Mizrahi Tefahot to pay huge dividend on record 2024 profit

Mizrahi Tefahot Bank (Tase: MZTF) witnessed a 11 % increase in net profits in 2024. The bank informed its fourth financial results and the full 2024 this morning with a net net profit of 5.5 billion NIS last year, and the bank's return is likely to be in 2023.

In the fourth quarter, the shares were 16.9 %, with a slight increase of 15.5 % in the corresponding quarter of 2023.

The bank announced that it will distribute 40 % of its profits in the fourth quarter as profit distributions, amounting to 522 million. In general in 2024, the bank distributed profits of 2.18 billion NIS, about half of which would go to the owners of control, Westheim and Offer.

The bank said: “Despite the important and complex challenges, the Israeli economy faced throughout 2024 in the wake of the iron swords war and its effects on all aspects of life in Israel, in 2024, the bank presented an annual profit of 5,455 million New, while maintaining the momentum of growth in many major areas and main budget elements, both compared to 2023 by returning to 202.”

Mizrahi Tefahot's revenues increased by 7.5 % to 11.3 billion New in 2024, and it has multiplied more than twice since 2020, when it was 4.8 billion New. The bank indicated that net profit was affected over the past year, among other things, through low income income due to low interest rates in the United States, and the low interest rate in the Bank of Israel (by 0.25 % at the beginning of last year, and has not decreased since then). This trend has transferred money from the current accounts, which pay almost no benefit to deposits. The bank also indicated that since the beginning of 2024, the direction of growth in income financing has been regained from current activities gradually.

In 2024, credit losses expected 519 million New fell from 1.46 billion New in 2023, which was mainly due to the provisions that the Bank of Israel ordered the banking system to do due to an increase in credit risk due to the war. The same applies due to the increase in the risk level due to the interest rate in the economy. The average credit losses of the public was 0.14 % last year, compared to 0.45 % in 2023.

“Despite the many difficulties, we have achieved all our goals, whether social or business, in a complete and invisible way. In addition, the bank's employees participated in many charitable activities and volunteers, and gave an expression of the unique Israeli spirit of mutual support and solidarity,” said Moshe Larry, CEO of Mizrahi Tefahot Bank.

In 2024, the bank had 7,174 employees on average, similar to 7148 employees in 2023, but they decreased from 7,636 employees in 2022. The bank had 205 branches at the end of 2024, as in 2023.

It was published by Globes, Israel Business News – En.globes.co.il – on February 27, 2025.

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