Israel Discount Bank Announces Q1/2013 Financial Results

TEL-AVIV, Israel, May 30, 2013 /PRNewswire/ --



Q1 Net Income - NIS 263 million compared to NIS 247 million in Q1/2012, an increase of 6.5%

Q1 Net Return on Equity attributable to the Bank's Shareholders - 9.2% compared to 9.5% in Q1/2012

Ratio of Capital to Risk Assets - 14.2%.  Core Capital Ratio - 8.9%

Israel Discount Bank Limited (TASE:DSCT), one of Israel's leading banks, today reported its Q1/2013 financial results.

The Discount Group's Net Income in the first quarter of 2013 totaled NIS 263 million, compared to NIS 247 million in the first quarter of 2012, an increase of 6.5%.

The Return on Equity attributable to the Bank's Shareholders' in the first quarter of 2013 was 9.2%, compared to 9.5% in the first quarter of 2012.

     (Logo: http://photos.prnewswire.com/prnh/20120820/554838 )

Main factors affecting the Group's business results in Q1/2013, compared to Q1/2012:

-    A decrease of NIS 54 million in net interest income (4.9%).

-    An increase of NIS 22 million in expenses for credit losses (17.9%).

-    An increase of NIS 26 million in non-interest income (3.0%), affected by an increase of NIS 28 million in non-interest financing income (17.3%), an increase of NIS 9 million in commissions (1.4%) and a decrease of NIS 11 million in other income (22.9%).

-    A decrease of NIS 28 million in operating and other expenses (1.9%), affected mainly by a decrease of NIS 24 million in salaries and related expenses (2.7%).

-    A provision for income taxes of NIS 118 million in Q1/2013, compared to NIS 115 million in Q1/2012.

-    An increase of NIS 36 million in the Bank's share in the income of affiliated companies, net of tax effect, which was affected by a revision to the computation of the tax provision on the Bank's share of First International Bank's income.

Main Balance Sheet Developments as of March 31, 2013:

-    Total Assets decreased by 0.4%, amounting to NIS 200.1 billion, compared to NIS 201.0 billion at the end of 2012.

-    Net Credit to the public decreased by 1.2%, amounting to NIS 116.2 billion, compared to NIS 117.6 billion at the end of 2012.

-    Securities increased by 4.6%, amounting to NIS 48.1 billion, compared to NIS 46.0 billion at the end of 2012.

-    Deposits from the public amounted to NIS 151.9 billion, the same as at the end of 2012.

-    Equity attributable to the Bank's Shareholders increased by 0.9%, amounting to NIS 11.9 billion, compared to NIS 11.8 billion at the end of 2012.

-    Total Equity increased by 1.0%, amounting to NIS 12.3 billion, compared to NIS 12.1 billion at the end of 2012.

Data Regarding Subsidiaries

    Q1/2013
                                                                   Capital
                                               Net      Return on  Adequacy
                                               Income   Equity     Ratio
    Discount Bancorp Inc.                      USD 10 M      5.1%   *15.6%
    Mercantile Discount Bank                   NIS 53 M     11.6%    14.6%
    Israel Credit Cards (ICC) (the Bank holds
    71.8% of the equity)                       NIS 33 M     12.9%    16.8%

* In conformity with mandatory rules in the U.S.A.

    Q1/2012
                                                                   Capital
                                               Net      Return on  Adequacy
                                               income   Equity     Ratio
    Discount Bancorp Inc.                      USD 7 M       3.7%   *15.7%
    Mercantile Discount Bank                   NIS 39 M      9.1%    14.0%
    Israel Credit Cards (ICC) (the Bank holds
    71.8% of the equity)                       NIS 50 M     18.5%    17.3%

* In conformity with mandatory rules in the U.S.A.

    2012
                                                                    Capital
                                               Net       Return on  Adequacy
                                               Income    Equity     Ratio
    Discount Bancorp Inc.                      USD 43 M       5.3%   *15.4%
    Mercantile Discount Bank                   NIS 191 M     10.8%    15.0%
    Israel Credit Cards (ICC) (the Bank holds
    71.8% of the equity)                       NIS 209 M     17.8%    16.8%

* In conformity with mandatory rules in the U.S.A.

Discount Group - Principal Data from the CONSOLIDATED
Financial Statements

    Income and Profitability (in NIS millions)
                                      For the three months
                                        ended March 31       Annual
                                    2013    2012   % change  2012
    Net interest income               1,044  1,098    (4.9)  4,459
    Expenses for credit losses          145    123     17.9    726
    Total non-interest income           895    869      3.0  3,257
    Total operating and other
    expenses                          1,472  1,500    (1.9)  5,826
    Income before taxes                 322    344    (6.4)  1,164
    Income after taxes                  204    229   (10.9)    757
    Net income attributable to the
    Bank's shareholders                 263    247      6.5    802
    Net return on equity
    attributable to the Bank's
    shareholders in %                   9.2    9.5

    Development of Assets and Liabilities (in NIS millions)
                                            March 31           December 31
                                    2013    2012    % change  2012    % change
    Total Assets                    200,135 199,315      0.4  201,012    (0.4)
    Net Credit to the
    public                          116,155 115,080      0.9  117,611    (1.2)
    Securities                       48,140  45,240      6.4   46,001      4.6
    Deposits from the public        151,933 149,811      1.4  151,935        -
    Equity attributable to the
    Bank's shareholders              11,948  10,920      9.4   11,838      0.9
    Total Equity                     12,253  11,244      9.0   12,134      1.0

    Principal Financial Ratios (in percentages)
                                                      31.3.13 31.3.12 31.12.12

    Total Equity to Total Assets                          6.1     5.6      6.0
    Ratio of capital to risk assets                      14.2    14.1     14.3
    Core Capital ratio                                    8.9     8.2      8.6
    Expenses for credit losses to average balance of
    credit to the public                                 0.49    0.42     0.61
    Net Credit to the public, to total assets            58.0    57.7     58.5
    Net Credit to the public, to deposits
    from the public                                      76.5    76.8     77.4
    Deposits from the public to total assets             75.9    75.2     75.6
    Total Non-Interest Income to Operating Expenses      60.8    57.9     55.9
    Operating Expenses to Total Income                   75.9    76.3     75.5
    Adjusted Return on Risk Assets                       10.0    10.1      7.8

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 DSCT.

Israel Discount Bank Ltd.

Head Office:
Discount Tower
23 Yehuda Halevi Street, Tel Aviv, Israel
Tel: 972-3-5145555
Mobile: 972-52-2461151
http://www.discountbank.co.il

For additional details please contact:

Sarit Weiss
Spokesperson
Tel: 972-3-5145516
Mobile: 972-52-2461151
[email protected]

SOURCE Israel Discount Bank Ltd