Mizrahi Tefahot Bank : ​ Financial Reports (pdf 354 kb)

Condensed consolidated statement of profit and lossReported amounts (NIS in millions)

For the three months ended June 30,

2018

2017

(unaudited)Interest revenues Interest expenses

Interest revenues, net

Expenses with respect to credit losses Interest revenues, net after expenses with respect to credit losses

2,237 892 1,345 90 1,255

1,915 742 1,173 42 1,131

Non-interest revenuesNon-interest financing revenues Commissions

Other revenues

Total non-interest revenuesOperating and other expenses

129 363 12 504

Payroll and associated expenses 557 Maintenance and depreciation of

buildings and equipment 186

Other expenses 582

Total operating and other expenses Pre-tax profit

Provision for taxes on profit After-tax profit

1,325 434 212 222

Share in profits of associated companies, after tax effect

Net profit:

Before attribution to non-controlling interests

Attributable to non-controlling interests Attributable to shareholders of the Bank

1

223 (16) 207

(1)Comparative figures for previous periods were reclassified.

21 353 12 386

(1)556

181

(1)140

877 640 231 409

1

410 (10) 400

For the six months For the year ended ended June 30,

3,686 1,260 2,426 172 2,254

1,126

2,237 984 404 580

The accompanying notes are an integral part of the financial statements.

Chairman of the Board of Directors

Approval date:

Ramat Gan, August 30, 2018

President & CEO

Eldad Fresher

2018 (unaudited)

2017

3,271 6,222

1,071 1,875

2,200 4,347

91 192

2,109 4,155

December 31, 2017 (audited)

219 725 23 967

20 136

710 1,423

24 94

754 1,653

(1)1,043(1)2,271

375 736

367 742

(1)290(1)598

1,700 3,611

1,163 2,197

423 806

740 1,391

1

-

-581 (31) 550

740 1,391

(19) (44)

721 1,347

Condensed consolidated statement of profit and loss - ContinuedReported amounts (NIS in millions)

For the three months ended June 30,		For the six months ended June 30,		For the year ended December 31,
2018	2017	2018	2017	2017
(unaudited)		(unaudited)	(audited)

year ended December 31,2017

(audited)

Diluted earnings per share(1)(in NIS)

Basic earnings

Net profit attributable to shareholders of the Bank	0.89	1.72	2.36	3.10	5.80
Weighted average number of ordinary shares used to calculate basic earnings	232,949,495	232,314,822	232,876,790	232,254,896	232,357,974

5.80

232,357,974

Diluted earnings

Net profit attributable to shareholders of the Bank	0.88	1.71	2.35	3.08	5.76
Weighted average number of ordinaryshares used to calculate dilutedearnings	234,342,587	233,928,007	234,314,429	233,827,301	233,949,241

5.76

233,949,241

(1) Share of NIS 0.1 par value.

Condensed consolidated statement of comprehensive incomeReported amounts (NIS in millions)

For the three monthsended June 30,For the six months ended June 30

For the year ended

December 31,2018

2017 (unaudited)

2018

2017 (unaudited)

2017 (audited)

Net profit:

Before attribution to non-controlling interests

Attributable to non-controlling interests Net profit attributable to shareholders ofthe Bank

223 (16)

410 (10)

581 (31)

740 1,391

(19) (44)

207

400

550

721 1,347

Other comprehensive income (loss) before taxes

Adjustments for presentation of available-for-sale securities at fair value, net Adjustments from translation of financial statements of investments in associates(1)

(15)

33

(79)

45 22

Net loss from cash flow hedges Adjustment of liabilities with respect toemployees' benefits(2)

1 (4)

- 1

1 (5)

(1) (4)

- (8)

Total other comprehensive income (loss),before tax

Related tax effect

59 41 (15)

(113)

82

(92)

(132)(3)

(79)

(1)

(48)

(122)

26

-

14 44

Other comprehensive income (loss) after taxes

Other comprehensive income (loss), before attribution to non-controlling interests

26

(53)

(1)

(34) (78)

Less other comprehensive income (loss) attributed to non-controlling interests Other comprehensive income (loss)attributed to shareholders of the Bank, aftertaxes

-

12

(1)

12 12

26

(41)

(2)

(22) (66)

Comprehensive income:

Before attribution to non-controlling interests Attributable to non-controlling interestsComprehensive income attributable toshareholders of the Bank

249 (16)

233

357 2 359

580 (32)

706 1,313

(7) (32)

548

699 1,281

• (1) Adjustments from translation of financial statements of associated companies.

