TEL AVIV, Israel, Nov. 26, 2019 /PRNewswire/ -- First International Bank of Israel (TASE: FIBI) one of Israel's major banking groups, today announced its results for the third quarter and first nine months of 2019.

Third Quarter 2019 Highlights

  • Q3 net earnings of NIS 236 million, growth of 11.3% year-over-year;
  • Return on Equity: 11.7%;

First Nine Months of 2019 Highlights

  • Net earnings increased by 13.2% to NIS 643 million year-over-year;
  • Return on Equity: 10.6%;
  • Efficiency ratio improved to 64.9% versus 67.7% last year;
  • Growth of 3.6% in credit to the public as from beginning of 2019;
  • Ratio of Tier I equity capital to risk assets: 10.79%

Profitability

First International Bank Group's third quarter net earnings amounted to NIS 236 million, an increase of 11.3% over the third quarter of last year representing a return on equity – 11.7%.

In the first nine months of the year, net earnings increased by 13.2% to NIS 643 million, while return on equity reached 10.6%.

Growth

Credit to the public, net, increased by 3.6% as of the start of 2019 (i.e. as compared with the end of 2018) and amounted to NIS 87,310 million. The growth in credit is highlighted across all the segments of operation: private customers – 3.9%, small and middle market businesses – 2.1%, and large businesses – 4%.

The ratio of credit loss expenses to average balance of credit to the public, amounted to 0.14%, compared with a ratio of 0.21% in the corresponding period of last year.

Financing profit, net, increased in the first nine months of the year by 4.4% and amounted to NIS 2,117 million. Financing profit from current operations increased by 6.9% and amounted to NIS 2,060 million.

Efficiency

The Bank continues to improve its efficiency: the efficiency ratio improved to 64.9% compared with 67.7% in the corresponding period last year and compared to 68.4% in 2018. Operating and other expenses decreased in the first nine months of the year by 4.4% versus the corresponding period last year, and amounted to NIS 2 billion. The reduction in expenses can be seen across the various expense items: payroll and related benefits – a reduction of 2%, depreciation and maintenance of buildings and equipment – a reduction of 5%.

Financial stability and dividend distribution

The Tier I equity capital ratio amounted to 10.79%, and the comprehensive capital ratio amounted to 13.71%.

The First International Bank has a dividend distribution policy of up to 50% of net earnings, and accordingly, since the beginning of the year, the Bank has distributed total dividends amounting to NIS 300 million. This represents a dividend yield of 4.6%.

Subsequent to the date of the financial statements, the Board of Directors of the Bank has resolved to distribute a further dividend in the amount of NIS 110 million.

Management Comment

Ms. Smadar Barber-Tsadik, CEO of the First International Bank stated that: "The financial results of the Bank reflect the continuation of the process we have led at the Bank, a process of which the essence is growth and efficiency. The results of our merger with Otzar Hachayal Bank, which is one of the key moves that we have recently taken has begun to show its effect both with respect to cost savings and to growth across our areas of operations. Additional significant moves we have made at the Bank are the intensification of capital market operations, a continuation of the consistent and continuing growth trends in credit, as well as developments in the digital field. This has enabled us to offer our customers with a personal and professional service, alongside an innovative and advanced digital service. We have implemented improvements to our digital strategy and IT infrastructure to improve our competitiveness, enabling us to provide an efficient service and continuing growth."

 

CONSOLIDATED STATEMENT OF INCOME

(NIS million)




For the three months
ended September 30


For the nine months
ended September 30


For the year Ended
December 31



2019


2018


2019


2018


2018


(unaudited)

(unaudited)

(unaudited)

(unaudited)


(audited)

Interest Income


699


756


2,337


2,229

3,001

Interest Expenses

57

122

395

396

515

Interest Income, net

642

634

1,942

1,833

2,486

Expenses from credit losses

33

49

92

130

166

Net Interest Income after expenses from credit losses

609

585

1,850

1,703

2,320

Non- Interest Income






Non-Interest Financing income

63

108

175

195

231

Fees

325

322

960

985

1,325

Other income

3

2

5

77

81

Total non- Interest income

391

432

1,140

1,257

1,637

Operating and other expenses






Salaries and related expenses

394

406

1,215

1,241

1,696

Maintenance and depreciation of premises and equipment

90

95

270

285

376

Amortizations and impairment of intangible assets

22

22

68

67

91

Other expenses

143

178

447

500

656

Total operating and other expenses

649

701

2,000

2,093

2,819

Profit before taxes

351

316

990

867

1,138

Provision for taxes on profit

119

103

357

302

408

Profit after taxes

232

213

633

565

730

The bank's share in profit of equity-basis investee, after taxes

15

9

39

28

37

Net profit:






