The First International Bank Reports its Financial Results for the First Quarter of 2024
Results reflect high profitability while maintaining financial stability
Financial Highlights
- Net income of NIS 569 million in the first quarter of 2024
- The Return on equity was 18.7%
- Deposits by the public increased by 2.9% compared to the end of 2023 and by 13.4% compared to the comparative period in the previous year
- The portfolio of customers' assets increased by 7.2% compared to the end of 2023 and by 23.4% compared to the first quarter of 2023, reaching approximately NIS 720 billion
- Equity attributed to shareholders of the Bank increased by 13.5% compared to the end of the first quarter of 2023
- The tier 1 shareholders' equity was 11.78% and the liquidity cover ratio was 161%
- The Bank's Board of Directors decided to distribute a dividend, amounting to 40% of the net income for the quarter
Financial Results of the First Quarter 2024
Net income for the
Total revenue amounted to
Given the quality of the credit portfolio, as well as the building-up of provisions in recent quarters, total income from credit losses amounted to
The ratio of high quality credit to non-performing loans (NPL) remained stable during the first quarter of 2024 and stood at 0.6%. The ratio indicates the quality of the credit portfolio (the balance of non-accrual loans or loans in arrears of 90 days or more) as a percentage of total credit to the public. The overall coverage ratio (the percentage of the total allowance for credit losses to the total amount of the credit to the public) stood at 1.53%.
Operating and other expenses amounted to
The efficiency ratio was 46.2% in the first quarter of 2024, compared to 43.5 % in the first quarter of 2023.
The provision for taxes on income amounted to
Credit to the public amounted to
Deposits by the public amounted to
The equity attributed to the Bank's shareholders increased to
Taking into consideration the Supervisor of Banks' directives regarding Capital Planning and Profits Distribution Policies, the Bank's Board of Directors decided to approve the distribution of a cash dividend at a rate of 40% of equity. The Bank's Board of Directors will continue to implement the Bank's dividend distribution policy, monitoring ongoing developments and their impact on the Israeli economy and on the bank.
"
CONDENSED PRINCIPAL FINANCIAL INFORMATION AND PRINCIPAL EXECUTION INDICES |
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Principal financial ratios |
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For the three months |
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For the year
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2024 |
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2023 |
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2023 |
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Percent |
Principal execution indices |
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Return on equity attributed to shareholders of the Bank (1) |
18.7 |
23.6 |
19.7 |
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Return on average assets (1) |
1.03 |
1.28 |
1.06 |
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Ratio of equity capital tier 1 |
11.78 |
10.55 |
11.35 |
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Leverage ratio |
5.27 |
5.15 |
5.26 |
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Liquidity coverage ratio |
161 |
131 |
156 |
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Net stable funding ratio |
150 |
133 |
146 |
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Ratio of total income to average assets (1) |
2.9 |
3.5 |
3.2 |
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Ratio of interest income, net to average assets (1) |
2.0 |
2.6 |
2.4 |
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Ratio of fees to average assets (1) |
0.7 |
0.8 |
0.7 |
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Efficiency ratio |
46.2 |
42.6 |
43.5 |
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Credit quality indices |
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Ratio of provision for credit losses to credit to the public |
1.38 |
1.06 |
1.36 |
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Ratio of total provision for credit losses (2) to credit to the public |
1.53 |
1.17 |
1.50 |
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Ratio of non-accruing debts or in arrears of 90 days or more to credit to the public |
0.60 |
0.47 |
0.60 |
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Ratio of provision for credit losses to total non-accruing credit to the public |
236.1 |
232.5 |
234.5 |
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Ratio of net write-offs to average total credit to the public (1) |
(0.02) |
(0.04) |
0.03 |
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Ratio of expenses (income) for credit losses to average total credit to the public (1) |
(0.01) |
0.25 |
0.42 |
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Principal data from the statement of income |
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For the three months
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2024 |
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2023 |
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NIS million |
Net profit attributed to shareholders of the Bank |
|
569 |
|
631 |
Interest Income, net |
1,115 |
1,275 |
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Expenses (income) from credit losses |
(2) |
72 |
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Total non-Interest income |
466 |
425 |
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Of which: Fees |
365 |
388 |
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Total operating and other expenses |
731 |
724 |
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Of which: Salaries and related expenses |
442 |
449 |
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Primary net profit per share of |
5.67 |
6.29 |
Principal data from the balance sheet |
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NIS million |
Total assets |
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225,941 |
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204,312 |
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221,593 |
of which: Cash and deposits with banks |
76,731 |
57,763 |
68,866 |
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Securities |
26,375 |
19,756 |
26,985 |
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Credit to the public, net |
115,199 |
118,502 |
117,622 |
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Total liabilities |
212,989 |
192,923 |
208,947 |
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of which: Deposits from the public |
196,615 |
173,390 |
191,125 |
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Deposits from banks |
3,586 |
5,481 |
4,314 |
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Bonds and subordinated capital notes |
4,736 |
4,770 |
4,767 |
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Capital attributed to the shareholders of the Bank |
12,355 |
10,888 |
12,071 |
Additional data |
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Share price ( |
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15,440 |
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12,650 |
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14,990 |
Dividend per share ( |
268 |
267 |
795 |
(1) Annualized.
