FIRST INTERNATIONAL BANK OF ISRAEL LTD TEL AVIV, Israel, Nov. 15, 2017 /PRNewswire/ --
Third Quarter Highlights
-- Growth of 58.6% in net earnings to NIS 203 million;
-- Growth of 25% in pre-tax earnings to NIS 281 million;
-- Return on equity: 11.1%; and with the elimination of income from taxes
in respect of prior years - return on equity of 9.3%;
-- Year-over-year growth of 4.5% in earnings from financing activities;
-- Reduction of 3.3% in operating and other expenses, and improvement to
68.8% in the cost/income ratio;
-- Growth of 3.8% in credit to the public in the first nine months of the
year, mostly in the private customer segment (4.8%) and in the small
business segment (4.9%);
-- Ratio of Tier I equity capital to risk weighted assets: 10.32%;
-- Dividend of NIS 100 million to be issued for the quarter.
Management Comment
Mrs. Smadar Barber-Tsadik, CEO of the First International Bank Group (TASE: FTIN), "The good results for the quarter reflect the growth trend of the Group which is evident in both the growth in credit to the public and in deposits by the public. This along continued and consistently improving efficiencies, which are reflected across all expense items, while maintaining a high level of financial stability.
"The First International Bank emphasizes the promotion of digital services and innovation combined with professional service to customers. We recently introduced new innovations to both our website and mobile banking applications, introducing advise.me - an investment advisory service accessible on the mobile phone, comprising a breakthrough in the world of investment consultation, which caters its service specifically to customer requirements."
Profitability and Growth
Net earnings in the third quarter increased by 58.6% in comparison to the corresponding quarter last year and amounted to NIS 203 million. Return on equity reached 11.1%.
In the third quarter of the year, the Bank recognized income from prior years' taxes which amounted to NIS 32 million. The pre-tax earnings in the third quarter increased by approximately 25% and amounted to NIS 281 million. The return on equity, with the elimination of income from taxes in respect of prior years, in the amount of NIS 32 million, reached 9.3% for the quarter.
In the first nine months of the year net earnings grew by 27.1% in comparison to the corresponding period last year and amounted to NIS 520 million. Return on equity reached 9.4%. Pre-tax earnings amounted to NIS 774 million, a year-over-year increase of 13.7%. Net interest income increased by 6% in the first nine months of the year, in comparison to the corresponding period last year, and amounted to NIS 1,710 million. The increase stemmed from operations, mostly from the growth in the credit portfolio.
The growth of the Group is apparent from both the credit and the deposit side. The credit to the public portfolio grew by 3.8% in the first nine months of the year. The growth in the credit portfolio is characterized by the continuous distribution of the credit granted and is most noticeable in the private customer segment, which grew by 4.8%, in the small business segment, which grew by 4.9%, and in the middle market and large businesses segment, which grew by 1.1%.
Credit loss expenses in the third quarter of the year amounted to a rate of 0.04% of total credit to the public, and in the first nine months of the year to 0.16%. The total amount of doubtful debts decreased by 12.7% in relation to the level as of the end of 2016.
Efficiency
The First International Bank continues to improve efficiencies in accordance with its strategic outline and achieved a decrease of 3.3% (NIS 22 million) in total operating and other expenses for the quarter, in comparison to the corresponding quarter last year, and amounted to NIS 640 million. The reduction in expenses for the quarter is noted across all expense items, including payroll and related expenses, which decreased by 1.7%.
The gradual and consistent improvement in the efficiency ratio continued, and showed a third quarter improvement of the cost income ratio to 68.8%, in contrast to 69.6% in the second quarter of the current year.
Financial stability
The growth trend of the capital attributed to the shareholders of the Bank continued, growing by 5.3% in comparison to the end of 2016, and amounting to NIS 7,706 million. The Tier I equity capital ratio increased reaching 10.32%, as compared to 10.09% at December 31, 2016, and the comprehensive capital ratio increased to 13.94%
The Board of Directors of the Bank decided on a dividend distribution of NIS 100 million. This is in addition to dividend distributions totaling NIS 210 million since the beginning of the year.
