|
79
|
142
|
|
Fees
|
362
|
368
|
727
|
756
|
1,502
|
|
Other income
|
9
|
6
|
10
|
7
|
8
|
|
Total non- Interest
income
|
418
|
417
|
884
|
842
|
1,652
|
|
Operating and other
expenses
|
|
|
|
|
|
|
Salaries and related
expenses
|
430
|
466
|
872
|
915
|
1,746
|
|
Maintenance and
depreciation of premises and equipment
|
86
|
83
|
173
|
167
|
341
|
|
Amortizations and
impairment of intangible assets
|
32
|
30
|
63
|
60
|
122
|
|
Other
expenses
|
184
|
161
|
355
|
322
|
668
|
|
Total operating and
other expenses
|
732
|
740
|
1,463
|
1,464
|
2,877
|
|
Profit before
taxes
|
978
|
896
|
1,830
|
1,800
|
3,239
|
|
Provision for taxes on
profit
|
364
|
307
|
643
|
622
|
1,090
|
|
Profit after
taxes
|
614
|
589
|
1,187
|
1,178
|
2,149
|
|
The bank's share in
profit of equity-basis investee, after taxes
|
22
|
19
|
40
|
84
|
113
|
|
Net profit:
|
|
|
|
|
|
|
Before attribution to
non–controlling interests
|
636
|
608
|
1,227
|
1,262
|
2,262
|
|
Attributed to
non–controlling interests
|
(27)
|
(21)
|
(49)
|
(44)
|
(90)
|
|
Attributed to
shareholders of the Bank
|
609
|
587
|
1,178
|
1,218
|
2,172
|
|
|
|
|
|
|
|
|
NIS
|
|
Primary profit per
share attributed to the shareholders
of the Bank
|
|
|
|
|
|
|
|
|
|
|
|
Net profit per share of
NIS 0.05 par value
|
6.07
|
5.85
|
11.74
|
12.14
|
21.65
|
|
STATEMENT OF
COMPREHENSIVE INCOME
|
|
(NIS
million)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months
ended June 30
|
|
For the six months
ended June 30
|
|
For the year
Ended
December 31
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
2023
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(audited)
|
|
Net profit before
attribution to non‑controlling interests
|
|
636
|
|
608
|
|
1,227
|
|
1,262
|
|
2,262
|
|
Net profit attributed
to non‑controlling interests
|
(27)
|
(21)
|
(49)
|
(44)
|
(90)
|
|
Net profit attributed
to the shareholders of the Bank
|
609
|
587
|
1,178
|
1,218
|
2,172
|
|
Other comprehensive
income (loss) before taxes:
|
|
|
|
|
|
|
Adjustments of
available for sale bonds to fair value, net
|
(200)
|
56
|
(244)
|
26
|
213
|
|
Adjustments of
liabilities in respect of employee benefits(1)
|
1
|
6
|
12
|
3
|
25
|
|
Other comprehensive
income (loss) before taxes
|
(199)
|
62
|
(232)
|
29
|
238
|
|
Related tax
effect
|
73
|
(22)
|
90
|
(11)
|
(81)
|
|
Other comprehensive
income (loss) before attribution to non‑controlling interests,
after
taxes
|
(126)
|
40
|
(142)
|
18
|
157
|
|
Less other
comprehensive income (loss) attributed to non‑controlling
interests
|
(5)
|
3
|
(5)
|
5
|
9
|
|
Other comprehensive
income (loss) attributed to the shareholders of the Bank,
after taxes
|
(121)
|
37
|
(137)
|
13
|
148
|
|
Comprehensive income
before attribution to non‑controlling interests
|
510
|
648
|
1,085
|
1,280
|
2,419
|
|
Comprehensive income
attributed to non‑controlling interests
|
(22)
|
(24)
|
(44)
|
(49)
|
(99)
|
|
Comprehensive income
attributed to the shareholders of the Bank
|
488
|
624
|
1,041
|
1,231
|
2,320
|
(1) Mostly reflects adjustments in respect of actuarial
assessments as of the end of the period regarding defined benefits
pension plans, of amounts recorded in the past in other
comprehensive income.
