News Column

Mizrahi Tefahot profit up 23% in Q2

August 13, 2014

By Yossi Nissan, Globes, Tel Aviv, Israel

Aug. 13--Mizrahi Tefahot Bank (TASE:MZTF) reported a major rise in profit for the second quarter of 2014. Net profit was NIS 302 million, up 23.3% from NIS 245 million in the corresponding quarter of 2013.

Return on equity in the second quarter was 12.3%. Financing revenue from current operations in the second quarter was NIS 821 million, 5% up from NIS 782 million in the corresponding quarter of last year.

Mizrahi Tefahot President Eldad Fresher said, "Net profit amounting to NIS 302 million in the second quarter of 2014 means a record quarter for us, reflecting the fact that Mizrahi-Tefahot continued to grow its range of operating segments, with consistent, impressive growth in its customer base as well as in branch presence and service-oriented staff -- which is opposed to the current trend in the banking system. The Bank's reported return on equity for the second quarter, at 12.3%, is also a notable positive, given the expansion of the capital base and the early achievement of Tier I capital ratio of 9.0% in Basel III terms, and given the continued lower interest rate and implications of regulatory measures on Bank operations in various areas."

He added, "Despite the strong competition and uncertainty in the banking sector in recent months, due to Government proposals such as 0% VAT and target price tenders, Mizrahi Tefahot continued to maintain its leadership position in the mortgage market. In the first half of 2014, Bank performance in housing loans was at 36%. This success, which is due to the professional skills and expertise of our mortgage bankers and the resulting brand power of Tefahot, achieved concurrently with maintaining a conservative underwriting policy, continued reduction of LTV ratio and consistent improvement of the loan repayment to income ratio, along with strict review of the portfolio risk component, even under scenarios of higher interest rates and deterioration in the economy."


(c)2014 the Globes (Tel Aviv, Israel)

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Source: Globes (Tel Aviv)

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