Discount Bank posts 40% profit rise, announces share buyback

Israel’s Discount Bank reported a 40% rise in third-quarter profit to NIS 1.2 billion. The bank’s annual return on equity in this quarter was 14.9%, which represents an improvement over the 12% return on equity in the corresponding quarter of 2023. However, for the first nine months of 2024, Discount Bank’s net profit was 3.23 billion Shekels, 1.3% lower than in the same period last year.

The bank’s net interest income amounted to NIS 2.86 billion in the third quarter, an increase of 5.8% compared to the corresponding quarter. The main contributor to the bank’s bottom line was the sharp decline in credit loss expense, which was 54% lower than in the corresponding quarter. This change is due to Discount Bank, in the corresponding quarter, creating a general provision of 0.4% of its portfolio, in accordance with the Bank of Israel’s instructions to all banks.

Discount Bank’s credit portfolio continues to grow. Net credit to the public grew by 3.2% in the third quarter to reach NIS 277 billion, which is 7.1% higher than at the end of 2023.

The bank’s board of directors announced the distribution of dividends of 30% of third-quarter profits, amounting to 341 million shekels. In addition, the bank decided for the first time on a share buyback program worth up to NIS 500 million. The bank will initially buy back the shares for NIS 144 million. This, in addition to cash dividends, represents 40% of third-quarter profits.

Published by Globes, Israel Business News – en.globes.co.il – on November 18, 2024.

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