Bank Leumi concludes 2023 with a net income of approx. NIS 7 billion ($1.93 billion)
-
Return on equity for the year - net of the one-off deduction recorded in the first quarter with respect to the investment value in
Valley National Bank - was 15.9%; Net income - net of the one-off deduction - totaledNIS 8.1 billion ($2.23 billion ) . Without the neutralization – the net income in 2023 totaledNIS 7 billion ($1.93 billion ) and return on equity was 13.7% - Mortgages: an annual growth of 9% - the highest in the banking system
- Best efficiency ratio among Israeli banks: 32.6%
- Robust financial indicators: liquidity coverage ratio of 124% and total capital ratio of 14.72%
-
Dividend: following the guidance of the
Bank of Israel ,Leumi distributes 20% of the net income for the fourth quarter -NIS 365 million ($101 million ). The total amount of distribution (dividend + share buyback) in 2023 isNIS 2.35 billion ($0.65 billion ) - O n the back of the war, loan loss expenses (mainly the collective provision) in 2023 reflect an expense rate of 0.58%, while the specific provision rate was only 0.08%
-
Total estimated costs of the relief programs and donations provided by
Leumi to customers and the public following the War is estimated atNIS 575 million ($159 million ) -
In the first quarter of 2024, a one-time capital gain of
NIS 830 million ($229 million ) is expected, once the transition of the Bank's HQ to Lod is completed
Net income in 2023 totaled
Return on equity in 2023 was 13.7%, compared with 17% in 2022. Return on equity - net of the one-off deduction recorded in the first quarter with respect to the investment value in
The efficiency ratio in 2023 was 32.6%, compared with 37.5% in 2022.
Dividend: Following on the guidance of the
Responsible growth in the loan portfolio in strategic segments: the Bank continues to focus its growth on the credit portfolio in the corporate, commercial and mortgage segments. In 2023, the credit portfolio grew by a total of 9%, with the corporate portfolio growing by 16%, the commercial portfolio - by 3% and the mortgage portfolio - by 9%.
The NPL ratio, which reflects the quality of the Bank's loan portfolio, continues to be amongst the lowest in the Israeli banking system - 0.85% as of
Loan loss expenses in 2023 reflect an expense rate of 0.58% of the average outstanding loans to the public. Most of the expense stems from the collective provision in light of the war. The specific provision rate was only 0.08%.
High capital adequacy: Common Equity Tier 1 capital ratio as of
Liquidity coverage ratio as of
The Bank's initiatives due to the War: Leumi significantly expanded the
In addition, since the outbreak of the war, the Bank made substantial donations to first responder and aid organizations for the benefit of residents of southern
Sale of
Development of balance sheet items:
Shareholders' equity as at
Net credit to the public as at
Housing loans (mortgages) as at
Credit to retail customers as at
Credit to small businesses as at
Middle-market credit as at
Corporate credit (including real estate) as at
Deposits by the public as at
Deposits by retail customers as at
Deposits by small businesses as at
CET1 capital ratio as at
Total capital ratio as at
"I am proud that even during this period, as throughout the history of the
"The financial statements for 2023 published today reflect, more than ever, the Bank's resilience. Our superb loan portfolio indicators, solid capital base and efficiency ratio - which is not only one of the best locally, but also globally - reflect
In light of this complex period, I would like to end with a prayer in the name of the entire
|
||||
Profit and profitability (in NIS million) |
||||
|
For the year ended |
Change in NIS million |
Change in % |
|
2023 |
2022 |
|||
Net interest income |
15,997 |
13,211 |
2,786 |
21.1 |
Loan loss expenses |
2,383 |
498 |
1,885 |
378.5 |
Non-interest income |
5,181 |
5,018 |
163 |
3.2 |
Operating and other expenses |
6,894 |
6,835 |
59 |
0.9 |
Profit before tax |
11,901 |
10,896 |
1,005 |
9.2 |
Provision for tax |
3,988 |
3,564 |
424 |
11.9 |
Profit after tax |
7,913 |
7,332 |
581 |
7.9 |
The Bank's share in the profits (losses) of |
(886) |
387 |
(1,273) |
|
Net income attributable to non-controlling |
0 |
(10) |
10 |
|
Net income attributable to the banking |
7,027 |
7,709 |
(682) |
(8.8) |
Return on equity (%) |
13.7 |
17.0 |
|
|
Earnings per share (NIS) |
4.58 |
5.14 |
|
|
Development of balance sheet items (in NIS million) |
|||
|
|
Change in % |
|
2023 |
2022 |
||
Net loans to the public net |
419,486 |
384,782 |
9.0 |
Deposits by the public |
567,824 |
557,084 |
1.9 |
Shareholders' equity |
54,497 |
49,438 |
10.2 |
Total assets |
731,497 |
699,166 |
4.6 |
Principal financial ratios (%) |
||
|
|
|
2023 |
2022 |
|
Net loans to the public to total assets |
57.3 |
55.0 |
Deposits by the public to total assets |
77.6 |
79.7 |
Total equity to risk assets |
14.72 |
14.29 |
Tier 1 capital to risk assets |
11.66 |
11.46 |
Leverage ratio |
6.65 |
6.36 |
Liquidity coverage ratio |
124 |
131 |
The data in this press release has been converted into US dollars solely for convenience purposes, at the representative exchange rate published by the
Webcast and Conference Call Details
A webcast and conference call for analysts and investors will be held today at 5 PM (
To access the webcast, please register via the link below:
https://veidan.activetrail.biz/BankLeumiQ4-2023
To access the conference call please use one of the numbers below (no passcode required):
US & Canada: 1-888-407-2553
All other locations: +972-3-918-0610
The conference call and webcast will make use of a presentation which will be published on the day of the publication of the Financial Results on the
An archived recording of the webcast will be available on the
For more information visit the investor relations page on our website or contact Michael Klahr, VP, Head of Investor Relations, at investorrelations@bankleumi.co.il
The conference call and webcast does not replace the need to review the latest periodic/quarterly reports containing full information, including forward-looking information, as defined in the Israeli Securities Law, and set out in the aforementioned reports.
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