Israel Discount Bank Announces Q2/2013 Financial Results

TEL-AVIV, Israel, Aug. 28, 2013 /PRNewswire/ -- 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
	Net Income	Return on Equity	Capital Adequacy 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 71.8% of the equity)	NIS 67 M	12.6%	16.7 %
* In conformity with mandatory rules in the U.S.A.
H1/2012
	Net income	Return on Equity	Capital Adequacy 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
	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)
	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: [phone]
Mobile: [phone]
www.discountbank.co.il

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

 

SOURCE Israel Discount Bank Ltd

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