The First International Bank of Israel Reports Financial Results for the Year 2023
Financial Highlights
- Net income of NIS 2,172 million in the year 2023; Return on equity 19.7%
- Net income of NIS 499 million in the fourth quarter of 2023; Return on equity - 17%
- Credit to the public grew by 1.8% in the year 2023
- Deposits from the public grew by 13.6% in 2023
- The customers' assets portfolio grew by 20% to
NIS 672 billion - Tier-1 shareholders' equity ratio of 11.35% and a liquidity coverage ratio of 156%
- The Bank's Board of Directors decided to distribute a dividend of NIS 269 million
Financial Results for the fourth quarter and full year 2023
The
In the fourth quarter of the year, the net income amounted to
Total revenue amounted to
Provision for credit losses amounted to
High quality credit portfolio – the bank has a low ratio of non-performing loans. This ratio indicates the quality of the credit portfolio (measuring the balance of debts that are non-accrual or which are in arrears of 90 days or out of the credit to the public), and it remained at low levels and stood at 0.6%. In addition, over the past year, the Bank increased the overall coverage ratio (defined as the ratio of the overall allowance for credit losses to the Bank's total amount of credit to the public) from a rate of 1.12% to a rate of 1.5%.
Operating and other expenses amounted to
In 2023, the efficiency ratio improved to 43.5%, by comparison with 50.9% in 2022. The bank continued to invest in efficiency programs, which include, among others, streamlining work processes, integrating automation into processes and implementing technological innovation.
Credit to the public increased by a rate of 1.8% by comparison with the same period in 2022 and amounted to
Deposits from the public have grown at a rate of 13.6% over the past year and amount to
The total customer assets portfolio increased by 20% in the past year and amounts to
Equity attributed to the Bank's shareholders increased to
The tier 1 capital ratio increased to 11.35%, in comparison with 10.42% at the end of 2022.
The liquidity coverage ratio increased to 156%, in comparison with 127% at the end of 2022.
Considering the directives of the Supervisor of Banks in
Looking ahead, the Bank's Board of Directors will continue to evaluate the Bank's dividend distribution policy, in response to developments and their impact on both the economy and on the Bank.
CONDENSED PRINCIPAL FINANCIAL INFORMATION AND PRINCIPAL EXECUTION INDICES |
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Principal financial ratios |
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2023 |
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2022 |
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2021 |
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2020 |
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2019 |
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percent |
Execution indices |
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Return on equity attributed to shareholders of the Bank |
19.7 |
16.6 |
14.7 |
8.6 |
10.5 |
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Return on average assets |
1.0 |
0.89 |
0.82 |
0.49 |
0.63 |
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Ratio of equity capital tier 1 |
11.35 |
10.42 |
11.46 |
11.18 |
10.81 |
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Leverage ratio |
5.26 |
5.19 |
5.34 |
5.29 |
5.81 |
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Liquidity coverage ratio (1) |
156 |
127 |
128 |
150 |
128 |
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Net stable funding ratio (2) |
146 |
133 |
139 |
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Ratio of total income to average assets |
3.2 |
2.9 |
2.6 |
2.7 |
3.0 |
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Ratio of interest income, net to average assets |
2.4 |
2.0 |
1.6 |
1.7 |
1.9 |
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Ratio of fees to average assets |
0.7 |
0.8 |
0.8 |
0.9 |
0.9 |
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Efficiency ratio |
43.5 |
50.9 |
58.3 |
61.8 |
64.4 |
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Credit quality indices |
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Ratio of provision for credit losses to credit to the public |
1.36 |
1.02 |
1.05 |
1.38 |
1.05 |
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Ratio of total provision for credit losses (3) to credit to the public |
1.50 |
1.12 |
1.13 |
1.48 |
1.11 |
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Ratio of non-accruing debts or in arrears of 90 days or more to credit to the public |
0.60 |
0.48 |
*0.63 |
0.86 |
1.08 |
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Ratio of provision for credit losses to total non-accruing credit to the public |
234.5 |
219.7 |
*244.0 |
221.3 |
131.2 |
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Ratio of net write-offs to average total credit to the public |
0.03 |
0.03 |
(0.01) |
0.10 |
0.10 |
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Ratio of expenses (income) for credit losses to average total credit to the public |
0.42 |
0.11 |
(0.23) |
0.52 |
0.16 |
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Principal data from the statement of income |
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2023 |
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2022 |
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2021 |
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2020 |
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2019 |
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NIS million |
Net profit attributed to shareholders of the Bank |
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2,172 |
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1,667 |
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1,405 |
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750 |
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865 |
Interest Income, net |
4,966 |
3,803 |
2,794 |
2,637 |
2,602 |
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Expenses (income) from credit losses |
502 |
123 |
(216) |
464 |
138 |
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Total non-interest income |
1,652 |
1,611 |
1,756 |
1,523 |
1,520 |
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Of which: Fees |
1,502 |
1,489 |
1,444 |
1,371 |
1,286 |
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Total operating and other expenses |
2,877 |
2,755 |
2,652 |
2,569 |
2,654 |
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Of which: Salaries and related expenses |
1,746 |
1,680 |
1,601 |
1,532 |
1,601 |
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Primary net profit per share of |
21.65 |
16.62 |
14.00 |
7.48 |
8.62 |
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Additional data |
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2023 |
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2022 |
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2021 |
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2020 |
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2019 |
Share price ( |
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14,990 |
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13,900 |
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12,950 |
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8,514 |
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9,989 |
Dividend per share ( |
795 |
942 |
543 |
125 |
410 |
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Average number of positions (3) |
3,634 |
3,676 |
3,715 |
3,895 |
4,086 |
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** Restated in respect of the new disclosure format on non-accruing debts instead of impaired debts, since (1) The ratio is computed in respect of the three months ended at the end of the reporting period.
