Israel Discount Bank Announces Financial Results For First Nine Months Of 2013

- Q3 Net Income - NIS 276 million compared to NIS 221 million in Q3/2012, an increase of 24.9%

- Q3 Net Return on Equity attributable to the Bank's Shareholders – 9.5% compared to 7.9% in

Q3/2012

- Net Income for the first nine months of 2013 – NIS 802 million compared to NIS 633 million for the first nine months of 2012, an increase of 26.7%.

- Net Return on Equity attributable to the Bank's Shareholders for the first nine months of 2013 – 9.0% compared to 7.7% for the first nine months of 2012, and compared to 7.1% for the whole of 2012.

- Ratio of Capital to Risk Assets – 14.4%. Core Capital Ratio – 9.3%

TEL-AVIV, Israel, Nov. 27, 2013 /PRNewswire/ -- Israel Discount Bank Limited (TASE:DSCT), one of Israel's leading banks, today reported its Q3/2013 financial results.

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

The Discount Group's Net Income for the first nine months of 2013 totaled NIS 802 million, compared to NIS 633 million for the first nine months of 2012, an increase of 26.7%.

The Return on Equity attributable to the Bank's Shareholders' for the first nine months of 2013 was 9.0%, compared to 7.7% for the first nine months of 2012.

Main factors affecting the Group's business results for the first nine months of 2013, compared to the first nine months of 2012:

• A decrease of NIS 214 million in net interest income (6.3%).
• A decrease of NIS 17 million in expenses for credit losses (3.6%).
• An increase of NIS 185 million in non-interest income (7.5%), affected by an increase of NIS 223 million in non-interest financing income (76.1%), a decrease of NIS 5 million in commissions (0.2%) and a decrease of NIS 33 million in other income (21.3%).
• An increase of NIS 14 million in operating and other expenses (0.3%), affected mainly by an increase of NIS 39 million in salaries and related expenses (1.5%), which was partially offset by a decrease of NIS 20 million in other expenses (2.3%).
• A provision for income taxes of NIS 254 million in the first nine months of 2013, compared to NIS 300 million in the first nine months of 2012.
• An increase of NIS 133 million in the Bank's share in the income of affiliated companies, net of tax effect, which was affected by a revision of NIS 45 million to the computation of the tax provision on the Bank's share of First International Bank's income. The income in the first nine months of 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 September 30, 2013:

• Total Assets decreased by 0.5%, amounting to NIS 200 billion, compared to NIS 201 billion at the end of 2012.
• Net Credit granted to the public decreased by 0.9%, amounting to NIS 116.5 billion, compared to NIS 117.6 billion at the end of 2012.
• Deposits from the public increased by 0.1%, amounting to NIS 152.1 billion, compared to NIS 151.9 billion at the end of 2012.
• Equity attributable to the Bank's Shareholders increased by 3.3%, amounting to NIS 12.2 billion, compared to NIS 11.8 billion at the end of 2012.
• Total Equity increased by 3.3%, amounting to NIS 12.5 billion, compared to NIS 12.1 billion at the end of 2012.

DATA REGARDING SUBSIDIARIES

FIRST NINE MONTHS OF 2013
	Net Income	Return on Equity	Capital Adequacy Ratio
Discount Bancorp Inc.	USD 29 M	4.7%	*14.8%
Mercantile Discount Bank	NIS 136 M	9.8%	14.6%
Israel Credit Cards (ICC) (the Bank holds 71.8% of the equity)	NIS 104 M	13.0%	16.8 %
* In conformity with mandatory rules in the U.S.A.

FIRST NINE MONTHS OF 2012
	Net income	Return on Equity	Capital Adequacy Ratio
Discount Bancorp Inc.	USD 36 M	5.9%	*15.2%
Mercantile Discount Bank	NIS 128 M	9.8%	14.2%
Israel Credit Cards (ICC) (the Bank holds 71.8% of the equity)	NIS 162 M	19.1%	16.9%
* In conformity with mandatory rules in the U.S.A.

2012
	Net Income	Return on Equity	Capital Adequacy 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)
	Third Quarter			Nine Months			Annual
	2013	2012	% change	2013	2012	% change	2012
Net interest income	1,094	1,142	(4.2)	3,179	3,393	(6.3)	4,459
Expenses for credit losses	171	233	(26.6)	457	474	(3.6)	726
Total non-interest income	839	860	(2.4)	2,658	2,473	7.5	3,257
Total operating and other expenses	1,485	1,494	(0.6)	4,461	4,447	0.3	5,826
Income before taxes	277	275	0.7	919	945	(2.8)	1,164
Income after taxes	230	197	16.8	665	645	3.1	757
Net income attributable to the Bank's shareholders	276	221	24.9	802	633	26.7	802
Net return on equity attributable to the Bank's shareholders in %	9.5	7.9		9.0	7.7		7.1

DEVELOPMENT OF ASSETS AND LIABILITIES (IN NIS MILLIONS)
	September 30			December 31
	2013	2012	% change	2012	% change
Total Assets	200,025	205,240	(2.5)	201,012	(0.5)
Net Credit granted to the public	116,498	119,040	(2.1)	117,611	(0.9)
Securities	47,124	45,334	3.9	46,001	2.4
Deposits from the public	152,111	154,688	(1.7)	151,935	0.1
Equity attributable to the Bank's shareholders	12,228	11,613	5.3	11,838	3.3
Total Equity	12,531	11,943	4.9	12,134	3.3

PRINCIPAL FINANCIAL RATIOS (IN PERCENTAGES)
	September 30		December 31
	2013	2012	2012
Total Equity to Total Assets	6.3	5.8	6.0
Ratio of capital to risk assets	14.4	14.2	14.3
Core Capital ratio	9.3	8.4	8.6
Expenses for credit losses to average balance of credit granted to the public	0.51	0.53	0.61
Net Credit granted to the public, to total assets	58.2	58.0	58.5
Net Credit granted to the public, to deposits from the public	76.6	77.0	77.4
Deposits from the public to total assets	76.0	75.4	75.6
Total Non-Interest Income to Operating Expenses	59.6	55.6	55.9
Operating Expenses to Total Income	76.4	75.8	75.5
Adjusted Return on Risk Assets	10.2	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: [phone]
Mobile: [phone]
www.discountbank.co.il

For additional details please contact:
Sarit Weiss
Spokesperson
Tel: [phone]
Mobile: [phone]
[e-mail]

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