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The Jerusalem Post
The Jerusalem Post: Business and Innovation

Mizrahi Tefahot posts highest Q2 ROE among Israel's banks

 
 A man uses an ATM at Bank Mizrahi-Tefahot in Tel Aviv, Israel November 22, 2021. Picture taken November 22, 2021.  (photo credit:  REUTERS/ALI KHARA)
A man uses an ATM at Bank Mizrahi-Tefahot in Tel Aviv, Israel November 22, 2021. Picture taken November 22, 2021.
(photo credit: REUTERS/ALI KHARA)

The bank made a NIS 109 million provision for credit losses in the second quarter, down from NIS 247 million in the second quarter last year.

Mizrahi Tefahot Bank, the third largest bank in Israel, posted a net profit of NIS 1.45 billion for the second quarter, 3.4% more than in the corresponding quarter of 2023. Mizrahi Tefahot is the second bank to report an increase in profit year-on-year, after Bank Hapoalim. Discount Bank and Bank Leumi both reported declines.

Mizrahi Tefahot's annualized return on equity for the second quarter of 19.9% is the highest of all the banks, and compares with 16.4% for Bank Hapoalim, 15.9% for Bank Leumi, and 14.1% for Discount Bank. It is however lower than Mizrahi Tefahot's own annualized return on equity for the corresponding quarter of 2023 of 22%.

Mizrahi Tefahot's credit to the public grew 6.6% year-on-year to NIS 338 billion at the end of the second quarter. Deposits from the public grew by 8.2%, to NIS 374 billion.

 Mizrahi-Tefahot branch in Jerusalem on February 22, 2018. (credit: DARIO SANCHEZ/FLASH90)
Mizrahi-Tefahot branch in Jerusalem on February 22, 2018. (credit: DARIO SANCHEZ/FLASH90)

Credit losses

The bank made a NIS 109 million provision for credit losses in the second quarter, down from NIS 247 million in the second quarter last year.

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Mizrahi Tefahot will distribute a cash dividend of NIS 580.8 million for the second quarter, representing 40% of its net profit, a similar proportion to the distributions by Hapoalim and Leumi (which both partly consisted of share buybacks). Discount Bank will distribute 30% of its profit.

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