Condensed principal financial information and principal execution indices
Principal For the nine months For the
financial ended year
ratios ended
---------- -------------------- --------
30.9.17 30.9.16 31.12.16
------- ------- --------
in %
---
Execution
indices
Return
on
equity(1) 9.4% 7.6% 7.2%
Return
on
assets(1) 0.5% 0.4% 0.4%
Ratio of
fees to
assets(1) 1.0% 1.0% 1.0%
Ratio of
equity
capital
tier 1 10.32% 10.05% 10.09%
Leverage
ratio 5.69% 5.66% 5.52%
Liquidity
coverage
ratio 122% 109% 123%
Efficiency
ratio 69.1% 73.5% 73.5%
Credit
quality
indices
Ratio of
provision
for
credit
losses
to
credit
to the
public 1.05% 1.10% 1.08%
Ratio of
impaired
debts
or in
arrears
of 90
days or
more to
credit
to the
public 0.98% 1.07% 1.02%
Ratio of
provision
for
credit
losses
to
total
impaired
credit
to the
public 150% 135% 147%
---------- --- --- ---
Principal For the nine months
data ended
from
the
statement
of
income
---------- --------------------
30.9.17 30.9.16 Change
------- ------- ------
NIS million %
----------- ---
Net
profit
attributed
to
shareholders
of
the
Bank 520 409 27.1%
Interest
Income,
net 1,710 1,613 6.0%
Expenses
from
credit
losses 96 46 108.7%
Total
non
Interest
income 1,104 1,132 (2.5%)
Of
which:
Fees 972 982 (1.0%)
Total
operating
and
other
expenses 1,944 2,018 (3.7%)
Of
which:
Salaries
and
related
expenses 1,218 1,243 (2.0%)
Primary
net
profit
per
share
of
NIS
0.05
par
value
(NIS) 5.18 4.08 27.0%
------- ---- ---- ----
Principal data
from the balance
sheet As of Change vs.
----------------- ----- ----------
30.9.17 30.9.16 31.12.16 30.9.16 31.12.16
------- ------- -------- ------- --------
NIS million %
----------- ---
Total assets 129,888 126,071 127,907 3.0% 1.5%
of which: Cash
and deposits with
banks 33,205 26,672 29,150 24.5% 13.9%
Securities 10,590 16,127 15,776 (34.3%) (32.9%)
Credit to the
public, net 80,236 78,079 77,328 2.8% 3.8%
Total liabilities 121,563 118,054 119,973 3.0% 1.3%
of which:
Deposits from
banks 782 789 755 (0.9%) 3.6%
Deposits from the
public 108,394 104,549 105,817 3.7% 2.4%
Bonds and
subordinated
capital notes 5,230 5,597 5,801 (6.6%) (9.8%)
Capital attributed
to the
shareholders of
the Bank 7,706 7,411 7,321 4.0% 5.3%
------------------ ----- ----- ----- --- ---
Additional data As of
--------------- -----
30.9.17 30.9.16 31.12.16
------- ------- --------
Share price (NIS
0.01) 6,599 4,790 5,650
Dividend per share
(NIS) 2.09 - 1.99
------------------ ---- --- ----
(1) Annualized.
CONSOLIDATED STATEMENT OF INCOME
(NIS million)
For the three months For the nine months For the year Ended
ended September 30 ended September 30 December 31
------------------ ------------------ -----------
NOTE 2017 2016 2017 2016 2016
---- ---- ---- ---- ---- ----
(unaudited) (unaudited) (unaudited) (unaudited) (audited)
---------- ---------- ---------- ---------- --------
Interest Income 2 615 682 2,008 1,899 2,526
Interest Expenses 2 50 129 298 286 357
----------------- --- --- --- --- ---
Interest Income, net 565 553 1,710 1,613 2,169
Expenses from credit
losses 6,12 9 21 96 46 80
-------------------- --- --- --- --- ---
Net Interest Income
after expenses from
credit losses 556 532 1,614 1,567 2,089
-------------------- --- --- ----- ----- -----
Non-Interest Income
Non Interest Financing
income 3 38 24 71 91 115
Fees 321 326 972 982 1,300
Other income 6 5 61 59 65
------------ --- --- --- --- ---
Total non-Interest
income 365 355 1,104 1,132 1,480
------------------ --- --- ----- ----- -----
Operating and other
expenses
Salaries and related
expenses 397 404 1,218 1,243 1,656
Maintenance and
depreciation of
premises and
equipment 94 104 287 309 409
Amortizations and
impairment of
intangible assets 24 31 69 93 116
Other expenses 125 123 370 373 502
-------------- --- --- --- --- ---
Total operating and
other expenses 640 662 1,944 2,018 2,683
------------------- --- --- ----- ----- -----
Profit before taxes 281 225 774 681 886
Provision for taxes on
profit 78 91 261 303 398
---------------------- --- --- --- --- ---
Profit after taxes 203 134 513 378 488
The bank's share in
profit of equity-
basis investee, after
taxes 12 3 38 62 72
---------------------- --- --- --- --- ---
Net profit:
Before attribution to
noncontrolling
interests 215 137 551 440 560
Attributed to
noncontrolling
interests (12) (9) (31) (31) (39)
--------------- --- --- --- --- ---
Attributed to
shareholders of the
Bank 203 128 520 409 521
NIS
---
Primary profit per
share attributed to
the shareholders of
the Bank
Net profit per share
of NIS 0.05 par value 2.01 1.27 5.18 4.08 5.19
---------------------- ---- ---- ---- ---- ----
The notes to the financial statements are an integral part thereof.
