First International Bank of Israel Presents First Quarter 2022 Results
TEL AVIV, Israel, May 24, 2022 /PRNewswire/ -- First International Bank of Israel (TASE: FIBI) one of Israel's major banking groups, today announced its results for the first quarter of 2022, ended March 31, 2022.
Financial Highlights for the First Quarter of 2022
- Net profit of NIS 322 million- Growth of 5.9% compared to the corresponding quarter last year;
- Return on equity of 13%;
- Growth of 5% in credit to the public and growth of 14.7% in the past year;
- Ratio of tier I equity capital to risk components of 10.79%, 1.54% higher than the required regulatory ratio - the highest gap among the banks in Israel; the excess capital enables growth in credit and for ongoing business development;
- The Board of Directors approved a dividend distribution amounting to 50% of net income.
Profitability
Net profit of the First International Bank Group in the first quarter of 2022, amounted to NIS 322 million, as compared to NIS 304 million in the corresponding first quarter of 2021, an increase of 5.9%. Return on equity reached 13%.
Growth and Efficiency
The First International Bank continues its consistent trend of growth, which is demonstrated across all core areas of the Bank's operations.
Revenue in the first quarter increased by 5.3%, compared to the first quarter of last year. Net interest income increased by 11% and commission income increased by 6.4%.
Credit to the public increased by 14.7% compared with that of the first quarter of last year, amounting to a total of NIS 107,342 million. In the first quarter of 2022, credit to the public grew by 5%. The growth in credit was across all fields of operation: compared with that of the first quarter of last year, the middle market business segment grew by 22.5%, the small business segment grew by 16.7%, the large business segment grew by 20.5%, credit to households grew by 6%, and the residential loan segment grew by 14.7%.
The customer's assets portfolio (average) increase by NIS 47 billion, representing growth of 8.5% compared with that of the first quarter of last year and amounted to NIS 596 billion.
No credit loss expense was recorded in the first quarter of 2022. This compares to an credit loss income of NIS 9 million, in the first quarter of last year. The total value of problematic credit declined by 22% compared with that of the first quarter of last year and it declined by 12.4% as compared to that of year-end 2021.
The efficiency ratio amounted to 58.5% in the first quarter of 2022. This demonstrates an improvement compared with 59.0% as of the corresponding period last year.
Operating and other expenses in the first quarter of 2022 amounted to NIS 684 million, a growth of 4.3% as compared to first quarter of last year. This growth is due to the rise in payroll expenses due to timing differences in the components payroll which are of a fluctuating nature, among others impacts. Maintenance and depreciation of building and equipment expenses decreased by 4.7% compared with the first quarter of last year, mainly due to the decrease in the overall scope of real estate assets of the Group, due to efficiency measures taken.
Financial stability
The equity attributed to the shareholders of the Bank grew by 3.7% year-over-year, (representing an absolute growth of NIS 356 million) and amounted to NIS 9,851 million as of March 31, 2022. The Tier I equity capital ratio reached 10.79% with a positive excess of 1.54% over the required regulatory ratio - the highest gap among the banks in Israel. This capital surplus allows for growth in credit and for the continuation of business development activities.
The Bank continued its dividend policy, by which it distributes dividends of up to 50% of net income. Accordingly, the Board of Directors today approved a dividend distribution of NIS 160 million, which comprises 50% of net income for the first quarter of 2022 - the highest among the banks in Israel. This is in addition to dividends of NIS 380 million distributed during the first quarter of the year. The annual divided return as of May 5, 2022, amounted to 7.33%, which is the highest among the banks in Israel.
Innovation
The First International Bank continues to strengthen its connection with its customers, offering unique and competition generating products, such as its Multibank system which shows the customer the details of all their accounts at the different banks, thus encouraging competition. The First International Bank was the first of all banks to introduce a system of this kind.
Additional innovations are: the loyalty program, Beyond, providing for a customer experience in the world of aviation and tourism, the launch of an academic school for capital markets education, which is a professional digital course for the Bank's customers, the Life Plan program which is a holistic digital tool for investment management, and more. The Bank continues to invest in digital and innovation across all fields of its operations, and recently, the innovation and digital group at the Bank was expanded to a full department, which also includes strategy. digital and innovation
Management Comment
Ms. Smadar Barber-Tsadik, CEO of the First International Bank Group, stated: "The results for the first quarter of 2022, are due to continued growth in the current core operations of the Bank across the various fields of activity. We achieved all this while maintaining a high level of capital adequacy enabling growth, as well as financial stability and asset quality. The Bank continues to continuously innovate and develop investment and savings products which are tailored to current market conditions and economic trends."
