Israel Discount Bank Report Second Quarter 2011 Financial Results
TEL-AVIV, Israel, August 31, 2011 /PRNewswire/ --
Q2/2011 Net Income - NIS 231 million compared to NIS 156 million in Q2/2010, an increase of 48.1%
Q2/2011 Net Return on Equity attributed to the Bank's Shareholders - 9.4% compared to 6.4% in Q2/2010
H1/2011 Net Income - NIS 509 million compared to NIS 289 million in H1/2010, an increase of 76.1%
H1/2011 Net Return on Equity attributable to the Bank's Shareholders - 10.2% compared to 6.0% in the first half of 2010 and compared to 7.0% for the whole of 2010
Ratio of Capital to Risk Assets (according to Basel II guidelines) - 13.26%.
Core Capital Ratio - 7.6%
Israel Discount Bank Limited (TASE:DSCT), one of Israel's leading banks, today reported its Q2 2011 financial results.
(Logo: http://www.newscom.com/cgi-bin/prnh/20100810/403645 )
Main factors affecting the Group's business results in the first half of 2011, compared to the corresponding period:
- An increase of 16.9% in income from financing activities before credit loss expenses.
- A decrease of 20.6% in credit loss expenses.
- An increase of 1.2% in operating and other income.
- An increase of 4.6% in operating and other expenses.
- An increase of NIS 29 million in net income from extraordinary items, net of taxes.
Main Balance Sheet Developments as at June 30, 2011:
- Total Assets increased by 0.2%, amounting to NIS 186.0 billion, compared to NIS 185.6 billion at the end of 2010.
- Credit granted to the public, net decreased by 1.2%, amounting to NIS 117.3 billion, compared to NIS 118.7 billion at the end of 2010.
- Deposits from the public increased by 0.9%, amounting to NIS 139.3 billion, compared to NIS 138.0 billion at the end of 2010.
- The equity attributable to the shareholders of the Bank decreased 4.4%, amounting to NIS 10.4 billion, compared to NIS 10.8 billion at the end of 2010.
- Total Capital declined by 4.3% to NIS 10.7 billion, compared to NIS 11.2 billion at the end of 2010.
Data Regarding Subsidiaries
H1 2011 Return on Equity Attributable Capital Net to Adequacy Income Shareholders Ratio Discount Bancorp Inc. USD 28 M 7.3% *16.2% Mercantile Discount Bank NIS 107 M 14.4% 13.2% Discount Mortgage Bank NIS 20.3 M 3.7% 16.9% Israel Credit Cards (ICC) (the Bank holds 71.8% of the equity) NIS 120 M 22.6% 15.6%
* In conformity with U.S. Reporting Standards
H1 2010 Return on Equity Attributable Capital Net to Adequacy income Shareholders Ratio Discount Bancorp Inc. USD 28 M 7.6% *14.9% Mercantile Discount Bank NIS 85 M 10.4% 13.1% Discount Mortgage Bank NIS 16 M 2.9% 18.1% Israel Credit Cards (ICC) (the Bank holds 71.8% of the equity) NIS 120 M 23.2% 16.3%
* In conformity with U.S. Reporting Standards
2010 Return on Equity Attributable Capital Net to Adequacy Income Shareholders Ratio Discount Bancorp Inc. USD 51 M 6.8% *14.7% Mercantile Discount Bank NIS 141 M 8.1% 13.2% Discount Mortgage Bank NIS 30.4 M 2.8% 18.3% Israel Credit Cards (ICC) (the Bank holds 71.8% of the equity) NIS 215 M 18.3% 16.2%
* In conformity with U.S. Reporting Standards
Discount Group - Principal Data from the Financial Statements Income and Profitability (in NIS millions) Second Quarter Half Year Annual % 2011 2010 % change 2011 2010 change 2010 Income from financing activities before credit loss expenses 1,289 1,091 18.1 2,578 2,206 16.9 4,830 Credit loss expenses 188 261 (28.0) 300 378 (20.6) 821 Operating and other income 661 659 0.3 1,314 1,298 1.2 2,660 Operating and other expenses 1,440 1,363 5.6 2,899 2,772 4.6 5,659 Operating income before taxes 322 126 155.6 693 354 95.8 1,010 Operating income after taxes 201 121 66.1 420 229 83.4 552 Net income attributable to the shareholders of the Bank 231 156 48.1 509 289 76.1 704 Return on net income in % 9.4 6.4 10.2 6.0 7.0
Development of Assets and Liabilities (in NIS millions) June 30 December 31 2011 2010 % change 2010 % change Total Assets 186,020 189,417 (1.8) 185,576 0.2 Credit granted to the public, net 117,289 116,935 0.3 118,666 (1.2) Securities 33,102 38,012 (12.9) 37,176 (11.0) Deposits from the public 139,296 140,720 (1.0) 138,011 0.9 Total Shareholders' Equity 10,671 10,433 2.3 11,152 (4.3)
PRINCIPAL FINANCIAL RATIOS (IN PERCENTAGES) June 30 December 31 2011 2010 2010 Total Equity / Total Assets 5.7 5.5 6.0 Credit granted to the public, net / Deposits from the public 84.2 83.1 86.0 Ratio of capital to risk assets (Basel II) 13.26 12.05 13.25 Core capital ratio 7.6 7.1 7.6 Credit loss expenses / Credit granted to the public 0.50 0.61 0.66 Interest margin 1.45 1.30 1.48 Operating expenses / Total income (efficiency ratio) 74.5 79.1 75.6
Israel Discount Bank
Israel Discount Bank is a leading financial group in Israel. With nationwide coverage, Israel Discount Bank provides a full spectrum of corporate and retail financial products and services to its clients, both in Israel and key financial centers around the world. Israel Discount Bank is traded on the Tel-Aviv Stock Exchange under the ticker TASE: DSCT.
Israel Discount Bank Ltd.
Head Office:
Discount Tower
23 Yehuda Halevi Street, Tel Aviv, Israel
Tel: +972-3-5145555
Website: http://www.discountbank.co.il
For additional details please contact:
SaritWeiss
Spokesperson
Tel: +972-3-5145516
Mobile: +972-52-2-461151
E-mail: spokes@discountbank.net
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