Before attribution to non‑controlling interests

247

222

672

593

767

Attributed to non‑controlling interests

(11)

(10)

(29)

(25)

(34)

Attributed to shareholders of the Bank

236

212

643

568

733









NIS

Primary profit per share attributed to the shareholders 
     of the Bank











Net profit per share of NIS 0.05 par value

2.35

2.11

6.41

5.66

7.31

 

 

 

STATEMENT OF COMPREHENSIVE INCOME

(NIS million)




For the three months
ended September 30


For the nine months
ended September 30


For the year Ended
December 31



2019


2018


2019


2018


2018



(unaudited)


(unaudited)


(unaudited)


(unaudited)


(audited)

Net profit before attribution to non‑controlling interests


247


222


672


593


767

Net profit attributed to non‑controlling interests

(11)

(10)

(29)

(25)

(34)

Net profit attributed to the shareholders of the Bank

236

212

643

568

733

Other comprehensive income (loss) before taxes:






Adjustments of available for sale bonds (2018 - securities) to fair value, net

8

22

84

(48)

(102)

Adjustments of liabilities in respect of employee benefits(1)

(57)

13

(45)

91

37

Other comprehensive income (loss) before taxes

(49)

35

39

43

(65)

Related tax effect

17

(12)

(14)

(15)

22

Other comprehensive income (loss) before attribution to non‑controlling interests, after taxes

(32)

23

25

28

(43)

Less other comprehensive loss attributed to non‑controlling interests

(1)

-

-

(1)

(4)

Other comprehensive income (loss) attributed to the shareholders of the
Bank, after taxes

(31)

23

25

29

(39)

Comprehensive income before attribution to non‑controlling interests

215

245

697

621

724

Comprehensive income attributed to non‑controlling interests

(10)

(10)

(29)

(24)

(30)

Comprehensive income attributed to the shareholders of the Bank

205

235

668

597

694


(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 profit.

 

 

 

CONSOLIDATED BALANCE SHEET

(NIS million)






September 30,


December 31,





2019


2018


2018



(unaudited)

(unaudited)

(audited)

Assets





Cash and deposits with banks


34,516

32,835

31,303

Securities


10,453

11,880

12,595

Securities which were borrowed


126

904

863

Credit to the public


88,218

86,367

85,160

Provision for Credit losses


(908)

(883)

(868)

Credit to the public, net


87,310

85,484

84,292

Credit to the government


680

672

700

Investments in investee company


607

596

606

Premises and equipment


988

1,025

1,023

Intangible assets


227

223

239

Assets in respect of derivative instruments


1,078

1,009

1,399

Other assets(2)


1,003

1,223

1,100

Total assets


136,988

135,851

134,120

Liabilities Shareholders' Equity





Deposits from the public


116,292

113,804

111,697

Deposits from banks


464

857

1,150

Deposits from the Government


368

948

982

Bonds and subordinated capital notes


3,690

5,155

4,989

Liabilities in respect of derivative instruments


1,298

942

1,294

Other liabilities(1)(3)


6,066

5,735

5,595

Total liabilities


128,178

127,441

125,707

Capital attributed to the shareholders of the Bank


8,461

8,096

8,093

Non-controlling interests


349

314

320

Total equity


8,810

8,410

8,413

Total liabilities and shareholders' equity


136,988

135,851

134,120


(1)   Of which: provision for credit losses in respect of off-balance sheet credit instruments in the amount of NIS 60 million
and NIS 68 million and NIS 64 million at 30.9.19, 30.9.18 and 31.12.18, respectively.

(2)   Of which: other assets measured at fair value in the amount of NIS 49 million and NIS 392 million and NIS 426 million at
30.9.19, 30.9.18 and 31.12.18, respectively.

