Leumi’s shares in Valley National Bankcorp, which amounted to NIS 3.6 billion by the end of 2022, are worth only NIS 2 billion.
Bank Leumi (level:roomThe share price fell 2.62% yesterday due to concerns about US bank Valley National Bancorp, in which Leumi has a 14% stake. However, Leumi has recovered somewhat and today its share price is up 1.04%.
Valley National’s share price is down nearly 20% since Raymond James analyst Steve Moss downgraded the US bank from Strong Buy to Market Perform, due to potential revenue concerns. Moss is concerned that Valley National’s filing and financing costs are accelerating. Moss’s concerns spooked investors who are already nervous about a US bank run.
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Last year, Leumi merged Leumi US into Valley National, turning a profit of NIS 645 million, while retaining a 14% stake in Valley National. Leumi’s shares in Valley National, which amounted to NIS 3.6 billion at the end of 2022, are worth only NIS 2 billion, leaving the Bank of Israel with a significant loss on paper.
Published by Globes, Israel business news – en.globes.co.il – on May 3, 2023.
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