TEL-AVIV, Israel, August 28, 2013 /PRNewswire/ --

Q2 Net Income - NIS 263 million compared to NIS 165 million in Q2/2012, an increase of 59.4%

Q2 Net Return on Equity attributable to the Bank's Shareholders - 9.0% compared to 6.1% in Q2/2012

H1/2013 Net Income - NIS 526 million compared to NIS 412 million in H1/2012, an increase of 27.7%

H1/2013 Net Return on Equity attributable to the Bank's Shareholders - 9.0% compared to 7.7% in H1/2012, and compared to 7.1% for the whole of 2012.

Ratio of Capital to Risk Assets - 14.4%. Core Capital Ratio - 9.1%

 

Israel Discount Bank Limited (TASE: DSCT), one of Israel's leading banks, today reported its Q2/2013 financial results.

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The Discount Group's Net Income in H1/2013 totaled NIS 526 million, compared to NIS 412 million in H1/2012, an increase of 27.7%.

The Return on Equity attributable to the Bank's Shareholders' in H1/2013 was 9.0%, compared to 7.7% in H1/2012.

Main factors affecting the Group's business results in H1/2013, compared to H1/2012:

  • A decrease of NIS 166 million in net interest income (7.4%).
  • An increase of NIS 45 million in expenses for credit losses (18.7%).
  • An increase of NIS 206 million in non-interest income (12.8%), affected by an increase of NIS 227 million in non-interest financing income (114.1%), an increase of NIS 4 million in commissions (0.3%) and a decrease of NIS 25 million in other income (30.5%).
  • An increase of NIS 23 million in operating and other expenses (0.8%), affected mainly by an increase of NIS 32 million in salaries and related expenses (1.8%).
  • A provision for income taxes of NIS 207 million in H1/2013, compared to NIS 222 million in H1/2012.
  • An increase of NIS 116 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. The income in H1/2012 is after the provision of NIS 73 million, net, for impairment of the investment in the shares of First International Bank.

Main Balance Sheet Developments as of June 30, 2013:

  • Total Assets decreased by 1.9%, amounting to NIS 197.2 billion, compared to NIS 201.0 billion at the end of 2012.
  • Net Credit granted to the public decreased by 2.1%, amounting to NIS 115.1 billion, compared to NIS 117.6 billion at the end of 2012.
  • Securities increased by 6.2%, amounting to NIS 48.8 billion, compared to NIS 46.0 billion at the end of 2012.
  • Deposits from the public decreased by 1.6%, amounting to NIS 149.5 billion, compared to NIS 151.9 billion at the end of 2012.
  • Equity attributable to the Bank's Shareholders increased by 1.3%, amounting to NIS 12.0 billion, compared to NIS 11.8 billion at the end of 2012.
  • Total Equity increased by 1.3%, amounting to NIS 12.3 billion, compared to NIS 12.1 billion at the end of 2012.
    DATA REGARDING SUBSIDIARIES
    H1/2013
                                                                         Return  Capital
                                                                 Net       on    Adequacy
                                                                Income   Equity   Ratio

    Discount Bancorp Inc.                                       USD 18 M   4.4%  *15.5%
    Mercantile Discount Bank                                   NIS 101 M  11.0%   14.4%
    Israel Credit Cards (ICC) (the Bank holds                  NIS  67 M  12.6%  16.7 %
    71.8% of the equity)
    * In conformity with mandatory rules in the U.S.A.

    H1/2012
                                                                         Return  Capital
                                                                 Net       on    Adequacy
                                                               income    Equity   Ratio

    Discount Bancorp Inc.                                       USD 22 M   5.5%  *15.5%
    Mercantile Discount Bank                                    NIS 84 M   9.8%   14.2%
    Israel Credit Cards (ICC) (the Bank holds
    71.8% of the equity)                                       NIS 108 M  19.6%   17.0%
    * In conformity with mandatory rules in the U.S.A.

    2012
                                                                         Return  Capital
                                                                   Net     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)

                                        Second Quarter            Half Year       Annual
                                         2013  2012  % change  2013   2012  % change  2012
    Net interest income                 1,041 1,153     (9.7) 2,085  2,251    (7.4)  4,459
    Expenses for credit losses            141   118     19.5    286    241    18.7     726
    Total non-interest income             924   744     24.2  1,819  1,613    12.8   3,257
    Total operating and other expenses  1,504 1,453      3.5  2,976  2,953     0.8   5,826
    Income before taxes                   320   326     (1.8)   642    670    (4.2)  1,164
    Income after taxes                    231   219      5.5    435    448    (2.9)    757
    Net income attributable to the
    Bank's shareholders                   263   165     59.4    526    412    27.7     802
    Net return on equity attributable
    to the Bank's shareholders in %       9.0   6.1             9.0    7.7             7.1


    DEVELOPMENT OF ASSETS AND LIABILITIES (IN NIS MILLIONS)

                                           June 30              December 31
                                    2013     2012   % change   2012   % change
    Total Assets                   197,207  200,642    (1.7)  201,012    (1.9)
    Net Credit granted to the
    public                         115,121  119,412    (3.6)  117,611    (2.1)
    Securities                      48,832   45,455     7.4    46,001     6.2
    Deposits from the public       149,502  150,862    (0.9)  151,935    (1.6)
    Equity attributable to the
    Bank's shareholders             11,991   11,307     6.0    11,838     1.3
    Total Equity                    12,291   11,633     5.7    12,134     1.3


    PRINCIPAL FINANCIAL RATIOS (IN PERCENTAGES)
                                                  30.6.13   30.6.12   31.12.12

    Total Equity to Total Assets                      6.2       5.8        6.0
    Ratio of capital to risk assets                  14.4      14.1       14.3
    Core Capital ratio                                9.1       8.3        8.6
    Expenses for credit losses to average
    balance of credit granted to the public          0.48      0.41       0.61
    Net Credit granted to the public, to total
    assets                                           58.4      59.5       58.5
    Net Credit granted to the public, to
    deposits from the public                         77.0      79.2       77.4
    Deposits from the public to total assets         75.8      75.2       75.6
    Total Non-Interest Income to Operating
    Expenses                                         61.1      54.6       55.9
    Operating Expenses to Total Income               76.2      76.4       75.5
    Adjusted Return on Risk Assets                   10.1       8.3        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 
spokes@discountbank.net

Copyright 2013 PR Newswire

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