STATEMENT OF COMPREHENSIVE INCOME((1))
(NIS million)
For the three months For the nine months For the year Ended
ended September 30 ended September 30 December 31
------------------ ------------------
2017 2016 2017 2016 2016
(unaudited) (unaudited) (unaudited) (unaudited) (audited)
Net profit before
attribution to
noncontrolling
interests 215 137 551 440 560
Net profit attributed
to noncontrolling
interests (12) (9) (31) (31) (39)
--------------------- --- --- --- --- ---
Net profit attributed
to the shareholders
of the Bank 203 128 520 409 521
Other comprehensive
income (loss) before
taxes:
Adjustments of
available for sale
securities to fair
value, net 18 4 83 40 14
Adjustments from
translation of
financial
statements(1) net
after the effect of
hedges(2) - (1) - (1) (3)
Adjustments of
liabilities in
respect of employee
benefits(3) (9) (93) 25 (158) (131)
-------------------- --- --- --- ---- ----
Other comprehensive
income (loss) before
taxes 9 (90) 108 (119) (120)
Related tax effect (3) 31 (38) 40 38
------------------ --- --- --- --- ---
Other comprehensive
income (loss) before
attribution to
noncontrolling
interests, after
taxes 6 (59) 70 (79) (82)
Less other
comprehensive
(income) loss
attributed to
noncontrolling
interests - 11 (3) 10 10
--------------- --- --- --- --- ---
Other comprehensive
income (loss)
attributed to the
shareholders of the
Bank, after taxes 6 (48) 67 (69) (72)
-------------------- --- --- --- --- ---
Comprehensive income
before attribution to
noncontrolling
interests 221 78 621 361 478
Comprehensive income
attributed to
noncontrolling
interests (12) 2 (34) (21) (29)
-------------------- --- --- --- --- ---
Comprehensive income
attributed to the
shareholders of the
Bank 209 80 587 340 449
-------------------- --- --- --- --- ---
(1) See note 4.
(2) Adjustments from translation of financial statements of foreign operation which its currency of operation is different from the currency of operation of the Bank.
(3) Hedges-gains (losses) regarding the hedging of investment in foreign currency.
(4) 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.
The notes to the financial statements are an integral part thereof.
CONSOLIDATED BALANCE SHEET
(NIS million)
30.9.17 30.9.16 31.12.16
------- ------- --------
NOTE (unaudited) (unaudited) (audited)
---- ---------- ---------- --------
Assets
Cash and deposits with
banks 33,205 26,672 29,150
Securities 5 10,590 16,127 15,776
Securities which were
borrowed 895 505 414
Credit to the public 6,12 81,091 78,944 78,175
Provision for Credit
losses 6,12 (855) (865) (847)
-------------------- ---- ---- ----
Credit to the public, net 80,236 78,079 77,328
Credit to the government 652 653 654
Investments in investee
company 549 505 514
Premises and equipment 1,097 1,144 1,133
Intangible assets 226 223 243
Assets in respect of
derivative instruments 10 1,203 1,139 1,332
Other assets(2) 1,235 980 1,020
Assets held for sale - 44 343
Total assets 129,888 126,071 127,907
------------ ------- ------- -------
Liabilities, temporary
equity and Shareholders'
Equity
Deposits from the public 7 108,394 104,549 105,817
Deposits from banks 782 789 755
Deposits from the
Government 846 515 570
Bonds and subordinated
capital notes 5,230 5,597 5,801
Liabilities in respect of
derivative instruments 10 1,160 1,300 1,356
Other liabilities(1)(3) 5,151 5,304 4,929
Liabilities held for sale - - 745
Total liabilities 121,563 118,054 119,973
----------------- ------- ------- -------
Temporary equity -
noncontroling interests 336 329 330
------------------------ --- --- ---
Capital attributed to the
shareholders of the Bank 7,706 7,411 7,321
Noncontrolling interests 283 277 283
------------------------ --- --- ---
Total equity 7,989 7,688 7,604
------------ ----- ----- -----
Total liabilities,
temporary equity and
shareholders' equity 129,888 126,071 127,907
--------------------- ------- ------- -------
(1) Of which: provision for credit losses in respect of off-balance sheet credit instruments in the amount of NIS 64 million and NIS 72 million and NIS 71 million at 30.9.17, 30.9.16 and 31.12.16, respectively.
(2) Of which: other assets measured at fair value in the amount of NIS 319 million and NIS 260 million and NIS 238 million at 30.9.17, 30.9.16 and 31.12.16, respectively.
(3) Of which: other liabilities measured at fair value in the amount of NIS 607 million and NIS 569 million and NIS 491 million at 30.9.17, 30.9.16 and 31.12.16, respectively.
