Israel Discount Bank Reported Q1 Net Income NIS 278 Million Compared to NIS 143 Million in Q1/2010, an Increase of 94.4%
TEL-AVIV, Israel, May 31, 2011 /PRNewswire/ --
- Israel Discount Bank Limited (TASE:DSCT), One of Israel's Leading Banks, Today Reported Q1 2011 Financial Results
Headline Data for Q1 2011
Q1 Net Income - NIS 278 million compared to NIS 143 million in Q1/2010, an increase of 94.4%
Q1 Return on Equity attributed to the Bank's Shareholders - 10.8% compared to 5.8% in the first quarter of 2010
Ratio of Capital to Risk Assets (according to Basel II guidelines) - 13.39%.
Core Capital Ratio - 7.7%
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The Discount Group's Net Income in the first quarter of 2011 totaled NIS 278 million, compared to NIS 143 million in the first quarter of 2010, a 94.4% increase. The Return on Equity attributed to the Bank's Shareholders in the first quarter of 2011 reached 10.8%, compared to 5.8% in the first quarter of 2010.
Main factors affecting the Group's business results in the first quarter of 2011, compared to the corresponding period:
- An increase of 15.6% in income from financing activities before expenses for credit losses.
- A decrease of 4.3% in the expenses for credit losses.
- An increase of 2.0% in operating and other income.
- An increase in Operating and Other expenses of 4.5%.
- An increase in Provision for Taxes on Operating Income of NIS 28m.
Main Balance Sheet Developments in Q1 2011:
- Total Assets decreased by 1.0%, amounting to NIS 184.0 billion, compared to NIS 185.8billion at the end of 2010.
- Net Credit granted to the public decreased by 1.7%, amounting to NIS 116.7 billion, compared to NIS 118.7 billion at the end of 2010.
- Securities decreased by 7.9%, amounting to NIS 34.3 billion, compared to NIS 37.2 billion at the end of 2010.
- Deposits from the public decreased by 1.4%, amounting to NIS 136.1 billion, compared to NIS 138.0 billion at the end of 2010.
- The equity attributable to the equity holders of the Bank decreased by 6.7%, amounting to NIS 10.5 billion, compared to NIS 11.2 billion at the end of 2010.
- Total Capital declined by 6.5% to NIS 10.8 bln compared to NIS 11.6 bln at YE 2010
Data Regarding Subsidiaries
Q1 2011 Capital Net Return on Adequacy Income Equity Ratio Discount Bancorp Inc. USD 14 M 7.6% *16.0% Mercantile Discount Bank NIS 43 M 10.6% 12.8% Discount Mortgage Bank NIS 8.9 M 3.3% 17.0% Israel Credit Cards (ICC) (the Bank holds 71.8% of the equity) NIS 64 M 26.1% 16.3%
* In conformity with U.S. Reporting Standards
Q1 2010 Capital Net Return on Adequacy income Equity Ratio Discount Bancorp Inc. USD 15 M 8.6% *15.0% Mercantile Discount Bank NIS 30 M 7.3% 12.4% Discount Mortgage Bank NIS 6.2 M 2.3% 19.2% Israel Credit Cards (ICC) (the Bank holds 71.8% of the equity) NIS 64 M 25.8% 16.0%
* In conformity with U.S. Reporting Standards
2010 Capital Net Return on Adequacy Income Equity Ratio Discount Bancorp Inc. USD 51 M 6.8% *14.7% Mercantile Discount Bank NIS 147 M 8.2% 13.6% 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) First Quarter % Annual 2011 2010 change 2010 Income from financing activities before expenses for credit losses 1,289 1,115 15.6 4,830 Expenses for credit losses 112 117 (4.3) 821 Operating and other income 653 640 2.0 2,661 Operating and other expenses 1,460 1,397 4.5 5,631 Operating income before taxes 370 241 53.5 1,039 Operating income after taxes 219 118 85.6 572 Net operating income 240 143 67.8 688 Net income attributable to the equity holders of the Bank 278 143 94.4 724 Return on net income in % 10.8 5.8 6.9
Development of Assets and Liabilities (in NIS millions)
March 31 December 31 % % 2011 2010 change 2010 change Total Assets 184.0 187.2 (1.7) 185.8 (1.0) Credit granted to the public 116.7 114.3 2.1 118.7 (1.7) Securities 34.3 36.6 (6.3) 37.2 (7.9) Deposits from the public 136.1 139.9 (2.7) 138.1 (1.4) Equity attributable to the bank's shareholders 10.5 10.3 1.9 11.2 (6.7) Total Equity 10.8 10.6 1.8 11.6 (6.5)
Principal Financial Ratios (in percentages)
March 31 December 31 2011 2010 2010 Total Equity / Total Assets 5.9 5.7 6.2 Net credit granted to the public / Deposits from the public 85.7 81.7 86.0 Ratio of capital to risk assets (Basel II) 13.39 12.50 13.69 Core capital ratio 7.7 7.7 7.9 Expenses for credit losses / credit granted to the public 0.38 0.39 0.66 Interest margin 1.49 1.37 1.48 Operating Expenses / total income 75.2 79.6 75.2
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 centres around the world. Israel Discount Bank is traded on the Tel-Aviv Stock Exchange under the ticker 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: Sarit Weiss Spokesperson Tel: +972-3-5145516 Mobile: +972-52-2-461151 E-mail: spokes@discountbank.net
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