(2) Including provision in respect of off-balance sheet credit instruments.
CONSOLIDATED STATEMENT OF INCOME
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For the three months |
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For the year Ended |
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2024 |
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2023 |
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2023 |
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(unaudited) |
(unaudited) |
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(audited) |
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Interest Income |
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2,576 |
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2,176 |
|
9,850 |
Interest Expenses |
1,461 |
901 |
4,884 |
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Interest Income, net |
1,115 |
1,275 |
4,966 |
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Expenses (income) from credit losses |
(2) |
72 |
502 |
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Net Interest Income after expenses from credit losses |
1,117 |
1,203 |
4,464 |
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Non- Interest Income |
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Non-Interest Financing income |
100 |
36 |
142 |
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Fees |
365 |
388 |
1,502 |
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Other income |
1 |
1 |
8 |
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Total non- Interest income |
466 |
425 |
1,652 |
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Operating and other expenses |
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Salaries and related expenses |
442 |
449 |
1,746 |
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Maintenance and depreciation of premises and equipment |
87 |
84 |
341 |
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Amortizations and impairment of intangible assets |
31 |
30 |
122 |
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Other expenses |
171 |
161 |
668 |
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Total operating and other expenses |
731 |
724 |
2,877 |
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Profit before taxes |
852 |
904 |
3,239 |
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Provision for taxes on profit |
279 |
315 |
1,090 |
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Profit after taxes |
573 |
589 |
2,149 |
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The bank's share in profit of equity-basis investee, after taxes |
18 |
65 |
113 |
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Net profit: |
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Before attribution to non–controlling interests |
591 |
654 |
2,262 |
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Attributed to non–controlling interests |
(22) |
(23) |
(90) |
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Attributed to shareholders of the Bank |
569 |
631 |
2,172 |
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NIS |
Primary profit per share attributed to the shareholders of the Bank |
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Net profit per share of |
5.67 |
6.29 |
21.65 |
The notes to the financial statements are an integral part thereof.
STATEMENT OF COMPREHENSIVE INCOME
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For the three months |
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For the year Ended |
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2024 |
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2023 |
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2023 |
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(unaudited) |
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(unaudited) |
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(audited) |
Net profit before attribution to non–controlling interests |
|
591 |
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654 |
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2,262 |
Net profit attributed to non–controlling interests |
(22) |
(23) |
(90) |
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Net profit attributed to the shareholders of the Bank |
569 |
631 |
2,172 |
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Other comprehensive income (loss) before taxes : |
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Adjustments of available for sale bonds to fair value, net |
(44) |
(30) |
213 |
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Adjustments of liabilities in respect of employee benefits (1) |
11 |
(3) |
25 |
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Other comprehensive income (loss) before taxes |
(33) |
(33) |
238 |
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Related tax effect |
17 |
11 |
(81) |
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Other comprehensive income (loss) before attribution to non–controlling interests, after taxes |
(16) |
(22) |
157 |
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Less other comprehensive income attributed to non–controlling interests |
- |
2 |
9 |
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Other comprehensive income (loss) attributed to the shareholders of the Bank, after taxes |
(16) |
(24) |
148 |
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Comprehensive income before attribution to non–controlling interests |
575 |
632 |
2,419 |
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Comprehensive income attributed to non–controlling interests |
(22) |
(25) |
(99) |
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Comprehensive income attributed to the shareholders of the Bank |
553 |
607 |
2,320 |
(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 income.
