Israel Discount Bank Announces Q2/2012 Financial Results
TEL-AVIV, Israel, August 30, 2012 /PRNewswire/ --
Q2 Net Income - NIS 165 million compared to NIS 229 million in Q2/2011, a decrease of 27.9%.
Excluding the provision for impairment of the Bank's investment in the shares of the First International Bank, Net income in Q2/2012 amounted to NIS 238 million, an increase of 3.9% compared to Q2/2011.
Q2 Net Return on Equity attributable to the Bank's Shareholders - 6.1% compared to 9.3% in Q2/2011.
Excluding the provision for impairment of the Bank's investment in the shares of the First International Bank, the Net Return on Equity in Q2/2012 would have reached 8.9% on an annual basis.
H1/2012 Net Income - NIS 412 million compared to NIS 507 million in H1/2011, a decrease of 18.7%.
Excluding the provision for impairment of the Bank's investment in the shares of the First International Bank, the Net Income in H1/2012 would have amounted to NIS 485 million, a decrease of 4.3%
H1 Net Return on Equity attributable to the Bank's Shareholders - 7.7% compared to 10.2% in H1/2011, and compared to 8.2% for the whole of 2011.
Excluding the provision for impairment of the Bank's investment in the shares of the First International Bank, the Net Return on Equity in H1/2012 would have reached 9.1%.
Ratio of Capital to Risk Assets- 14.1%, Core Capital Ratio - 8.25%
Israel Discount Bank Limited (TASE:DSCT), one of Israel's leading banks, today reported its Q2/2012 financial results.
(Logo: http://photos.prnewswire.com/prnh/20120820/554838 )
The Discount Group's Net Income in H1/2012 totaled NIS 412 million, compared to NIS 507 million in H1/2011, a decrease of 18.7%.
The Return on Equity attributable to the Bank's shareholders in H1/2012 was 7.7% on an annul basis, compared to 10.2% in H1/2011.
Main factors affecting the Group's business results in Q2/2012, compared to Q1/2012:
- A provision of NIS 73 million, net, for impairment of the investment in the First International Bank.
- An increase of NIS 55 million in net interest income (5%).
- A decrease of NIS 5 million in expenses for credit losses (4.1%).
- A decrease in non-interest income, affected mainly by fair value adjustments of derivatives.
- An increase of 2.4% in commissions.
- A decrease of NIS 45 million in operating and other expenses (3.0%).
Main factors affecting the Group's business results in H1/2012, compared to H1/2011:
- A provision of NIS 73 million, net, for impairment of the investment in the First International Bank.
- A decrease of NIS 107 million in net interest income (4.5%).
- A decrease of NIS 59 million in expenses for credit losses (19.7%).
- A decrease of NIS 9 million in non-interest income (0.6%).
- An increase of NIS 48 million in operating and other expenses (1.7%).
- A provision for taxes of NIS 222 million in H1/2012, compared to NIS 298 million in H1/2011.
- A decrease of NIS 77 million in the Bank's share in the operating income of affiliated companies, net of tax. This decrease was caused, inter alia, by a provision for impairment and as aforesaid.
Main Balance Sheet Developments as at June 30, 2012:
- Total Assets decreased by 0.9%, amounting to NIS 200.6 billion, compared to NIS 202.5 billion at the end of 2011.
- Net Credit granted to the public increased by 2.6%, amounting to NIS 119.4 billion, compared to NIS 116.4 billion at the end of 2011.
- Securities increased by 6.0%, amounting to NIS 45.5 billion, compared to NIS 42.9 billion at the end of 2011.
- Deposits from the public decreased by 1.6%, amounting to NIS 150.9 billion, compared to NIS 153.4 billion at the end of 2011.
- The Equity attributable to the Bank's shareholders increased by 5.7%, amounting to NIS 11.3 billion, compared to NIS 10.7 billion at the end of 2011.
- Total Equity increased by 5.6%, amounting to NIS 11.6 billion, compared to NIS 11.0 billion at the end of 2011.
