Israel Discount Bank Announces Q4 & Full Year 2009 Financial Results
TEL AVIV, Israel, March 25, 2010 /PRNewswire-FirstCall/ -- Israel Discount Bank Limited (TASE: DSCT), one of Israel's leading banks, announces Q4 & Full Year 2009 Financial results:
FINANCIAL HIGHLIGHTS FOR 2009:
- NET INCOME - NIS 923 MILLION ($244.5 MILLION), COMPARED WITH NIS 245
MILLION ($64.9 MILLION) FOR 2008, AN INCREASE OF 277%
- RETURN ON EQUITY FOR 2009 - 9.8%, COMPARED WITH 2.7% FOR 2008
- NET OPERATING INCOME - NIS 943 MILLION ($249.8 MILLION), COMPARED WITH
NIS 255 MILLION ($67.5 MILLION) FOR 2008, AN INCREASE OF 270%.
- NET INCOME FOR 4th QUARTER NIS 154 MILLION ($40.8 MILLION), COMPARED to
A LOSS OF NIS 121 MILLION ($32.1 MILLION) for THE CORRESPONDING PERIOD.
- RETURN ON EQUITY FOR THE 4TH QUARTER - 6.3%, COMPARED TO
A NEGATIVE RETURN OF 5.5% for the CORRESPONDING PERIOD.
- CAPITAL ADEQUACY RATIO - 13.12%. tier 1 capital ratio - 8.8%
- CAPITAL ADEQUACY RATIO (in BASEL II terms) - 12.06%
Net income for the Discount Bank Group for 2009 amounted to NIS 923 million ($244.5 million), compared with NIS 245 million ($64.9 million) for 2008. Return on equity for 2009 reached 9.8%, compared with 2.7% last year.
The main factors influencing the profits of the Group in 2009, compared
with the corresponding period:
- An increase of 15.3% in income from financing activities before
provision for doubtful debts.
- An increase of 20.1% in non-financing income that was affected by a
rise of 5.2% in operating commissions, a rise of NIS 146 million ($38.8
million) in profits from investments in shares and a rise of NIS 242
million ($64.1 million) in other income mainly from profits for
severance pay funds.
- Operating income of affiliated companies amounted to NIS 158 million
($41.9 million), compared with a loss of NIS 70 million ($18.5 million)
for 2008.
Factors partially off-setting the increase in income for 2009:
- An increase of 27.9% in the provision for doubtful debts.
- An increase of 2.6% in non-financing expenses.
- An increase in the provision for taxes on operating income amounting
to NIS 338 million ($89.5 million).
Main developments in the balance sheet for 2009, compared with the
corresponding period:
- Total assets of the Discount Group grew by 3.3%, amounting to NIS
187.8 billion ($49.8 billion), compared with NIS 181.1 billion ($48.2
billion) in 2008.
- Credit granted to the public decreased by 1.7%, amounting to NIS 114.4
billion ($30.3 billion), compared with NIS 116.5 billion
($30.8 billion) in 2008.
- Deposits from the public grew by 1.9%, amounting to NIS 141.8 billion
($37.6 billion), compared with NIS 139.2 billion ($36.9 billion) in
2008.
- Shareholders' equity rose by 13.6%, amounting to NIS 10 billion ($2.6
billion), compared with NIS 8.8 billion ($2.3 billion) in 2008.