The notes to the financial statements are an integral part thereof.
STATEMENT OF CHANGES IN EQUITY
(NIS million)
For the three months ended September 30, 2017 (unaudited)
--------------------------------------------------------
Share capital and Accumulated other comprehensive income Retained earnings (2) Total share-holders'
premium(1) (loss) equity Non- controlling interests Total equity
------------------ -------------------------------------- -------------------- --------------------- -------------------------- ------------
Balance as of June 30,
2017 927 (116) 6,752 7,563 276 7,839
Net profit for the
period - - 203 203 7 210
Dividend - - (70) (70) - (70)
Other comprehensive
income, after tax
effect - 6 - 6 - 6
Temporary equity -
noncontrolling
interests. - - 4 4 - 4
------------------ --- --- --- --- --- ---
Balance as of
September 30, 2017 927 (110) 6,889 7,706 283 7,989
------------------- --- ---- ----- ----- --- -----
For the three months ended September 30, 2016 (unaudited)
--------------------------------------------------------
Share capital and Accumulated other comprehensive loss Retained earnings (2) Total share-holders'
premium(1) equity Non- controlling interests Total equity
------------------ ------------------------------------ -------------------- --------------------- -------------------------- ------------
Balance as of June 30,
2016 927 (126) 6,538 7,339 275 7,614
Net profit for the
period - - 128 128 4 132
Other comprehensive
income (loss), after
tax effect - (48) - (48) (2) (50)
Temporary equity -
noncontrolling
interests. - - (8) (8) - (8)
------------------ --- --- --- --- --- ---
Balance as of
September 30, 2016 927 (174) 6,658 7,411 277 7,688
------------------- --- ---- ----- ----- --- -----
For the nine months ended September 30, 2017 (unaudited)
-------------------------------------------------------
Share capital and Accumulated other comprehensive income Retained earnings (2) Total share-holders'
premium(1) (loss) equity Non- controlling interests Total equity
------------------ -------------------------------------- -------------------- --------------------- -------------------------- ------------
Balance at the
beginning of the year
(audited) 927 (177) 6,571 7,321 283 7,604
Net profit for the
period - - 520 520 19 539
Dividend - - (210) (210) (20) (230)
Other comprehensive
income, after tax
effect - 67 - 67 1 68
Temporary equity -
noncontrolling
interests. - - 8 8 - 8
------------------ --- --- --- --- --- ---
Balance as of
September 30, 2017 927 (110) 6,889 7,706 283 7,989
------------------- --- ---- ----- ----- --- -----
For the nine months ended September 30, 2016 (unaudited)
-------------------------------------------------------
Share capital and Accumulated other comprehensive loss Retained earnings (2) Total share-holders'
premium(1) equity Non- controlling interests Total equity
------------------ ------------------------------------ -------------------- --------------------- -------------------------- ------------
Balance at the
beginning of the year
(audited) 927 (105) 6,251 7,073 264 7,337
Net profit for the
period - - 409 409 14 423
Other comprehensive
income (loss), after
tax effect - (69) - (69) (1) (70)
Temporary equity -
noncontrolling
interests. - - (2) (2) - (2)
------------------ --- --- --- --- --- ---
Balance as of
September 30, 2016 927 (174) 6,658 7,411 277 7,688
------------------- --- ---- ----- ----- --- -----
STATEMENT OF CHANGES IN EQUITY (CONT'D)
(NIS million)
For the year ended December 31, 2016 (audited)
---------------------------------------------
Share capital and Accumulated other comprehensive loss Retained earnings (2) Total share-holders'
premium(1) equity Non- controlling interests Total equity
------------------ ------------------------------------ -------------------- --------------------- -------------------------- ------------
Balance at the
beginning of the year 927 (105) 6,251 7,073 264 7,337
Net profit for the
year - - 521 521 21 542
Dividend - - (200) (200) - (200)
Other comprehensive
loss, after tax
effect - (72) - (72) (2) (74)
Temporary equity -
noncontrolling
interests. - - (1) (1) - (1)
Balance as of December
31, 2016 927 (177) 6,571 7,321 283 7,604
---------------------- --- ---- ----- ----- --- -----
(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.
The notes to the financial statements are an integral part thereof.
Contacts:
Dafna Zucker,
Spokeswoman and IR Officer
Tel: +972-3-5196224
Tel: +972-3-5196219
Email: zucker.d@fibi.co.il
Investor Relations Contact:
Ehud Helft/Gavriel Frohwein
Tel: +1-646-688-3559
Email: firstinternationalbank@gkir.com
View original content:http://www.prnewswire.com/news-releases/first-international-bank-group-presents-results-for-the-third-quarter-2017-300556430.html
SOURCE FIBI-First International Bank of Israel Ltd.
