Israel Discount Bank Announces Q1/2012 Financial Results

TEL-AVIV, Israel, May 31, 2012 /PRNewswire/ --

Q1 Net Income - NIS247 million compared to NIS278 million in Q1/2011, a decrease of 11.2%

First Quarter Return on Equity Attributable to the Bank's Shareholders - 9.5% compared to 11.3% in the first quarter of 2011

Ratio of Capital to Risk Assets - 14.1%.  Core Capital Ratio - 8.2%

Israel Discount Bank Limited (TASE:DSCT), one of Israel's leading banks, today reported its Q1/2012 financial results.

     (Logo: http://www.newscom.com/cgi-bin/prnh/20100810/403645 )

The Discount Group's Net Income in Q1/2012 totaled NIS 247 million, compared to NIS 278 million in Q1/2011, a decrease of 11.2%.  The Return on Equity attributable to the Bank's shareholders' in Q1/2012 was 9.5%, compared to 11.3% in Q1/2011.

 

Main factors affecting the Group's business results in Q1/2012, compared to Q1/2011:

-    A decrease of 3.1% in interest income, net.

-    An increase of 9.8% in credit loss expenses.

-    A decrease of 0.1% in non-interest income.

-    An increase of 2.5% in operating and other expenses.

-    A provision for taxes of NIS 115 million, compared to NIS 171 million in Q1/2011.

-    A decrease of 25.6% in the Bank's share in operating income of affiliated companies, net of tax effect.

Main Balance Sheet Developments for Q1/2012:

-    Total Assets decreased by 1.6%, amounting to NIS 199.3 billion, compared to NIS 202.5 billion at the end of 2011.

-    Net Credit granted to the public, decreased by 1.1%, amounting to NIS 115.1 billion, compared to NIS 116.4 billion at the end of 2011.

-    Securities increased by 5.5%, amounting to NIS 45.2 billion, compared to NIS 42.9 billion at the end of 2011.

-    Deposits from the public decreased by 2.3%, amounting to NIS 149.8 billion, compared to NIS 153.4 billion at the end of 2011.

-    The Equity attributed to the Bank's shareholders increased by 2.0%, amounting to NIS 10.9 billion, compared to NIS 10.7 billion at the end of 2011.

-    Total Equity increased by 2.0%, amounting to NIS 11.2 billion, compared to NIS 11.0 billion at the end of 2011.

Data Regarding Subsidiaries

    Q1/2012
                                                         Return on
                                                         Equity
                                                         Attributable Capital
                                               Net       to           Adequacy
                                               Income    Shareholders Ratio
    Discount Bancorp Inc.                       USD 7 M          3.7%   *15.7%
    Mercantile Discount Bank                   NIS 39 M          9.1%    14.0%
    Discount Mortgage Bank                   NIS 14.5 M          6.9%    13.1%
    Israel Credit Cards (ICC) (the Bank holds
    71.8% of the equity)                       NIS 50 M         18.5%    17.3%

 

* In conformity with mandatory rules in the U.S.A.

    Q1/2011
                                                         Return on
                                                         Equity
                                                         Attributable Capital
                                               Net       to           Adequacy
                                               income    Shareholders Ratio
    Discount Bancorp Inc.                      USD 14 M          7.6%   *16.0%
    Mercantile Discount Bank                   NIS 39 M          9.9%    12.4%
    Discount Mortgage Bank                    NIS 8.9 M          3.3%    17.0%
    Israel Credit Cards (ICC) (the Bank holds
    71.83% of the equity)                      NIS 64 M         26.1%    16.0%

 

* In conformity with mandatory rules in the U.S.A.

    2011
                                                         Return on
                                                         Equity
                                                         Attributable Capital
                                              Net        to           Adequacy
                                              Income     Shareholders Ratio
    Discount Bancorp Inc.                      USD 46 M          5.9%   *16.5%
    Mercantile Discount Bank                  NIS 162 M          9.6%    13.2%
    Discount Mortgage Bank                   NIS 45.3 M          4.0%    13.9%
    Israel Credit Cards (ICC) (the Bank holds
    71.83% of the equity)                     NIS 230 M         20.6%    16.7%

 

* In conformity with mandatory rules in the U.S.A.

Discount Group - Principal Data from the CONSOLIDATED
Financial Statements

    Income and Profitability (in NIS millions)
                                    First Quarter        Annual

                                    2012  2011  % change   2011
    Interest income, net            1,098 1,133    (3.1)  4,617
    Credit loss expenses              123   112     9.8     778
    Total non-interest income         865   866    (0.1)  2,930
    Total operating and other
    expenses                        1,496 1,459     2.5   5,838
    Profit after taxes                229   257   (10.9)    817
    Net income attributed to the
    Bank's shareholders               247   278   (11.2)    848
    Net return on equity attributed
    to the Bank's shareholders - In
    %                                 9.5  11.3

 

    Development of Assets and Liabilities (in NIS millions)
                                       March 31                 December 31
                                     2012    2011   % change  2011   % change
    Total Assets                    199,314 183,761      8.5 202,471    (1.6)
    Credit granted to the public,
    net                             115,080 116,670     (1.4)116,383    (1.1)
    Securities                       45,240  34,257     32.1  42,898     5.5
    Deposits from the public        149,811 136,088     10.1 153,368    (2.3)
    Equity attributed to the Bank's
    shareholders                     10,919  10,058      8.6  10,701     2.0
    Total Equity                     11,243  10,380      8.3  11,020     2.0

 

    Principal Financial Ratios (in percentages)
                                                 March 31      December 31
                                                 2012     2011       2011

    Total Equity to Total Assets                  5.6      5.6         5.4
    Ratio of capital to risk assets              14.1     12.9        14.1
    Core Capital ratio                            8.2      7.4         8.1
    Credit loss expenses to credit granted
    to the public, net                           0.42     0.38        0.65
    Credit granted to the public net to
    total assets                                 57.7     63.5        57.5
    Credit granted to the public net to
    deposits from the public                     76.8     85.7        75.9
    Deposits from the public to total assets     75.2     74.1        75.7
    Total Non-Interest Income to Operating
    Expenses                                     57.8     59.4        50.2
    Operating Expenses to Total Income           76.2     73.0        77.4
    Adjusted Return on Risk Assets               10.1     10.9         8.1

 

 

Israel Discount Bank Ltd.
Head Office:
Discount Tower
23 Yehuda Halevi Street, Tel Aviv, Israel
Tel: +972-3-5145555
Mobile: +972-52-2461151
Website: http://www.discountbank.co.il

For additional details please contact:
Sarit Weiss
Spokesperson
Tel: +972-3-5145516
Mobile: +972-52-2461151
E-mail: spokes@discountbank.net

 

SOURCE Israel Discount Bank Ltd