Data concerning subsidiaries
2009
Return Capital
on Adequacy
Net Income Equity Ratio
(millions) (%) (%)
Discount Bancorp Inc. $44 6.6 14.9
Mercantile Discount Bank NIS 180 11.1 13.1
Discount Morgage Bank NIS 31 3.4 12.1
Israel Credit Cards (the Bank holds 71.83%
of equity) NIS 249 26.3 22.8
2008
Return Capital
on Adequacy
Net Income Equity Ratio
(millions) (%) (%)
Discount Bancorp Inc. $35 5.5 12.1
Mercantile Discount Bank NIS 148 10.3 12.4
Discount Morgage Bank NIS 28.4 3.2 10.8
Israel Credit Cards (the Bank holds 71.83%
of equity) NIS 279 44.5 21.1
CONDENSED CONSOLIDATED Balance Sheet as at December 31
REPORTED AMOUNTS
2009 2008 2009
US$
in NIS millions millions
Assets
Cash and deposits with banks 24,583 21,554 6,512.1
Securities 36,338 31,535 9,626.0
Securities borrowed or purchased under resale
agreements 336 25 89.0
Credit granted to the public 114,426 *116,456 30,311.5
Credit granted to Governments 1,820 1,491 482.1
Investment in investee companies (consolidated
- affiliated companies) 1,795 1,827 475.5
Buildings and equipment 3,178 3,039 841.8
Other assets 5,341 5,904 1,414.8
Total assets 187,817 181,831 49,752.8
Liabilities and Shareholders' Equity
Deposits from the public 141,825 139,232 37,569.5
Deposits from banks 3,724 4,555 986.5
Deposits from the Government 284 206 75.2
Securities loaned or sold under buy-back
arrangements 7,651 7,194 2,026.8
Subordinated capital notes 11,529 9,373 3,054.1
Other liabilities 12,512 *12,248 3,314.4
Total liabilities 177,525 172,808 47,026.5
Minority interest 298 226 78.9
Shareholders' equity 9,994 8,797 2,647.4
Total liabilities and shareholders' equity 187,817 181,831 49,752.8
* Reclassified.
Note: US Dollar figures have been converted from New Israel Shekels at
the representative rate of exchange on December 31, 2009:
NIS 3.775=US$1.00
CONDENSED CONSOLIDATED Statement of Income For The Year Ended December 31
Reported Amounts
2009 2008 2007
US$
In NIS millions millions
Financing Income
Income from financing activities
before provision for doubtful debts 4,757 4,127 4,225 1,260.1
Provision for doubtful debts 998 780 447 264.4
Income from financing activities
after provision for doubtful debts 3,759 3,347 3,778 995.7
Operating and other Income
Operating commissions 2,625 2,495 2,474 695.4
Net income on investment in shares 197 51 58 52.2
Other income 269 27 119 71.2
Total operating and other income 3,091 2,573 2,651 818.8
Operating and other Expenses
Salaries and related expenses 3,175 3,106 3,030 841.0
Maintenance and depreciation of
buildings and equipment 981 910 819 259.9
Other expenses 1,330 1,332 1,296 352.3
Total operating and other expenses 5,486 5,348 5,145 1,453.2
Operating income before taxes 1,364 572 1,284 361.3
Provision for taxes on operating
income 507 169 566 134.3
Operating income after taxes 857 403 718 227.0
Bank's share in operating income
(loss) net of tax effect
of affiliated companies 158 (70) 45 41.9
Minority interest, after taxes, in
the operating income
of consolidated subsidiaries (72) (78) (56) (19.1)
Net operating income 943 255 707 249.8
Net income (loss) from extraordinary
items, net of taxes (20) (10) 558 (5.3)
Net income 923 245 1,265 244.5
Earnings (losses) per share of NIS
0.1 (in NIS)
Net operating income 0.96 0.26 0.72 0.254
Net income (loss) from extraordinary
items, net of taxes(1) (0.02) (0.01) 0.57 0.005
Net income 0.94 0.25 1.29 0.249
Total number of shares used for the
above computation
(in thousands) 980,639 980,639 980,639
The notes to the financial statements are an integral part thereof.