|
CONSOLIDATED BALANCE
SHEET
|
|
(NIS
million)
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
December 31,
|
|
|
2024
|
|
2023
|
|
2023
|
|
(unaudited)
|
(unaudited)
|
(audited)
|
|
Assets
|
|
|
|
|
|
|
|
Cash and deposits with
banks
|
77,663
|
58,553
|
68,866
|
|
Securities
|
27,237
|
22,963
|
26,985
|
|
Securities
borrowed
|
30
|
104
|
57
|
|
Credit to the
public
|
122,044
|
120,028
|
119,240
|
|
Provision for Credit
losses
|
(1,608)
|
(1,342)
|
(1,618)
|
|
Credit to the public,
net
|
120,436
|
118,686
|
117,622
|
|
Credit to the
government
|
1,421
|
961
|
1,055
|
|
Investment in investee
company
|
825
|
751
|
786
|
|
Buildings and
equipment
|
859
|
880
|
877
|
|
Intangible
assets
|
348
|
309
|
328
|
|
Assets in respect of
derivative instruments
|
2,670
|
3,588
|
3,651
|
|
Other
assets(2)
|
1,320
|
1,335
|
1,366
|
|
Total assets
|
232,809
|
208,130
|
221,593
|
|
Liabilities and Capital
|
|
|
|
|
Deposits from the
public
|
204,069
|
179,013
|
191,125
|
|
Deposits from
banks
|
2,735
|
4,145
|
4,314
|
|
Deposits from the
Government
|
719
|
608
|
750
|
|
Securities lent or sold
under agreements to repurchase
|
744
|
-
|
-
|
|
Bonds and subordinated
capital notes
|
4,689
|
4,713
|
4,767
|
|
Liabilities in respect
of derivative instruments
|
2,388
|
3,184
|
3,784
|
|
Other
liabilities(1)(3)
|
4,260
|
4,650
|
4,207
|
|
Total
liabilities
|
219,604
|
196,313
|
208,947
|
|
Shareholders'
equity
|
12,615
|
11,292
|
12,071
|
|
Non-controlling
interests
|
590
|
525
|
575
|
|
Total
capital
|
13,205
|
11,817
|
12,646
|
|
Total liabilities and
capital
|
232,809
|
208,130
|
221,593
|
(1) Of which: provision for credit losses in respect of
off-balance sheet credit instruments in the amount of NIS 152 million and NIS
137 million and NIS 165
million at 30.6.24, 30.6.23
and 31.12.23, respectively.
(2) Of which: other assets measured at fair value in the
amount of NIS 3 million and
NIS 12 million and NIS 10 million at 30.6.24, 30.6.23 and 31.12.23, respectively.
(3) Of which: other liabilities measured at fair value in the
amount of NIS 28 million and
NIS 24 million and NIS 11 million at 30.6.24, 30.6.23 and 31.12.23, respectively.
|
STATEMENT OF CHANGES
IN EQUITY
|
|
(NIS
million)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended June 30, 2024
(unaudited)
|
|
|
Share
capital and
premium (1)
|
|
Accumulated
other
comprehensive
loss
|
|
Retained
earnings (2)
|
|
Total
share-
holders'
equity
|
|
Non-
controlling
interests
|
|
Total
capital
|
|
Balance as of March 31,
2024
|
927
|
(171)
|
11,599
|
12,355
|
597
|
12,952
|
|
Net profit for the
period
|
-
|
-
|
609
|
609
|
27
|
636
|
|
Dividend
|
-
|
-
|
(228)
|
(228)
|
(29)
|
(257)
|
|
Other comprehensive
loss, after tax effect
|
-
|
(121)
|
-
|
(121)
|
(5)
|
(126)
|
|
Balance as at June 30,
2024
|
927
|
(292)
|
11,980
|
12,615
|
590
|
13,205
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended June 30, 2023
(unaudited)
|
|
|
Share
capital and
premium (1)
|
|
Accumulated
other
comprehensive
income (loss)
|
|
Retained
earnings (2)
|
|
Total
share-
holders'
equity
|
|
Non-
controlling
interests
|
|
Total
capital
|
|
Balance as of March 31,
2023
|
927
|
(327)
|
10,288
|
10,888
|
501
|
11,389
|
|
Net profit for the
period
|
-
|
-
|
587
|
587
|
21
|
608
|
|
Dividend
|
-
|
-
|
(220)
|
(220)
|
-
|
(220)
