Israel Discount Bank : First Quarter 2024 Additional Disclosure - Third Pillar Of Basel

Link to an accessible report

This report is a translation from the Hebrew and has been prepared for convenience only. In case of any discrepancy the Hebrew will prevail.

Updated as of: May 19, 2024

Table 2a - A description of the principal features of issued regulatory capital instruments

(2) Ordinary shares

issued by a subsidiary

of the banking

(3) Subordinated debt

(4) Subordinated debt

(5) Subordinate debt

(6) Subordinate debt

(1) Ordinary share

corporation to third

notes - Series "F" (tier 2

notes - Series "G" (tier

2 notes Series "H" (tier 2

notes Series "H" (tier 2

No.

Item

capital

party investors

capital) - Manpikim

capital) - Manpikim

Capital) - Manpikim

Capital) - Manpikim

1

The legal entity of the issuer

The Bank

ICC

Discount Manpikim

Discount Manpikim

Discount Manpikim

Discount Manpikim

Ltd.

Ltd.

Ltd.

Ltd.

2

Unique feature - Security No.

691212

-

748197

7480247

7480312

1191246

3

The legal framework/frameworks

The laws of the State

The laws of the State o

f

The laws of the State o

f

The laws of the State of

The laws of the State o

f

The laws of the State o

f

applying to the instrument

of Israel

Israel

Israel

Israel

Israel

Israel

4

The Tier to which the instrument

Not relevant

Not relevant

Not relevant

Not relevant

Not relevant

Not relevant

belongs during the transitional

p

eriod of Basel III and which is being

gradually cancelled

5

The Tier to which the instrument

Common equity tier

Common equity tier 1

Tier 2 capital

Tier 2 capital

Tier 2 capital

Tier 2 capital

b

elongs in accordance with the Base

l

1

III

instructions, regardless of the

transitional instructions

6

Is

the instrument qualified as a

The component is

The banking group

The banking group

The banking group

The banking group

The banking group

regulatory capital component on a

qualified as a

st

andalone basis, the banking group

regulatory capital

or on a standalone basis and the

component on a

banking group

banking group basis

7

Type of instrument

Ordinary share

Ordinary shares issued

Debt notes issued by a

Debt notes issued by a

Subordinate debt

Subordinate debt

capital

by a subsidiary of the

subsidiary company of

subsidiary company of

notes issued by a

notes issued by a

banking corporation to

the banking

the banking

subsidiary company of

subsidiary company of

2

Israel Discount Bank Limited and its Subsidiaries | Additional Regulatory Disclosures

(2) Ordinary shares

issued by a subsidiary

of the banking

(3) Subordinated debt

(4) Subordinated debt

(5) Subordinate debt

(6) Subordinate debt

(1) Ordinary share

corporation to third

notes - Series "F" (tier 2

notes - Series "G" (tier

2 notes Series "H" (tier 2

notes Series "H" (tier 2

No.

Item

capital

party investors

capital) - Manpikim

capital) - Manpikim

Capital) - Manpikim

Capital) - Manpikim

third party investors

corporation to

corporation to

the banking

the banking

investors being a third

investors being a third

corporation to

corporation to

party

party

investors being a third

investors being a third

party

party

5

77

The amount recognized as

6,248

433

1,331

1,550

577

834

re

gulatory capital (in NIS millions11 a

s

of

the most recent reporting date)

9

The par value of the instrument (in

123

Less than NIS 1 million

Approx. 1,331

Approx. 1,514

573.1

844.5

NIS millions)

(NIS 31)

10

Accounting classification

Shareholders' equity

Non-controlling

Liability - computed

Liability - computed

Liability - computed

Liability - computed

interests in a

on the basis of

on the basis of

on the basis of

on the basis of

consolidated

amortized cost

amortized cost

amortized cost

amortized cost

subsidiary

11

Original date of issue

The Bank was

Different dates

October 29, 2019

June 22, 2020

November 29, 2021

November 28, 2022

established in 1935.

January 7, 2020

April 22, 2021

June 15, 2023

Its shares have been

issued at different

dates since then.

