Israel Discount Bank Announces 2011 Financial Results

TEL-AVIV, Israel, March 28, 2012 /PRNewswire/ --

Net Income - NIS 852 million compared to NIS 704 million in 2010, an increase of 21.0%

Return on Equity attributable to the Bank's shareholders - 8.2% compared to 7.0% in 2010

Net Operating Income - NIS 791 million compared to NIS 668 million in 2010, an increase of 18.4%

Q4 Net Income - NIS 222 million compared to NIS 131 million in Q4/2010

Fourth Quarter Return on Shareholders' Equity - 8.7% compared to 5.1%in the fourth quarter of 2010

Tier I Capital Ratio - 8.8%.   Core Capital Ratio - 8.1%

Ratio of Capital to Risk Assets (according to Basel II guidelines) - 14.1%

The Discount Group's Net Income in 2011 totaled NIS 852 million, compared to NIS 704 million in 2010.  The Return on Shareholders' Equity in 2011 reached 8.2%, compared to 7.0% in 2010.

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

Israel Discount Bank Limited (TASE:DSCT), one of Israel's leading banks, today reported its Q4 and 2011 financial results.

Main factors affecting the Group's business results in 2011, compared to 2010:

-    A decrease of 0.9% in income from financing activities before expenses for credit losses.

-    A decrease of 5.2% in expenses for credit losses.

-    An increase of 1.1% in operating and other income.

-    An increase of 3.2% in operating and other expenses, impacted by a 7.5% increase in salaries and related expenses.

-    A decrease of 81% in the provision for taxes on operating income, primarily with respect to an increase in the balance of deferred tax assets that were recalculated as a result of the legislative amendments that were passed pursuant to the recommendations of the Trachtenberg Committee.

-    A decrease of 44.6% in the Bank's share in operating income of affiliated companies, net of tax effect.

Main Balance Sheet Developments for 2011, compared to 2010:

-    Total Assets of the Discount Group increased by 9.1%, amounting to NIS 202.5 billion, compared to NIS 185.6 billion at the end of 2010.

-    Net Credit granted to the public, decreased by 1.9%, amounting to NIS 116.4 billion, compared to NIS 118.7 billion at the end of 2010.

-    Deposits from the public increased by 11.1%, amounting to NIS 153.4 billion, compared to NIS 138.0 billion at the end of 2010.

-    Total Equity decreased by 0.3%, amounting to NIS 11.1 billion, compared to NIS 11.2 billion at the end of 2010.

Data Regarding Subsidiaries

    2011
                                                            Return on    Capital
                                                    Net  Shareholders'  Adequacy
                                                 Income        Equity      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%

    2010
                                                            Return on    Capital
                                                    Net  Shareholders'  Adequacy
                                                 income        Equity      Ratio

    Discount Bancorp Inc.                      USD 51 M          6.9%     *14.7%
    Mercantile Discount Bank                  NIS 141 M          8.1%      13.1%
    Discount Mortgage Bank                   NIS 30.4 M          2.8%      18.3%
    Israel Credit Cards (ICC) (the Bank
    holds 71.83% of the equity)               NIS 215 M         18.3%      16.2%

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

    Discount Group - Principal Data from the Financial Statements
 
    Income and Profitability (in NIS millions)

                                               Annual          Quarterly - Q4
                                                        %                   %
                                         2011  2010  change  2011  2010  change
    Income from financing
    activities before
    expenses for credit losses          4,785 4,830   (0.9) 1,140 1,293  (11.8)
    Expenses for credit losses            778   821   (5.2)   252   274   (8.0)
    Total operating and other income    2,690 2,660    1.1    658   703   (6.4)
    Total operating and other expenses  5,838 5,659    3.2  1,461 1,566   (6.7)
    Operating income before taxes         859 1,010  (15.0)    85   156  (45.5)
    Operating income after taxes          772   552   39.9    219    52  321.2
    Net income attributed to the
    Bank's shareholders                   852   704   21.0    222   131   69.5
    Net return on equity attributed
    to the Bank's shareholders in %       8.2   7.0           8.7   5.1

    Development of Assets and Liabilities (in NIS millions)

                                    December 31  December 31          %
                                           2011         2010     change

    Total Assets                        202,491      185,576        9.1
    Net Credit granted to the public    116,383      118,666       (1.9)
    Securities                           42,898       37,176       15.4
    Deposits from the public            153,368      138,011       11.1
    Equity attributed to the Bank's
    shareholders                         10,745       10,824       (0.7)
    Total Equity                         11,115       11,152       (0.3)

    Principal Financial Ratios (in percentages)
                                                  December 31  December 31
                                                         2011         2010

    Total Equity to Total Assets                          5.5          6.0
    Ratio of capital to risk assets (Basel II)           14.1         13.2
    Core Capital ratio                                    8.1          7.6
    Expenses for credit losses to credit granted
    to the public                                        0.65         0.66
    Net Credit granted to the public, to total
    assets                                               57.5         63.9
    Net Credit granted to the public, to deposits
    from the public                                      75.9         86.0
    Deposits from the public to total assets             75.7         74.4
    Operating Income to Operating Expenses               46.1         47.0
    Operating Expenses to Total Income                   78.1         75.6
    Adjusted Return on Risk Assets                        8.1          6.7

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