CONSOLIDATED BALANCE SHEET
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2024 |
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2023 |
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2023 |
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(unaudited) |
(unaudited) |
(audited) |
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Assets |
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Cash and deposits with banks |
76,731 |
57,763 |
68,866 |
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Securities |
26,375 |
19,756 |
26,985 |
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Securities which were borrowed |
2 |
45 |
57 |
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Credit to the public |
116,816 |
119,769 |
119,240 |
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Provision for Credit losses |
(1,617) |
(1,267) |
(1,618) |
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Credit to the public, net |
115,199 |
118,502 |
117,622 |
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Cred it to the g overnment |
965 |
935 |
1,055 |
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Investment in investee compan y |
800 |
730 |
786 |
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Premises and equipment |
867 |
899 |
877 |
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Intangible assets |
325 |
307 |
328 |
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Assets in respect of derivative instruments |
3,324 |
4,047 |
3,651 |
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Other assets ( 2 ) |
1,353 |
1,328 |
1,366 |
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Total assets |
225,941 |
204,312 |
221,593 |
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Liabilities and Shareholders' Equity |
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Deposits from the public |
196,615 |
173,390 |
191,125 |
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Deposits from banks |
3,586 |
5,481 |
4,314 |
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Deposits from the Government |
710 |
828 |
750 |
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Bonds and subordinated capital notes |
4,736 |
4,770 |
4,767 |
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Liabilities in respect of derivative instruments |
3,085 |
3,572 |
3,784 |
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Other liabilities ( 1 )( 3 ) |
4,257 |
4,882 |
4,207 |
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Total liabilities |
212,989 |
192,923 |
208,947 |
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Capital attributed to the shareholders of the Bank |
12,355 |
10,888 |
12,071 |
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Non-controlling interests |
597 |
501 |
575 |
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Total equity |
12,952 |
11,389 |
12,646 |
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Total liabilities and shareholders' equity |
225,941 |
204,312 |
221,593 |
(1) Of which: provision for credit losses in respect of off-balance sheet credit instruments in the amount of NIS 170 million and
(2) Of which: other assets measured at fair value in the amount of NIS 5 million and
(3) Of which: other liabilities measured at fair value in the amount of NIS 5 million and
STATEMENT OF CHANGES IN EQUITY
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For the three months ended |
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Share capital |
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Accumulated other |
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Retained |
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Total share-holders' |
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Non- controlling |
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Total |
Balance as at |
927 |
(155) |
11,299 |
12,071 |
575 |
12,646 |
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Net profit for the period |
- |
- |
569 |
569 |
22 |
591 |
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Dividend |
- |
- |
(269) |
(269) |
- |
(269) |
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Other comprehensive loss, after tax effect |
- |
(16) |
- |
(16) |
- |
(16) |
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Balance as at |
927 |
(171) |
11,599 |
12,355 |
597 |
12,952 |
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For the three months ended |
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Share capital |
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Accumulated other |
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Retained |
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Total share-holders' |
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Non- controlling |
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Total |
Balance as at |
927 |
(303) |
9,935 |
10,559 |
476 |
11,035 |
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Adjustment of the opening balance, net of tax, |
- |
- |
(10) |
(10) |
- |
(10) |
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Adjusted balance at |
927 |
(303) |
9,925 |
10,549 |
476 |
11,025 |
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Net profit for the period |
- |
- |
631 |
631 |
23 |
654 |
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Dividend |
- |
- |
(268) |
(268) |
- |
(268) |
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Other comprehensive income (loss), after tax effect |
- |
(24) |
- |
(24) |
2 |
(22) |
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Balance as at |
927 |
(327) |
10,288 |
10,888 |
501 |
11,389 |
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For year ended |
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Share capital |
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Accumulated other |
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Retained |
|
Total share-holders' |
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Non- controlling |
|
Total |
Balance as at |
927 |
(303) |
9,935 |
10,559 |
476 |
11,035 |
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Adjustment of the opening balance, net of tax, |
- |
- |
(10) |
(10) |
- |
(10) |
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Adjusted balance at |
927 |
(303) |
9,925 |
10,549 |
476 |
11,025 |
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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 |
* 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 NIS 313 million (as from 1992 onwards).
(2) Including an amount of
Contact:
zucker.d@fibi.co.i
+972-3-519-6224
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