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