Data Regarding Subsidiaries
H1 2012
Return on
Equity
Attributable Capital
Net to Adequacy
income Shareholders Ratio
Discount Bancorp Inc. USD 22 M 5.5% *15.5%
Mercantile Discount Bank NIS 84 M 9.8% 14.2%
Discount Mortgage Bank NIS 29.4 M 6.9% 13.3%
Israel Credit Cards (ICC) (the Bank holds
71.8% of the equity) NIS 108 M 19.6% 17.0%
* In conformity with U.S. Reporting Standards
H1 2011
Return on
Equity
Attributable Capital
Net to Adequacy
Income Shareholders Ratio
Discount Bancorp Inc. USD 28 M 7.3% *16.2%
Mercantile Discount Bank NIS 106 M 13.3% 13.1%
Discount Mortgage Bank NIS 20.3 M 3.7% 16.9%
Israel Credit Cards (ICC) (the Bank holds
71.8% of the equity) NIS 120 M 22.6% 15.6%
* In conformity with U.S. Reporting Standards
2011
Return on
Equity
Attributable Capital
Net to Adequacy
Income Shareholders Ratio
Discount Bancorp Inc. USD 46 M 5.9% *16.5%
Mercantile Discount Bank NIS 162 M 9.6% 13.2%
Discount Mortgage Bank NIS 45.3 M 4.0% 13.9%
Israel Credit Cards (ICC) (the Bank holds
71.8% of the equity) NIS 230 M 20.6% 16.7%
* In conformity with U.S. Reporting Standards
Discount Group - Principal Data from the CONSOLIDATED
Financial Statements
Income and Profitability (in NIS millions)
Second Quarter Half Year Annual
2012 2011 % change 2012 2011 % change 2011
Net interest income 1,153 1,225 (5.9) 2,251 2,358 (4.5) 4,617
Expenses for credit
losses 118 188 (37.2) 241 300 (19.7) 778
Total non-interest income 742 750 (1.1) 1,607 1,616 (0.6) 2,930
Total operating and other
expenses 1,451 1,440 0.8 2,947 2,899 1.7 5,838
Operating income after
taxes 219 220 (0.5) 448 477 (6.1) 817
Net income attributable
to the Bank's
shareholders 165 229 (27.9) 412 507 (18.7) 848
Net return on equity
attributable to the
Bank's shareholders in % 6.1 9.3 7.7 10.2
Development of Assets and Liabilities (in NIS millions)
June 30 December 31
2012 2011 % change 2011 % change
Total Assets 200,641 186,001 7.9 202,471 (0.9)
Net Credit granted to the
public 119,412 117,289 1.8 116,383 2.6
Securities 45,455 33,102 37.3 42,898 6.0
Deposits from the public 150,862 139,296 8.3 153,368 (1.6)
Equity attributable to the
Bank's shareholders 11,306 10,333 9.4 10,701 5.7
Total Equity 11,632 10,652 9.2 11,020 5.6
Principal Financial Ratios (in percentages)
June 30 December 31
2012 2011 2011
Total Equity to Total Assets 5.8 5.7 5.4
Ratio of capital to risk assets 14.1 13.3 14.1
Core Capital ratio 8.3 7.6 8.1
Expenses for credit losses to credit
granted to the public 0.41 0.50 0.65
Net Credit granted to the public, to
total assets 59.5 63.1 57.5
Net Credit granted to the public, to
deposits from the public 79.2 84.2 75.9
Deposits from the public to total assets 75.2 74.9 75.7
Total Non-Interest Income to Operating
Expenses 54.5 55.7 50.2
Operating Expenses to Total Income 76.4 72.9 77.4
Adjusted Return on Risk Assets 8.3 9.9 8.1
Israel Discount Bank
Israel Discount Bank is a leading financial group in Israel. With nationwide coverage, Israel Discount Bank provides a full spectrum of corporate and retail financial products and services to its clients, both in Israel and key financial centers around the world. Israel Discount Bank is traded on the Tel-Aviv Stock Exchange under the ticker DSCT.
Israel Discount Bank Ltd.
Head Office:
Discount Tower
23 Yehuda Halevi Street, Tel Aviv, Israel
Tel: +972-3-5145555
Website: http://www.discountbank.co.il
For additional details please contact:
SaritWeiss
Spokesperson
Tel: +972-3-5145516
Mobile: +972-52-2-461151
E-mail: spokes@discountbank.net
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