CONDENSED PRINCIPAL FINANCIAL INFORMATION AND PRINCIPAL EXECUTION INDICES |
||||||
Principal financial ratios |
For the three months |
For the year ended |
||||
2022 |
2021 |
2021 |
||||
in % |
||||||
Execution indices |
||||||
Return on equity attributed to shareholders of the Bank(1) |
13.0% |
*13.1% |
14.7% |
|||
Return on average assets(1) |
0.71% |
*0.72% |
0.82% |
|||
Ratio of equity capital tier 1 |
10.79% |
11.57% |
11.46% |
|||
Leverage ratio |
5.26% |
*5.32% |
5.34% |
|||
Liquidity coverage ratio(2) |
126% |
140% |
128% |
|||
Net stable funding ratio(3) |
137% |
**139% |
||||
Ratio of total income to average assets(1) |
2.6% |
2.6% |
2.6% |
|||
Ratio of interest income, net to average assets (1) |
1.6% |
1.6% |
1.6% |
|||
Ratio of fees to average assets (1) |
0.8% |
0.9% |
0.8% |
|||
Efficiency ratio |
58.5% |
*59.0% |
58.3% |
|||
Credit quality indices |
||||||
Ratio of provision for credit losses to credit to the public |
1.01% |
1.35% |
1.05% |
|||
Ratio of non-accruing debts or in arrears of 90 days or more to credit to the public |
0.59% |
0.73% |
0.62% |
|||
Ratio of provision for credit losses to total non-accruing credit to the public |
175% |
259% |
244% |
|||
Ratio of net write-offs to average total credit to the public (1) |
(0.02%) |
0.03% |
(0.01%) |
|||
Ratio of income for credit losses to average total credit to the public (1) |
- |
(0.04%) |
(0.23%) |
|||
Principal data from the statement of income |
For the three months |
|||
2022 |
2021 |
|||
NIS million |
||||
Net profit attributed to shareholders of the Bank |
322 |
*304 |
||
Interest Income, net |
744 |
670 |
||
Income from credit losses |
- |
9 |
||
Total non-Interest income |
426 |
*441 |
||
Of which: Fees |
384 |
361 |
||
Total operating and other expenses |
684 |
656 |
||
Of which: Salaries and related expenses |
414 |
398 |
||
Dismissal expenses |
2 |
3 |
||
Primary net profit per share of NIS 0.05 par value (NIS) |
3.21 |
*3.03 |
||
Principal data from the balance sheet |
31.3.22 |
31.3.21 |
31.12.21 |
|||
NIS million |
||||||
Total assets |
182,013 |
*172,500 |
180,470 |
|||
of which: Cash and deposits with banks |
53,979 |
59,471 |
57,370 |
|||
Securities |
14,850 |
*14,730 |
15,091 |
|||
Credit to the public, net |
106,254 |
92,321 |
101,164 |
|||
Total liabilities |
171,725 |
*162,598 |
170,033 |
|||
of which: Deposits from the public |
154,038 |
146,600 |
153,447 |
|||
Deposits from banks |
6,504 |
3,326 |
5,144 |
|||
Bonds and subordinated capital notes |
3,675 |
3,716 |
3,356 |
|||
Capital attributed to the shareholders of the Bank |
9,851 |
*9,495 |
10,003 |
Additional data |
31.3.22 |
31.3.21 |
31.12.21 |
|||
Share price (0.01 NIS) |
13,810 |
9,313 |
12,950 |
|||
Dividend per share (0.01 NIS) |
379 |
- |
543 |
* Immaterial adjustment of comparative data.
** Reclassified.
(1) Annualized.
(2) The ratio is computed in respect of the three months ended at the end of the reporting period.
(3) According to instructions of the Bank of Israel the Net stable funding ratio was calculated since 2021, Therefor no comparative data for the three months ended March 31, 2021 is stated.
