Israel Discount Bank Limited Class A · TASE:DSCT
Israel Discount Bank Limited Class A — FY2024 Earnings Presentation
20 slides from Israel Discount Bank Limited Class A's earnings presentation, Mar 11, 2025
Slide 1: 2024 Review: Financial Highlights
2024 REVIEW Financial Highlights Investor Relations March 11, 2025
Slide 2: Disclaimer
Disclaimer: This document has been prepared by Israel Discount Bank Ltd. (the “Bank”) solely for use by the Bank in its presentation of its 2024 full year and 4th quarter report, as well as in strategic updates referred to in the Bank’s reports. This presentation is not a substitute for the Bank’s 2
Slide 3: 2024 – Delivering Robust Performance
2024 – DELIVERING ROBUST PERFORMANCE NET INCOME ROE EFFICIENCY RATIO 4,281 M 14.2% 52.1% Banking in Israel * 3,648M 16.9% 44.1% TOTAL EQUITY DIVIDEND PAYOUT + SHARE BUYBACK NII CHANGE CREDIT GROWTH YoY YoY 33.1BN 30% + 10% -0.9% 8.0% ** Consolidated figures for banking operations of Discount & Merca
Slide 4: The Economy Is at Full Employment; GDP Growth Expected to Recover in 2025
THE ECONOMY IS AT FULL EMPLOYMENT GDP GROWTH IS EXPECT TO RECOVER IN 2025 The war has impacted GDP growth in 2024, Job market shows resilience and strength with recovery anticipated in 2025 (%) 6.5 (GDP growth, in %) 9.7 8.5 4.0 6.3 6.1 5.5 4.8 4.4 3.0 4.1 4.0 3.7 1.4 3.8 3.7 3.7 1.2 0.7 3.3 2.0 0.3
Slide 5: BOI Rate Slowly Decreasing; Inflation Expected to Converge Within Limits
BOI RATE SLOWLY DECREASING INFLATION IS EXPECTED TO CONVERGE WITHIN LIMITS Bank of Israel holds Interest Rate – Slow Decrease Inflation is Projected to Converge within BoI Middle Range (Market Expectations for BoI Rate at end of 2025 on specific dates, %) (Israel Inflation - CPI Forwards, %) 4.35 4.
Slide 6: 4Q24 Financial Highlights
4Q24 FINANCIAL HIGHLIGHTS Net income reaches NIS 1,049m and ROE of 13.4% in 4Q24, despite NII decline amid flat CPI which reduced income by NIS330m. Significant Reduction in Collective Allowance Provision, driven by provision reversals. Credit loss expenses ratio stood at 0.12%. Non-Performing Loans
Slide 7: Robust Credit Growth Driven by the Corporate Segment
ROBUST CREDIT GROWTH DRIVEN BY THE CORPORATE SEGMENT Total Credit Well Balanced Loan Book Mortgages Corporates in NIS bn; growth % in NIS bn; growth % in NIS bn; growth % 8.0% 6.1% 11.9% 1.4% 3.5% 1.6% 77.5 73.7 74.9 11.9% 12.7% 72.7 285.9 69.5 69.2 281.4 264.7 27.4% 25.5% 4Q23 3Q24 4Q24 4Q23 3Q24 4
Slide 8: Credit Loss Expenses & NPL Ratio Revert to Pre-War Levels
CREDIT LOSS EXPENSES & NPL RATIO REVERT TO PRE-WAR LEVELS Credit Loss Provision decreased due to Reversal of Collective NPL/Total Credit* Ratio Returns to Pre-War Levels Allowances Provisions 0.90% 800 0.86% To reflect improvements in macroeconomic parameters 0.83% 0.84% 0.83% 0.76% 0% and the finan
Slide 9: Increase in Recurring Revenues in 2024 Driven by Loan Book Expansion
INCREASE IN RECURRING REVENUES IN 2024 DRIVEN BY LOAN BOOK EXPANSION Total Revenues Impact of flat CPI in Q4 reduces Financing Income From Current Operations increases 4Q24 4Q24 NII by NIS330 mil. vs. vs. BOI rate with expansion of Loan book YoY 3Q24 4Q23 Q-end 4.75% 4.50% 4.50% 4.50% 4.50% 16,074 1
Slide 10: Salary Expenses Contained, Other Costs Linked to Clearing Fees in CAL