• (2) Includes adjustments with respect to actuarial estimates included in the reported period for defined-benefit pension plans and current amortization of adjustments with respect to liabilities to profit and loss.

• (3) Includes: The effect of update to the assumption of salary cost and update to the remuneration increase rate on the actuarialliability for employees' rights at the Bank, amounting to NIS 69 million, net of taxes, as well asthe effect of the streamlining plan at Bank Yahav on Bank shareholders' equity amounting to NIS 11 million.

The accompanying notes are an integral part of the financial statements.

Condensed consolidated balance sheetReported amounts (NIS in millions)

As of June 30,		As of December 31,
2018	2017	2017
(unaudited)		(audited)

Assets

Total assets

246,593

235,056

239,572

Total liabilities

231,933

221,163

225,245

Cash and deposits with banks	42,380	39,146	41,130
Securities(1)	9,926	10,560	10,133
Securities loaned or purchased in resale agreements	22	6	76
Loans to the public	188,589	178,593	182,602
Provision for credit losses	(1,534)	(1,460)	(1,484)
Loans to the public, net	187,055	177,133	181,118
Loans to Governments	604	312	456
Investments in associated companies	32	33	32
Buildings and equipment	1,364	1,391	1,403
Intangible assets and goodwill	87	87	87
Assets with respect to derivative instruments	3,453	4,384	3,421
Other assets	1,670	2,004	1,716
Liabilities and Equity
Deposits from the public	189,900	180,680	183,573
Deposits from banks	875	1,454	1,125
Deposits from the Government	47	57	51
Debentures and subordinated notes	30,034	27,851	29,923
Liabilities with respect to derivative instruments	3,364	4,093	3,082
Other liabilities(2)	7,713	7,028	7,491
Shareholders' equity attributable to shareholders of
the Bank	13,986	13,276	13,685
Non-controlling interests	674	617	642

Total equity	14,660	13,893	14,327
Total liabilities and equity	246,593	235,056	239,572

• (1) Of which: NIS 6,755 million at fair value on consolidated basis (June 30, 2017 - NIS 7,221 million; December 31, 2017 - NIS 6,768 million).

• (2) Of which: Provision for credit losses with respect to off balance sheet credit instruments amounting to NIS 97 million (on June 30, 2017 - NIS 93 million, on December 31, 2017 - NIS 90 million).

The accompanying notes are an integral part of the financial statements.

Condensed Statement of Changes in Shareholders' EquityReported amounts (NIS in millions)

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

Share capital and
premium(1)
Balance as of March 31, 2018	2,185
Net profit for the period	-
Dividends paid(3)	-
Benefit from share-based payment transactions	-
Related tax effect	-
Realization of share-based payment transactions(2)	6
Other comprehensive income (loss), net, after tax	-
Balance as of June 30, 2018	2,191
Balance as of March 31, 2017	2,246
Net profit for the period	-
Dividends paid	-
Benefit from share-based payment transactions	-
Related tax effect	-
Realization of share-based payment transactions(2)	3
Other comprehensive income (loss), net, after tax	-
Balance as of June 30, 2017	2,249

54-

capital and capital
reserves
60	-	2,245
-	-	-
-	-	-
-	-	-
-	-	-
(6)	-	-
-	-	-

2,245

For the three months ended June 30, 2017 (unaudited)

52	(76)	2,222
-	-	-
-	-	-
-	-	-
(1)	-	(1)
(3)	-	-
-	-	-
48	(76)

2,221

• (1) Share premium generated prior to March 31, 1986.

• (2) In the second quarter of 2018, 218,973 ordinary NIS 0.1 par value shares were issued (In the second quarter of 2017, 83,317 ordinary NIS 0.1 par value shares were issued) for exercise of options pursuant to the Employee Stock Option Plan. The Bank also issued 30,580 ordinary NIS

  0.1 par value shares to the Bank President & CEO.

• (3) On June 5, 2018, the Bank paid dividends amounting to NIS 137.2 million, in conformity with a decision by the Bank Board of Directors.

Cumulative other	Total
comprehensive	Retained	shareholder	Non-controlling
income (loss)	earnings	equity	interests	Total equity
(411)	12,056	13,890	658	14,548
-	207	207	16	223
-	(137)	(137)	-	(137)
-	-	-	-	-
-	-	-	-	-
-	-	-	-	-
26	-	26	-	26
(385)	12,126	13,986	674	14,660
(298)	11,091	13,015	619	13,634
-	400	400	10	410
-	(97)	(97)	-	(97)
-	-	-	-	-
-	-	(1)	-	(1)
-	-	-	-	-
(41)	-	(41)	(12)	(53)
(339)	11,394	13,276	617	13,893