12

Perpetual or dated

Perpetual

Perpetual

Dated

Dated

Dated

Dated

13

Original redemption date

No redemption date

No redemption date

One payment on

One payment on July 1,

One payment on

One payment on

October 29, 2030

2031

November 29, 2032

November 1, 2033

14

A

vailable for early redemption at the

No

No

Yes

Yes

Yes

Yes

option of the issuer, with a prior

a

pproval of the Supervisor of Banks

15

The earliest possible date of early

Redemption in full

Redemption in full

Redemption in full

Redemption in full

redemption at the option of the

may not be made

may not be made

may not be made

may not be made

issuer, date of exercise of an early

before October 29,

before July 1, 2026 and

before November 1,

before November 30,

3

					(2) Ordinary shares
					issued by a subsidiary
					of the banking	(3) Subordinated debt	(4) Subordinated debt		(5) Subordinate debt	(6) Subordinate debt
				(1) Ordinary share	corporation to third	notes - Series "F" (tier 2	notes - Series "G" (tier	2 notes Series "H" (tier 2	notes Series "H" (tier 2
No.		Item		capital	party investors	capital) - Manpikim	capital) - Manpikim		Capital) - Manpikim	Capital) - Manpikim
	re	demption option conditional upon				2025 and not later	not later than August		2027 and not later than	2028 and not later
	the occurrence of a certain event,				than November 29,	1, 2026.		December 1, 2027.	than December 30,
	and the amount of redemption				2025.				2028.
16	E	xistence and frequency of later earl	y			No	No		No	No
		redemption dates
	Interest/dividend coupons	-	-
17	Fixed or variable Interest/dividend		-	-	Fixed	Fixed		Fixed	Fixed
		coupons
18	T	he rate of the interest coupon and		-	-	Fixed annual interest	Fixed annual interest		Fixed annual interest	Fixed annual interest
	a	ny linkage terms to a certain index				of 1.46% for the first	of 2.42% for the first		of 0.2% for the first	of 3.17% for the first
						period. Following the	period. Following the		period. Following the	period. Following the
						end of six years, the	end of six years, the		end of about six years,	end of about six years,
						interest rate shall be	interest rate shall be		the interest rate shall	the interest rate shall
						increased or decreased	increased or decreased		be increased or	be increased or
						by the difference in	by the difference in		decreased by the	decreased by the
						respect of the base	respect of the base		difference in respect of	difference in respect of
						interest at date of	interest at date of		the base interest at	the base interest at
						change in the interest	change in the interest		date of change in the	date of change in the
						rate.	rate.		interest rate.	interest rate.
19	Any dividend stopper condition		-	-	No	No		No	No
		applying to ordinary shareholders
20		Subject to full discretion, partial		-	-	Is not subject to	Is not subject to	Is not subject to	Is not subject to
		discretion or free of discretion				discretion	discretion	discretion	discretion
21	E	xistence of interest step-up terms		-	-	No	No		No	No
	or other redemption incentives
22	The instrument is accruing or non-		-	-	Not relevant	Not relevant		Not relevant	Not relevant
		accruing as regards
		interest/dividend

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Israel Discount Bank Limited and its Subsidiaries | Additional Regulatory Disclosures

			(2) Ordinary shares
			issued by a subsidiary
			of the banking	(3) Subordinated debt	(4) Subordinated debt	(5) Subordinate debt	(6) Subordinate debt
		(1) Ordinary share	corporation to third	notes - Series "F" (tier 2	notes - Series "G" (tier	2 notes Series "H" (tier 2	notes Series "H" (tier 2
No.	Item	capital	party investors	capital) - Manpikim	capital) - Manpikim	Capital) - Manpikim	Capital) - Manpikim

23	T	he instrument is convertible or non	-	-	-	Non-convertible	Non-convertible	Non-convertible	Non-convertible
		convertible
24	If	convertible, what are the exercise		-	-	Not relevant	Not relevant	Not relevant	Not relevant
		point/points
25	If convertible, is it in full or in part	-	-	Not relevant	Not relevant	Not relevant	Not relevant
26	If	convertible, what is the conversion		-	-	Not relevant	Not relevant	Not relevant	Not relevant
	ratio
27	If	convertible, is conversion optional		-	-	Not relevant	Not relevant	Not relevant	Not relevant
	or mandatory
28	If	convertible, what would be the Tie	r	-	-	Not relevant	Not relevant	Not relevant	Not relevant
	of	the instrument received after
		conversion
29	If	convertible, state the issuer of the		-	-	Not relevant	Not relevant	Not relevant	Not relevant
	in	strument received after conversion
30	Does a feature exist requiring a		-	-	Yes	Yes	Yes	Yes
	write-down of the instrument
31	W	here a write-down feature exists,		-	-	The Supervisor's	The Supervisor's	The Supervisor's	The Supervisor's
	what are the exercise point/points				decision regarding a	decision regarding a	decision regarding a	decision regarding a
						trigger event of non-	trigger event of non-	trigger event of non-	trigger event of non-
						viability and/or of the	viability and/or of the	viability and/or of the	viability and/or of the
						common equity tier 1	common equity tier 1	common equity tier 1	common equity tier 1
						ratio having fallen	ratio having fallen	ratio having fallen	ratio having fallen
						below 5% (Appendix D	below 5% (Appendix D	below 5% (Appendix D	below 5% (Appendix D
						of Directive No.202)	of Directive No.202)	of Directive No.202)	of Directive No.202)
32	W	here a write-down feature exists, is	-	-	Full or partial	Full or partial	Full or partial	Full or partial
	it	in part or in full
33	W	here a write-down feature exists, is	-	-	Temporary	Temporary	Temporary	Temporary
									5