Statement of Changes in Shareholders Equity
Reported Amounts
Capital reserves
Benefit in Total
respect of share
equity-based capital
Share Share compensation and
capital premium transactions Other reserves
in NIS millions
Balance at
December 31, 2006 658 2,939 8 212 3,817
Changes in 2007:
Net Income for the
year - - - - -
Benefit in respect
of equity based
compensation
transactions - - 27 - 27
Net adjustments
for the
presentation of
available-for-sale
securities at fair
value - - - - -
Net adjustments
for the
presentation of
available-for-sale
securities
reclassified to
the income
statement - - - - -
Related tax effect - - - - -
Financial
statements
translation
adjustments - - - - -
Balance at
December 31, 2007 658 2,939 35 212 3,844
Changes in 2008:
Initial
application of
IFRS in affiliated
companies - - - - -
Initial application of
new accounting
principles in a
subsidiary abroad - - - - -
Net Income for the
year - - - - -
Dividend - - - - -
Benefit in respect
of equity based
compensation
transactions - - 15 - 15
Net adjustments
for the
presentation of
available-for-sale
securities at fair
value - - - - -
Net adjustments
for the
presentation of
available-for-sale
securities
reclassified to
the income
statement - - - - -
Related tax effect - - - - -
Financial
statements
translation
adjustments - - - - -
Balance at
December 31, 2008 658 2,939 50 212 3,859
Changes in 2009:
Net Income for the
year - - - - -
Benefit in respect
of equity based
compensation
transactions - - 2 - 2
Option
expiration(3) - 4 (4) - -
Net adjustments
for the
presentation of
available-for-sale
securities at fair
value - - - - -
Net adjustments
for the
presentation of
available-for-sale
securities
reclassified to
the income
statement - - - - -
Related tax effect - - - - -
Financial
statements
translation
adjustments - - - - -
Balance at
December 31, 2009 658 2,943 48 212 3,861
(table continued)
Other cumulative comprehensive
income (loss)
Adjustment
for
presentation Net
of available gains
for (losses)
sale on Total
securities cash shareh-
at fair Translation flow Retained olders'
value adjustments(1) hedging earnings(2) equity
in NIS millions
Balance at
December 31, 2006 249 (233) (1) 4,133 7,965
Changes in 2007:
Net Income for the
year - - - 1,265 1,265
Benefit in respect
of equity based
compensation
transactions - - - - 27
Net adjustments
for the
presentation of
available-for-sale
securities at fair
value 8 - - - 8
Net adjustments
for the
presentation of
available-for-sale
securities
reclassified to
the income
statement (90) - - - (90)
Related tax effect 30 - - - 30
Financial
statements
translation
adjustments - (1) - - (1)
Balance at
December 31, 2007 197 (234) (1) 5,398 9,204
Changes in 2008:
Initial
application of
IFRS in affiliated
companies - - - 1 1
Initial application of
new accounting
principles in a
subsidiary abroad - - - (4) (4)
Net Income for the
year - - - 245 245
Dividend - - - (250) (250)
Benefit in respect
of equity based
compensation
transactions - - - - 15
Net adjustments
for the
presentation of
available-for-sale
securities at fair
value (873) - - - (873)
Net adjustments
for the
presentation of
available-for-sale
securities
reclassified to
the income
statement 249 - - - 249
Related tax effect 231 - - - 231
Financial
statements
translation
adjustments - (21) - - (21)
Balance at
December 31, 2008 (196) (255) (1) 5,390 8,797
Changes in 2009:
Net Income for the
year - - - 923 923
Benefit in respect
of equity based
compensation
transactions - - - - 2
Option
expiration(3) - - - - -
Net adjustments
for the
presentation of
available-for-sale
securities at fair
value 1,014 - - - 1,014
Net adjustments
for the
presentation of
available-for-sale
securities
reclassified to
the income
statement (556) - - - (556)
Related tax effect (205) - - - (205)
Financial
statements
translation
adjustments - 19 - - 19
Balance at
December 31, 2009 57 (236) (1) 6,313 9,994
Footnotes:
(1) Translation adjustments of foreign operations,
primarily from a consolidated subsidiary Israel
Discount Bank of New York in amount of NIS 231
million, which was treated until December 31, 1994, in
the financial statements of the Bank as autonomous
unit. Accordingly this item included the financing
sources of this investment and the related tax effect
until that date.
(2) Including an amount of NIS 2,704 million that is not available for
distribution.
(3) In respect of 784,511 un-exercised option warrants.
For additional details please contact:
Sarit Weiss
Spokesperson
Tel: +972-3-5145516
Mobile: +972-52-2461151
E-mail: [email protected]
SOURCE Israel Discount Bank Ltd
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