SALARY EXPENSES ARE CONTAINED, INCREASE IN OTHER-COSTS ARE LINKED TO CLEARING FEES IN CAL Total Expenses NIS m 53.4% 52.8% 51.3% 49.1% 55.5% 67.5% 65.4% 55.8% 49.6% 52.1% 8,329 4.6% 7,966 9.1% 7.6% 2,925 * 6.3% 2,719 2,205 2,022 2,065 2,075 1,984 16,074 15,978 813 9.1% 680 619 746 747 JAWS 7.0% 1,39
Slide 11: Robust and Diversified Funding Base with Strong Capital Ratio
ROBUST AND DIVERSIFIED FUNDING BASE WITH STRONG CAPITAL RATIO Diversified domestic public deposit base Capital ratio well above the regulatory requirement with high share of households deposits Total Capital Ratio Tier I Capital Ratio Leverage Ratio Overseas 29% Households 13.60% 10.66% 6.7% 13% QoQ
Slide 12: Contribution to Profit from Key Subsidiaries
CONTRIBUTION TO PROFIT FROM KEY SUBSIDIARIES 15.7% 21.9% 16.2% 13.2% 12.0% 12.4% In NIS m 977 YoY growth in In NIS m 324 6.5% Total credit, net 286 YoY growth in 843 277 13.9% Credit card transactions ROE Cost income Adj. ROE Net income 601 42.3% Ratio 2024 Adj. YoY growth in as reported Net income
Slide 13: To Summarize
TO SUMMARIZE Robust & continuous strong results for 2024, with net income of 4.3 bil NIS, and ROE of 14.2%. Responsible yet strong credit growth continues the momentum, with asset quality improving – Credit growth of 8.0% in 2024, growth across all segments. Credit loss provisions: Collective allowa
Slide 14: Appendices
2024 DISCOUNT ANNUAL REPORT APPENDICES oA 14 BANK, ee
Slide 15: Israel Discount Bank: P&L and Selected Ratios
ISRAEL DISCOUNT BANK: P&L AND SELECTED RATIOS NIS m 4Q24 3Q24 4Q23 vs.3Q24 vs.4Q23 2024 2023 change Net interest income 2,591 2,865 2,555 )9.6%( 1.4% 10,839 10,936 -0.9% Credit loss expenses 88 274 390 )67.9%( )77.4%( 702 1,502 -53.3% Non-interest financing income 389 389 295 - 31.9% 1,400 1,218 14.
Slide 16: Israel Discount Bank: Adjustments to P&L
ISRAEL DISCOUNT BANK: ADJUSTMENTS TO P&L NIS, m 4Q24 3Q24 4Q23 Reported net income 1,049 1,137 919 Profit from the sale of rights in Visa Europe - )18( )97( Special Income Tax 6 74 - Effect of Settlement 6 5 - Provisions stemming from the separation of ICC 18 )1( Effect of change in VAT - Adjusted n
Slide 17: Israel Discount Bank: Selected Balance Sheet Items
ISRAEL DISCOUNT BANK: SELECTED BALANCE SHEET ITEMS NIS m 31.12.24 30.9.24 31.12.23 Cash and deposits with banks 62,584 57,096 49,364 Securities 67,634 67,217 59,268 Securities borrowed or purchased under agreements to resell 1,000 1,155 851 Credit to the public 285,898 282,106 264,692 Provision for
Slide 18: Mercantile: Financial Performance
MERCANTILE: FINANCIAL PERFORMANCE Main P&L and Balance Sheet metrics and selected ratios NIS m 4Q24 3Q24 4Q23 Vs. 3Q24 Vs. 4Q23 2024 2023 Change Net interest income 524 588 536 )10.9%( )2.2%( 2,220 2,284 )2.8%( Non-interest income 100 93 209 7.5% )52.2%( 403 533 )24.4%( Total income 624 681 745 )8.4
Slide 19: IDBBANK: Financial Performance
IDBBANK: FINANCIAL PERFORMANCE Main P&L and Balance Sheet metrics and selected ratios USD m 4Q24 3Q24 4Q23 Vs. 3Q24 Vs. 4Q23 2024 2023 Change Net Interest Income 86 82 80 5.4% 7.5% 328 335 )2.1%( Non-Interest income (Expenses) 19 20 )10( N/A N/A 77 45 71.1% Total Income 105 102 70 3.2% 50.0% 405 380
Slide 20: CAL: Financial Performance
CAL: FINANCIAL PERFORMANCE Main P&L and Balance Sheet metrics and selected ratios NIS m 4Q24 3Q24 4Q23 Vs. 3Q24 Vs. 4Q23 2024 2023 Change Income From Credit Card Transactions 503 526 401 )4.4%( 25.4% 1,946 1,751 11.1% Credit Loss Expense 74 79 98 )6.3%( )24.5%( 260 285 )8.8%( Total Income 776 784 61