Israel Discount Bank Announces Q4 and Full Year 2012 Financial Results
TEL AVIV, Israel, March 20, 2013 /PRNewswire/ --
Net Income - NIS 802 million compared to NIS 847 million in 2011, a decrease of 5.3%
Excluding the provision for impairment of the Bank's investment in the shares of the First International Bank, the Net Income for 2012 would have amounted to NIS 875 million, an increase of 3.3% compared to 2011.
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Net Return on Equity attributable to the Bank's shareholders - 7.1% compared to 8.2% in 2011
Excluding the provision for impairment of the Bank's investment in the shares of the First International Bank, the Net Return on Equity for 2012 would have reached 7.8%.
Fourth Quarter Net Income - NIS 169 million compared to NIS 219 million in the fourth quarter of 2011, a decrease of 22.8%
Fourth Quarter Net Return on Equity attributable to the Bank's shareholders - 5.9% compared to 8.6% in the fourth quarter of 2011
Ratio of Capital to Risk Assets - 14.3%, Core Capital Ratio - 8.6%
Israel Discount Bank Limited (TASE:DSCT), one of Israel's leading banks, today reported its Q4 and Full Year 2012 financial results.
The Discount Group's Net Income for 2012 totaled NIS 802 million, compared to NIS 847 million in 2011.
The Net Return on Equity attributable to the Bank's Shareholders reached 7.1%, compared to 8.2% in 2011.
Main factors affecting the Group's business results in 2012, compared to 2011:
- A decrease of NIS 158 million in net interest income (3.4%).
- A decrease of NIS 52 million in expenses for credit losses (6.7%).
- An increase of NIS 320 million in non-interest income (10.9%), affected mainly by an increase of NIS 254 million in non-interest financing income (259.2%), an increase of NIS 15 million in commissions (0.6%) and an increase in other income, affected mainly by an increase in severance pay fund profits of NIS 137 million. It should be noted that in 2011, non-interest financing income included NIS 48 million from the sale of the index-linked notes operation and other income included a receipt of NIS 67 million from an insurance company.
- A decrease of NIS 19 million in operating and other expenses (0.3%), affected mainly by a decrease of NIS 22 million in salaries and related expenses (0.6%), an increase of NIS 44 million in maintenance and depreciation of buildings and equipment (3.8%) and a decrease of NIS 40 million in other expenses (3.3%).
- A provision for income taxes of NIS 407 million in 2012, compared to NIS 114 million in 2011.
- An increase of NIS 3 million in the Bank's share in the income of affiliated companies, net of tax effect. The income for 2012 is net of a provision for impairment of the Bank's investment in the shares of the First International Bank in a net amount of NIS 73 million.
Main Balance Sheet Developments as of December 31, 2012:
- Total Assets decreased by 0.8%, amounting to NIS 200.9 billion, compared to NIS 202.5 billion at the end of 2011.
- Net Credit granted to the public, increased by 1.1%, amounting to NIS 117.6 billion, compared to NIS 116.4 billion at the end of 2011.
- Deposits from the public decreased by 0.9%, amounting to NIS 151.9 billion, compared to NIS 153.4 billion at the end of 2011.
- The Equity attributable to the Bank's Shareholders increased by 10.6%, amounting to NIS 11.8 billion, compared to NIS 10.7 billion at the end of 2011.
- Total Equity increased by 10.1%, amounting to NIS 12.1 billion, compared to NIS 11.0 billion at the end of 2011.
Data Regarding Subsidiaries
2012
Return on
Equity
Attributable Capital
Net to Adequacy
Income Shareholders 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
71.83% of the equity) NIS 209 M 17.8% 16.8%
* In conformity with U.S. Reporting Standards
2011
Return on
Equity
Attributable Capital
Net to Adequacy
income Shareholders Ratio
Discount Bancorp Inc. USD 46 M 5.9% *16.5%
Mercantile Discount Bank NIS 162 M 9.6% 13.2%
Israel Credit Cards (ICC) (the Bank holds
71.83% of the equity) NIS 229 M 20.6% 16.7%
* In conformity with U.S. Reporting Standards
Discount Group - Principal Data from the CONSOLIDATED
Financial Statements
Income and Profitability (in NIS millions)
% Q4 Q4 %
2012 2011 change 2012 2011 change
Net interest income 4,459 4,617 (3.4) 1,066 1,108 (3.8)
Expenses for credit losses 726 778 (6.7) 252 252 -
Total non-interest income 3,257 2,937 10.9 784 688 14.0
Total operating and other
expenses 5,826 5,845 (0.3) 1,379 1,464 (5.8)
Income before taxes 1,164 931 25.0 219 80 173.8
Income after taxes 757 817 (7.3) 112 212 (47.2)
Net income attributable to the
Bank's shareholders 802 847 (5.3) 169 219 (22.8)
Net return on equity
attributable to the Bank's
shareholders in % 7.1 8.2 5.9 8.6
Net return on equity
attributable to the Bank's
shareholders in % - excluding
the provision for impairment of
the Bank's investment in the
shares of the First
International Bank 7.8 8.2 5.9 8.6
Development of Assets and Liabilities (in NIS millions)
December 31 December 31 %
2012 2011 change
Total Assets 200,880 202,472 (0.8)
Net Credit granted to the
public 117,611 116,383 1.1
Securities 46,001 42,898 7.2
Deposits from the public 151,935 153,368 (0.9)
Equity attributable to the
Bank's shareholders 11,838 10,702 10.6
Total Equity 12,134 11,021 10.1
Principal Financial Ratios (in percentages)
2012 2011
Total Equity to Total Assets 6.0 5.4
Ratio of capital to risk assets 14.3 14.1
Core Capital ratio 8.6 8.1
Expenses for credit losses to average balance
of credit granted to the public 0.61 0.65
Net Credit granted to the public, to total
assets 58.5 57.5
Net Credit granted to the public, to deposits
from the public 77.4 75.9
Deposits from the public to total assets 75.6 75.7
Operating Income to Operating Expenses 55.9 50.2
Operating Expenses to Total Income 75.5 77.4
Adjusted Return on Risk Assets 7.8 8.1
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
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
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