				(2) Ordinary shares
				issued by a subsidiary
				of the banking	(3) Subordinated debt	(4) Subordinated debt		(5) Subordinate debt	(6) Subordinate debt
			(1) Ordinary share	corporation to third	notes - Series "F" (tier 2	notes - Series "G" (tier	2 notes Series "H" (tier 2	notes Series "H" (tier 2
No.		Item	capital	party investors	capital) - Manpikim	capital) - Manpikim		Capital) - Manpikim	Capital) - Manpikim
	the write-down permanent or
		temporary
34		Where a temporary write-down	-	-	At the discretion of the	At the discretion of the		At the discretion of the	At the discretion of the
		feature exists, describe the			Bank and after the	Bank and after the		Bank and after the	Bank and after the
		mechanism of the write-up			Bank's common equity	Bank's common equity		Bank's common equity	Bank's common equity
					tier 1 ratio has risen	tier 1 ratio has risen		tier 1 ratio has risen	tier 1 ratio has risen
					above the minimum	above the minimum		above the minimum	above the minimum
					capital ratio prescribed	capital ratio prescribed		capital ratio prescribed	capital ratio prescribed
					by the Supervisor	by the Supervisor		by the Supervisor	by the Supervisor
35	P	osition in subordination hierarchy	Subordinate debt	Subordinate debt	Not relevant, unless	Not relevant, unless	Not relevant, unless	Not relevant, unless
	in	liquidation - Noting the	notes Series "F" to	notes Series "F" to "H"	the instrument is not	the instrument is not	the instrument is not	the instrument is not
	i	mmediate preceding instrument to	"H" (tier 2 Capital) -	(tier 2 Capital) -	written-off in	written-off in	written-off in	written-off in
	this instrument in the subordination	(columns 3 to 6).	(columns 3 to 6).	accordance with its	accordance with its	accordance with its	accordance with its
		hierarchy.			terms at the time of	terms at the time of	terms at the time of	terms at the time of
					liquidation - credit to	liquidation - credit to	liquidation - credit to	liquidation - credit to
					the public and bonds	the public and bonds	the public and bonds	the public and bonds
					issued by the Bank and	issued by the Bank	issued by the Bank and	issued by the Bank and
					Manpikim	and Manpikim	Manpikim	Manpikim
36	A	re there components matching the	No	No	No	No		No	No
		definition of regulatory capital due
	o	nly to non-compliant transitioned
		features
37	If	so, these components should be	-	-	Not relevant	Not relevant		Not relevant	Not relevant
	noted

6

Israel Discount Bank Limited and its Subsidiaries | Additional Regulatory Disclosures

Additional details - table 2b - descriptions of terms, conditions and additional relevant information

(1) Ordinary share capital

The Bank's ordinary share capital had been issued on different dates in the past. The Bank's ordinary share capital complies with criteria detailed in Appendix "A" of Directive 202, and as such is qualified to serve as tier 1 capital in accordance with the instructions of Basel III.

On March 30, 2022, the Bank completed a process of issuing shares to the public, comprising 72,994,300 shares of a par value of NIS 0.1 each, in total consideration for approx. NIS 1,428 million.

(2) Ordinary shares issued by a subsidiary of the banking corporation to third party investors

The ordinary share capital of Israel Credit Cards Ltd. ("ICC"), a consolidated subsidiary of the Bank, had been issued on different dates in the past. Had the ordinary share capital of ICC held by the First International Bank (minority interests) been issued by the Bank, it would have complied with all criteria detailed in Appendix "A" of Directive 202, and as such is qualified to serve as tier 1 capital in accordance with the instructions of Basel III, subject to the terms prescribed in the Directive.

For details regarding debt notes issued by Mercantile Discount Bank, see the Internet site of that bank.

7