The recent rate hikes have boosted the net profit of Bank Leumi (TASE:LUMI) in the third quarter of 2022 by 30% to NIS 1.8 billion ($508 million), compared with NIS 1.6 billion ($452 million) in the corresponding quarter last year. Net profit in the first nine months of the year, the Israeli bank reported today in its third quarter results, reached NIS 5.4 billion ($1.5 billion), compared with NIS 4.6 billion ($1.3 billion) in the corresponding period last year.
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Bank Leumi’s eturn on equity in the third quarter of 2022 was 14.9%, compared with 15.1% in the corresponding quarter last year. Return on equity in the first nine months of the year was 16.3%, compared with 15.4% in the corresponding period last year. Common Equity Tier 1 capital as of September 30, 2022 was 11.41%, and the total capital ratio was 14.28%.
Leumi said it will distribute a NIS 356 million dividend ($100 million), which represents 20% of the net income for the third quarter of 2022.
Bank Leumi continues to focus its growth on the credit portfolio in the corporate, commercial and mortgage segments. Net of the effects of Leumi USA’s merger, during the first nine months of the year the credit portfolio grew by 17.9%. The corporate portfolio (including real estate) increased by 24%; the commercial portfolio was up by 18% and the mortgage portfolio was up 13%. Leumi added that the rate of troubled debts also continues to improve and decreased to 1.53%, as of the end of the third quarter.
Bank Leumi president and CEO Hanan Friedman said, “The financial results reflect the successful implementation of our strategy in business segments that are in focus. The healthy growth – which we present methodically – is achieved by meticulous risk management, alongside providing convenient banking, customized to every customer’s needs across all service channels, that is based on advanced technological tools, data and models. The infrastructures we have created will allow us to continue to do much more – using less resources”.
Published by Globes, Israel business news – en.globes.co.il – on November 29, 2022.
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