|
|
Other comprehensive
income, after tax effect
|
-
|
37
|
-
|
37
|
3
|
40
|
|
Balance as at June 30,
2023
|
927
|
(290)
|
10,655
|
11,292
|
525
|
11,817
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the six months ended June 30, 2024
(unaudited)
|
|
|
Share
capital and
premium (1)
|
|
Accumulated
other
comprehensive
loss
|
|
Retained
earnings (2)
|
|
Total
share-
holders'
equity
|
|
Non-
controlling
interests
|
|
Total
capital
|
|
Balance as at December
31, 2023 (audited)
|
927
|
(155)
|
11,299
|
12,071
|
575
|
12,646
|
|
Net profit for the
period
|
-
|
-
|
1,178
|
1,178
|
49
|
1,227
|
|
Dividend
|
-
|
-
|
(497)
|
(497)
|
(29)
|
(526)
|
|
Other comprehensive
loss, after tax effect
|
-
|
(137)
|
-
|
(137)
|
(5)
|
(142)
|
|
Balance as at June 30,
2024
|
927
|
(292)
|
11,980
|
12,615
|
590
|
13,205
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the six months ended June 30, 2023
(unaudited)
|
|
|
Share
capital and
premium (1)
|
|
Accumulated
other
comprehensive
income (loss)
|
|
Retained
earnings (2)
|
|
Total
share-
holders'
equity
|
|
Non-
controlling
interests
|
|
Total
capital
|
|
Balance as at December
31, 2022 (audited)
|
927
|
(303)
|
9,935
|
10,559
|
476
|
11,035
|
|
Adjustment of the
opening balance, net of tax, due to the effect of initial
implementation in investee company*
|
-
|
-
|
(10)
|
(10)
|
-
|
(10)
|
|
Adjusted balance at
January 1, 2023, following initial implementation
|
927
|
(303)
|
9,925
|
10,549
|
476
|
11,025
|
|
Net profit for the
period
|
-
|
-
|
1,218
|
1,218
|
44
|
1,262
|
|
Dividend
|
-
|
-
|
(488)
|
(488)
|
-
|
(488)
|
|
Other comprehensive
income, after tax effect
|
-
|
13
|
-
|
13
|
5
|
18
|
|
Balance as at June 30,
2023
|
927
|
(290)
|
10,655
|
11,292
|
525
|
11,817
|
|
STATEMENT OF CHANGES
IN EQUITY (CONT'D)
|
|
(NIS
million)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the year ended December 31, 2023
(audited)
|
|
|
Share
capital and
premium(1)
|
|
Accumulated
other
comprehensive
income (loss)
|
|
Retained
earnings(2)
|
|
Total
|
|
Non-
controlling
interests
|
|
Total
capital
|
|
Balance as at December
31, 2022
|
927
|
(303)
|
9,935
|
10,559
|
476
|
11,035
|
|
Adjustment of the
opening balance, net of tax, due to the effect of initial
implementation in investee company *
|
-
|
-
|
(10)
|
(10)
|
-
|
(10)
|
|
Adjusted balance at
January 1, 2023, following initial implementation
|
927
|
(303)
|
9,925
|
10,549
|
476
|
11,025
|
|
Net profit for the
period
|
-
|
-
|
2,172
|
2,172
|
90
|
2,262
|
|
Dividend
|
-
|
-
|
(798)
|
(798)
|
-
|
(798)
|
|
Other comprehensive
income, after tax effect
|
-
|
148
|
-
|
148
|
9
|
157
|
|
Balance as at December
31, 2023
|
927
|
(155)
|
11,299
|
12,071
|
575
|
12,646
|
* Cumulative effect of the initial
implementation of US accounting principles in the matter of
financial instruments - credit losses (ASC-326).
(1) Including share premium of NIS
313 million (as from 1992 onwards).
(2) Including an amount of NIS 2,391
million which cannot be distributed as dividend.
Contact:
Dafna
Zucker
First International Bank of Israel
zucker.d@fibi.co.i
+972-3-519-6224
View original
content:https://www.prnewswire.com/news-releases/first-international-bank-of-israel-reports-financial-results-for-the-second-quarter-of-2024-302223447.html
SOURCE First International Bank of Israel