(3)   Of which: other liabilities measured at fair value in the amount of NIS 170 million and NIS 720 million and NIS 586
million at 30.9.19, 30.9.18 and 31.12.18, respectively.

 

 

STATEMENT OF CHANGES IN EQUITY

(NIS million)




For the three months ended September 30, 2019 (unaudited)



Share
capital and premium (1)


Accumulated
other
comprehensive income (loss)


Retained
earnings (2)


Total
share-
holders' equity


Non-
controlling interests


Total equity

Balance as of June 30, 2019

927

(95)

7,534

8,366

339

8,705

Net profit for the period

-

-

236

236

11

247

Dividend

-

-

(110)

(110)

-

(110)

Other comprehensive loss, after tax effect

-

(31)

-

(31)

(1)

(32)

Balance as at September 30, 2019

927

(126)

7,660

8,461

349

8,810
















For the three months ended September 30, 2018 (unaudited)



Share
capital and premium (1)


Accumulated
other
comprehensive income (loss)


Retained earnings (2)


Total
share-
holders' equity


Non-
controlling interests


Total equity

Balance as of June 30, 2018

927

(114)

7,148

7,961

304

8,265

Net profit for the period

-

-

212

212

10

222

Dividend

-

-

(100)

(100)

-

(100)

Other comprehensive income, after tax effect

-

23

-

23

-

23

Balance as at September 30, 2018

927

(91)

7,260

8,096

314

8,410




For the nine months ended September 30, 2019 (unaudited)



Share
capital and premium (1)


Accumulated
other
comprehensive income (loss)


Retained earnings (2)


Total
share-holders'
equity


Non-
controlling interests


Total equity

Balance as at December 31, 2018 (audited)

927

(159)

7,325

8,093

320

8,413

Cumulative effect of the initial implementation of US accepted accounting principals(3)

-

8

(8)

-

-

-

Adjusted balance as at January 1, 2019 after the initial implementation

927

(151)

7,317

8,093

320

8,413

Net profit for the period

-

-

643

643

29

672

Dividend

-

-

(300)

(300)

-

(300)

Other comprehensive income, after tax effect

-

25

-

25

-

25

Balance as at September 30, 2019

927

(126)

7,660

8,461

349

8,810




For the nine months ended September 30, 2018 (unaudited)



Share
capital and
premium (1)


Accumulated
other
comprehensive
income (loss)


Retained
earnings (2)


Total
share-
holders' equity


Non-
controlling interests


Total equity

Balance as at December 31, 2017 (audited)

927

(120)

6,949

7,756

290

8,046

Net profit for the period

-

-

568

568

25

593

Dividend

-

-

(255)

(255)

-

(255)

Other comprehensive income (loss), after tax effect

-

29

-

29

(1)

28

Temporary equity – non-controlling interest

-

-

(2)

(2)

-

(2)

Balance as at September 30, 2018

927

(91)

7,260

8,096

314

8,410

 

STATEMENT OF CHANGES IN EQUITY (CONT'D)

(NIS million)




For the year ended December 31, 2018 (audited)



Share
capital and
premium (1)


Accumulated
other
comprehensive
loss


Retained
earnings (2)


Total


Non-
controlling
interests


Total
equity

Balance as at December 31, 2017

927

(120)

6,949

7,756

290

8,046

Net profit for the year

-

-

733

733

34

767

Dividend

-

-

(355)

(355)

-

(355)

Other comprehensive loss, after tax effect

-

(39)

-

(39)

(4)

(43)

Temporary equity – non‑controlling interest

-

-

(2)

(2)

-

(2)

Balance as at December 31, 2018

927

(159)

7,325

8,093

320

8,413


(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.

(3)   Cumulative effect of the initial implementation regarding financial instruments of US accepted accounting standards at
banks in respect of financial instruments (ASU 2016-01).

 

Contact: 
Dafna Zucker 
First International Bank of Israel 
e-mail: zucker.d@fibi.co.il 
Tel: +972-3-519-6224 

Ehud Helft 
GK Investor & Public Relations 
e-mail: fibi@gkir.com 
Tel: +1-646-201-9246

Cision View original content:http://www.prnewswire.com/news-releases/first-international-bank-of-israel-presents-third-quarter-2019-results-300965309.html

SOURCE First International Bank of Israel


Source: First International Bank of Israel