Mizrahi Tefahot Bank, Israel’s third-largest bank, reported a net profit of NIS 1.45 billion in the second quarter, up 3.4% from the same quarter in 2023. Mizrahi Tefahot is the second bank to report an increase in profits on an annual basis, after Bank Hapoalim. Discount Bank and Bank Leumi also reported a decline in profits.
Mizrahi Tefahot Bank’s annualized return on equity for the second quarter of 19.9% is the highest among all banks, compared to 16.4% for Bank Hapoalim, 15.9% for Bank Leumi, and 14.1% for Discount Bank. However, it is lower than Mizrahi Tefahot Bank’s annualized return on equity for the corresponding quarter of 2023, which was 22%.
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Mizrahi Tefahot Bank’s loans to the public rose by 6.6% year-on-year to NIS 338 billion at the end of the second quarter. Public deposits rose by 8.2% to NIS 374 billion.
The bank booked NIS 109 million in provisions for credit losses in the second quarter, down from NIS 247 million in the second quarter of last year.
Mizrahi Tefahot will distribute cash dividends of NIS 580.8 million for the second quarter, representing 40% of its net profits, a similar percentage to the dividends paid by Bank Hapoalim and Bank Leumi (which were partly comprised of share buybacks). Discount Bank will distribute 30% of its profits.
This article was published in Globes, Israeli Business News – en.globes.co.il – on August 15, 2024.
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