(2) According to instructions of the (3) Including provision in respect of off-balance sheet credit instruments. (4) The number of positions includes conversion of overtime in terms of positions.
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STATEMENT OF INCOME FOR THE YEAR ENDED (NIS million) |
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Consolidated |
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The Bank |
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2023 |
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2022 |
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2021 |
2023 |
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2022 |
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2021 |
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Interest Income |
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9,850 |
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5,161 |
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3,150 |
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9,317 |
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4,833 |
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2,907 |
Interest Expenses |
4,884 |
1,358 |
356 |
4,801 |
1,339 |
358 |
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Interest Income, net |
4,966 |
3,803 |
2,794 |
4,516 |
3,494 |
2,549 |
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Expenses (income) from credit losses |
502 |
123 |
(216) |
484 |
118 |
(213) |
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Net Interest Income after expenses from credit losses |
4,464 |
3,680 |
3,010 |
4,032 |
3,376 |
2,762 |
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Non-Interest Income |
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Non-Interest Financing income |
142 |
113 |
303 |
161 |
111 |
301 |
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Fees |
1,502 |
1,489 |
1,444 |
1,348 |
1,331 |
1,285 |
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Other income |
8 |
9 |
9 |
62 |
66 |
49 |
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Total non-Interest income |
1,652 |
1,611 |
1,756 |
1,571 |
1,508 |
1,635 |
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Operating and other expenses |
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Salaries and related expenses |
1,746 |
1,680 |
1,601 |
1,626 |
1,564 |
1,491 |
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Maintenance and depreciation of premises and equipment |
341 |
332 |
340 |
315 |
306 |
313 |
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Amortizations and impairment of intangible assets |
122 |
113 |
105 |
120 |
111 |
103 |
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Other expenses |
668 |
630 |
606 |
642 |
604 |
584 |
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Total operating and other expenses |
2,877 |
2,755 |
2,652 |
2,703 |
2,585 |
2,491 |
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Profit before taxes |
3,239 |
2,536 |
2,114 |
2,900 |
2,299 |
1,906 |
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Provision for taxes on profit |
1,090 |
884 |
728 |
973 |
801 |
656 |
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Profit after taxes |
2,149 |
1,652 |
1,386 |
1,927 |
1,498 |
1,250 |
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The bank's share in profit of equity-basis investee, after taxes |
113 |
74 |
69 |
245 |
169 |
155 |
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Net profit: |
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Before attribution to non-controlling interests |
2,262 |
1,726 |
1,455 |
2,172 |
1,667 |
1,405 |
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Attributed to non-controlling interests |
(90) |
(59) |
(50) |
- |
- |
- |
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Attributed to shareholders of the Bank |
2,172 |
1,667 |
1,405 |
2,172 |
1,667 |
1,405 |
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Consolidated and The Bank |
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2023 |
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2022 |
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2021 |
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Primary profit per share attributed to the shareholders of the Bank |
NIS |
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Net profit per share of |
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21.65 |
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16.62 |
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14.00 |
STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED (NIS million) |
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Consolidated |
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2023 |
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2022 |
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2021 |
Net profit before attribution to non-controlling interests |
2,262 |
1,726 |
1,455 |
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Net profit attributed to non-controlling interests |
(90) |
(59) |
(50) |
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Net profit attributed to the shareholders of the Bank |
2,172 |
1,667 |
1,405 |
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Other comprehensive income (loss) before taxes: |
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Adjustments of available for sale bonds to fair value, net |
213 |
(441) |
27 |
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Adjustments of liabilities in respect of employee benefits(1) |
25 |
235 |
(24) |
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Other comprehensive income (loss) before taxes |
238 |
(206) |
3 |
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Related tax effect |
(81) |
71 |
(1) |
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Other comprehensive income (loss) before attribution to non-controlling interests, after taxes |
157 |
(135) |
2 |
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Less other comprehensive income (loss) attributed to non-controlling interests |
9 |
(13) |
- |
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Other comprehensive income (loss) attributed to the shareholders of the Bank, after taxes |
148 |
(122) |
2 |
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Comprehensive income before attribution to non-controlling interests |
2,419 |
1,591 |
1,457 |
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Comprehensive income attributed to non-controlling interests |
(99) |
(46) |
(50) |
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Comprehensive income attributed to the shareholders of the Bank |
2,320 |
1,545 |
1,407 |
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(1) 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. |
BALANCE SHEET AS AT (NIS million) |
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Consolidated |
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The Bank |
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2023 |