CONSOLIDATED STATEMENT OF INCOME
|
(NIS million) |
|||||
For the three months |
For the year ended |
|||||
2022 |
2021 |
2021 |
||||
(unaudited) |
(unaudited) |
(audited) |
||||
Interest Income |
871 |
729 |
3,150 |
|||
Interest Expenses |
127 |
59 |
356 |
|||
Interest Income, net |
744 |
670 |
2,794 |
|||
Income from credit losses |
- |
(9) |
(216) |
|||
Net Interest Income after expenses from credit losses |
744 |
679 |
3,010 |
|||
Non- Interest Income |
||||||
Non-Interest Financing income |
34 |
*76 |
303 |
|||
Fees |
384 |
361 |
1,444 |
|||
Other income |
8 |
4 |
9 |
|||
Total non- Interest income |
426 |
441 |
1,756 |
|||
Operating and other expenses |
||||||
Salaries and related expenses |
414 |
398 |
1,601 |
|||
Maintenance and depreciation of premises and equipment |
81 |
85 |
340 |
|||
Amortizations and impairment of intangible assets |
27 |
26 |
105 |
|||
Other expenses |
162 |
147 |
606 |
|||
Total operating and other expenses |
684 |
656 |
2,652 |
|||
Profit before taxes |
486 |
464 |
2,114 |
|||
Provision for taxes on profit |
169 |
*161 |
728 |
|||
Profit after taxes |
317 |
303 |
1,386 |
|||
The bank's share in profit (loss) of equity-basis investee, after taxes |
17 |
13 |
69 |
|||
Net profit: |
||||||
Before attribution to non–controlling interests |
334 |
316 |
1,455 |
|||
Attributed to non–controlling interests |
(12) |
(12) |
(50) |
|||
Attributed to shareholders of the Bank |
322 |
304 |
1,405 |
|||
NIS |
||||||
Primary profit per share attributed to the shareholders of the Bank |
||||||
Net profit per share of NIS 0.05 par value |
3.21 |
3.03 |
14.00 |
|||
* Immaterial adjustment of comparative data.
STATEMENT OF COMPREHENSIVE INCOME
|
(NIS million)
|
|||||
For the three months |
For the year ended |
|||||
2022 |
2021 |
2021 |
||||
(unaudited) |
(unaudited) |
(audited) |
||||
Net profit before attribution to non–controlling interests |
334 |
*316 |
1,455 |
|||
Net profit attributed to non–controlling interests |
(12) |
(12) |
(50) |
|||
Net profit attributed to the shareholders of the Bank |
322 |
304 |
1,405 |
|||
Other comprehensive income (loss) before taxes: |
||||||
Adjustments of available for sale bonds to fair value, net |
(216) |
11 |
27 |
|||
Adjustments of liabilities in respect of employee benefits(1) |
131 |
66 |
(24) |
|||
Other comprehensive income (loss) before taxes |
(85) |
77 |
3 |
|||
Related tax effect |
30 |
(26) |
(1) |
|||
Other comprehensive income (loss) before attribution to non–controlling interests, after taxes |
(55) |
51 |
2 |
|||
Less other comprehensive income (loss) attributed to non–controlling interests |
(5) |
1 |
- |
|||
Other comprehensive income (loss) attributed to the shareholders of the Bank, after taxes |
(50) |
50 |
2 |
|||
Comprehensive income before attribution to non–controlling interests |
279 |
367 |
1,457 |
|||
Comprehensive income attributed to non–controlling interests |
(7) |
(13) |
(50) |
|||
Comprehensive income attributed to the shareholders of the Bank |
272 |
354 |
1,407 |
|||
* Immaterial adjustment of comparative data.
(1) Mostly reflects adjustments in respect of actuarial assessments as of the end of the period regarding defined benefits pension plans, of amounts recorded in the past in other comprehensive income.
CONSOLIDATED BALANCE SHEET
|
(NIS million)
|
|||||
31.3.22 |
31.3.21 |
31.12.21 |
||||
(unaudited) |
(unaudited) |
(audited) |
||||
Assets |
||||||
Cash and deposits with banks |
53,979 |
59,471 |
57,370 |
|||
Securities |
14,850 |
*14,730 |
15,091 |
|||
Securities which were borrowed |
322 |
244 |
845 |
|||
Credit to the public |
107,342 |
93,581 |
102,240 |
|||
Provision for Credit losses |
(1,088) |
(1,260) |
(1,076) |
|||
Credit to the public, net |
106,254 |
92,321 |
101,164 |
|||
Credit to the government |
843 |
659 |
811 |
|||
Investments in investee company |
740 |
648 |
713 |
|||
Premises and equipment |
912 |
954 |
931 |
|||
Intangible assets |
297 |
265 |
300 |
|||
Assets in respect of derivative instruments |
2,332 |
1,603 |
1,709 |
|||
Other assets(2) |
1,484 |
1,605 |
1,536 |
|||
Total assets |
182,013 |
172,500 |
180,470 |
|||
Liabilities and Shareholders' Equity |
||||||
Deposits from the public |
154,038 |
146,600 |
153,447 |
|||
Deposits from banks |
6,504 |
3,326 |
5,144 |
|||
Deposits from the Government |
476 |
694 |
960 |
|||
Bonds and subordinated capital notes |
3,675 |
3,716 |
3,356 |
|||
Liabilities in respect of derivative instruments |
2,360 |
1,554 |
2,038 |
|||
Other liabilities(1)(3) |
4,672 |
*6,708 |
5,088 |
|||
Total liabilities |
171,725 |
162,598 |
170,033 |
|||
Capital attributed to the shareholders of the Bank |
9,851 |
*9,495 |
10,003 |
|||
Non–controlling interests |
437 |
407 |
434 |
|||
Total equity |
10,288 |
9,902 |
10,437 |
|||
Total liabilities and shareholders' equity |
182,013 |
172,500 |
180,470 |
|||
* Immaterial adjustment of comparative data.
