Bank Leumi (TASE: LUMI) reported strong results for the first quarter of 2018, continuing the positive trend from 2017: a rise in revenue in core activities while cutting expenditure.
Net profit was NIS 730 million ($208 million) up 17.4% from the corresponding quarter of 2017. Profit represents a 9% return on equity. To a major extent the rise in profit stems from the lower level of tax paid compared with the corresponding quarter of 2017 - 26.4% compared with 38.5%. Leumi, led by CEO Rakefet Russak-Aminoach, will distribute NIS 292 million ($83 million) in dividends, worth 40% of the quarterly net profit and in addition, the bank will commence its share buyback plan.
Net Credit to the public increased by 2.5% compared with the corresponding period last year and by 1.3% compared with December 31, 2017 (up 5% in annual terms). The increase in credit is mainly from the middle-market and real estate sectors. Total expenses fell by NIS 52 million ($15 million) (down 2.5%), driven by lower salary expenses.
The efficiency ratio reached 64.0%, compared with 64.9% in the corresponding quarter last year. Credit loss expenses amounted to 0.19%, compared with 0.15% in the corresponding period last year while Core Capital Tier1 ratio reached 11.11%, compared with 11.02% in the corresponding period last year.
Published by Globes [online], Israel business news - www.globes-online.com - on May 24, 2018
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