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2022 |
2023 |
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2022 |
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Assets |
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Cash and deposits with banks |
68,866 |
57,130 |
67,472 |
56,403 |
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Securities |
26,985 |
16,010 |
25,940 |
15,215 |
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Securities which were borrowed |
57 |
12 |
57 |
12 |
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Credit to the public |
119,240 |
117,156 |
113,118 |
111,019 |
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Provision for Credit losses |
(1,618) |
(1,195) |
(1,520) |
(1,115) |
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Credit to the public, net |
117,622 |
115,961 |
111,598 |
109,904 |
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Cred it to the g overnment |
1,055 |
866 |
369 |
158 |
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Investment in equity-basis investees |
786 |
687 |
1,642 |
1,403 |
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Premises and equipment |
877 |
902 |
855 |
879 |
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Intangible assets |
328 |
317 |
324 |
311 |
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Assets in respect of derivative instruments |
3,651 |
2,825 |
3,651 |
2,825 |
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Other assets (2) |
1,366 |
1,245 |
1,293 |
1,166 |
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Total assets |
221,593 |
195,955 |
213,201 |
188,276 |
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Liabilities and Shareholders' Equity |
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Deposits from the public |
191,125 |
168,269 |
184,082 |
161,540 |
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Deposits from banks |
4,314 |
4,821 |
6,344 |
7,223 |
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Deposits from the Government |
750 |
237 |
750 |
237 |
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Bonds and subordinated capital notes |
4,767 |
4,749 |
2,442 |
2,365 |
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Liabilities in respect of derivative instruments |
3,784 |
2,322 |
3,790 |
2,332 |
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Other liabilities (1)(3) |
4,207 |
4,522 |
3,722 |
4,020 |
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Total liabilities |
208,947 |
184,920 |
201,130 |
177,717 |
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Capital attributed to the shareholders of the Bank |
12,071 |
10,559 |
12,071 |
10,559 |
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Non-controlling interests |
575 |
476 |
- |
- |
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Total equity |
12,646 |
11,035 |
12,071 |
10,559 |
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Total liabilities and shareholders' equity |
221,593 |
195,955 |
213,201 |
188,276 |
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(1) Of which: provisions for credit losses in respect of off-balance sheet credit instruments in the amount of
(2) Of which: other assets measured at fair value in the amount of
(3) Of which: other liabilities measured at fair value in the amount of
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STATEMENT OF CHANGES IN EQUITY (NIS million) |
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Share capital and premium (1) |
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Accumulated |
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Retained earnings(2) |
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Total share-holders' equity |
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Non- controlling interests |
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Total equity |
Balance as at |
|
927 |
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(183) |
|
8,397 |
|
9,141 |
|
394 |
|
9,535 |
Changes during 2021 - |
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Net profit for the year |
- |
- |
1,405 |
1,405 |
50 |
1,455 |
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Dividend |
- |
- |
(545) |
(545) |
(10) |
(555) |
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Other comprehensive income, after tax effect |
- |
2 |
- |
2 |
- |
2 |
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Balance as at |
927 |
(181) |
9,257 |
10,003 |
434 |
10,437 |
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Adjustment of the opening balance, net of tax, due to the effect of initial implementation* |
- |
- |
(44) |
(44) |
(4) |
(48) |
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Balance as at |
927 |
(181) |
9,213 |
9,959 |
430 |
10,389 |
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Changes during 2022 - |
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Net profit for the year |
- |
- |
1,667 |
1,667 |
59 |
1,726 |
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Dividend |
- |
- |
(945) |
(945) |
- |
(945) |
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Other comprehensive loss, after tax effect |
- |
(122) |
- |
(122) |
(13) |
(135) |
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Balance as at |
927 |
(303) |
9,935 |
10,559 |
476 |
11,035 |
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Adjustment of the opening balance, net of tax, due to the effect of initial implementation in investee company* |
- |
- |
(10) |
(10) |
- |
(10) |
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Adjusted balance at |
927 |
(303) |
9,925 |
10,549 |
476 |
11,025 |
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Changes during 2023 - |
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Net profit for the year |
- |
- |
2,172 |
2,172 |
90 |
2,262 |
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Dividend |
- |
- |
(798) |
(798) |
- |
(798) |
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Other comprehensive income, after tax effect |
- |
148 |
- |
148 |
9 |
157 |
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Balance as at |
927 |
(155) |
11,299 |
12,071 |
575 |
12,646 |
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* Cumulative effect of the initial implementation of US accounting principles in the matter of financial instruments - credit losses (ASC-326).
(1) Including share premium of
(2) Including an amount of
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The
Upon the outbreak of war, the
FIBI has expanded it support for communities and is assistance to those who have been harmed, among others, we have been accompanying Kibbutz
We pray for the return of all of the abductees and for a speedy recovery for the many people who have been injured. We share in the sorrow of the families of the fallen and those who were murdered and we salute the soldiers of the Israeli Defense Forces.
The
The
Contact:
e-mail: zucker.d@fibi.co.i
Tel: +972-3-519-6224
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