(1) Of which: provision for credit losses in respect of off-balance sheet credit instruments in the amount of NIS 134 million and NIS 88 million and NIS 79 million at 31.3.22, 31.3.21 and 31.12.21, respectively.
(2) Of which: other assets measured at fair value in the amount of NIS 261 million and NIS 375 million and NIS 333 million at 31.3.22, 31.3.21 and 31.12.21, respectively.
(3) Of which: other liabilities measured at fair value in the amount of NIS 435 million and NIS 375 million and NIS 641 million at 31.3.22, 31.3.21 and 31.12.21, respectively.
STATEMENT OF CHANGES IN EQUITY
|
(NIS million) |
||||||||||||
For the three months ended March 31, 2022 (unaudited) |
|||||||||||||
Share capital and premium (1) |
Accumulated other comprehensive loss
|
Retained earnings (2) |
Total |
Non- controlling interests |
Total equity |
||||||||
Balance as at December 31, 2021 (audited) |
927 |
(181) |
9,257 |
10,003 |
434 |
10,437 |
|||||||
Adjustment of the opening balance, net of tax, due to the |
- |
- |
(44) |
(44) |
(4) |
(48) |
|||||||
Adjusted balance at January 1, 2022, following initial implementation |
927 |
(181) |
9,213 |
9,959 |
430 |
10,389 |
|||||||
Net profit for the period |
- |
- |
322 |
322 |
12 |
334 |
|||||||
Dividend |
- |
- |
(380) |
(380) |
- |
(380) |
|||||||
Other comprehensive loss, net after tax effect |
- |
(50) |
- |
(50) |
(5) |
(55) |
|||||||
Balance as at March 31, 2022 |
927 |
(231) |
9,155 |
9,851 |
437 |
10,288 |
|||||||
For the three months ended March 31, 2021 (unaudited) |
|||||||||||||
Share capital and premium (1) |
Accumulated other comprehensive income (loss) |
Retained earnings (2) |
Total |
Non- controlling interests |
Total equity |
||||||||
Balance as at December 31, 2020 (audited) |
927 |
(183) |
8,397 |
9,141 |
394 |
9,535 |
|||||||
Net profit for the period |
- |
- |
**304 |
304 |
12 |
316 |
|||||||
Other comprehensive income, net after tax effect |
- |
50 |
- |
50 |
1 |
51 |
|||||||
Balance as at March 31, 2021 |
927 |
(133) |
8,701 |
9,495 |
407 |
9,902 |
|||||||
For the year ended December 31, 2021 (audited) |
|||||||||||||
Share capital and premium (1) |
Accumulated other comprehensive income (loss) |
Retained earnings (2) |
Total |
Non- controlling interests |
Total equity |
||||||||
Balance as at December 31, 2020 (audited) |
927 |
(183) |
8,397 |
9,141 |
394 |
9,535 |
|||||||
Net profit for the year |
- |
- |
1,405 |
1,405 |
50 |
1,455 |
|||||||
Dividend |
- |
- |
(545) |
(545) |
(10) |
(555) |
|||||||
Other comprehensive income, after tax effect |
- |
2 |
- |
2 |
- |
2 |
|||||||
Balance as at December 31, 2021 |
927 |
(181) |
9,257 |
10,003 |
434 |
10,437 |
|||||||
* Cumulative effect of the initial implementation of US accounting principles in the matter of financial instruments – credit losses (ASC-326).
** Immaterial adjustment of comparative data.
(1) Including share premium of NIS 313 million (as from 1992 onwards).
(2) Including an amount of NIS 2,391 million which cannot be distributed as dividend.
Contact:
Dafna Zucker
First International Bank of Israel
E-mail: [email protected]
Tel: +972-3-519-6224
Ehud Helft
GK Investor & Public Relations
E-mail: [email protected]
Tel: +1-646-201-924
SOURCE First International Bank of Israel
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