Mizrahi Tefahot Bank Ltd · TASE:MZTF
Mizrahi Tefahot Bank — Q3 2019 Earnings Presentation
28 slides from Mizrahi Tefahot Bank's earnings presentation, Sep 30, 2019
Slide 1: Financial Statements September 30, 2019
Financial Statements September 30, 2019
Slide 2: Disclaimer
Disclaimer • This document has been prepared by Mizrahi-Tefahot Bank Ltd (UMTB) solely for use at the company's presentation. The information contained in this document constitutes information from the bank's 2019 quarterly reports and/ or immediate reports, as well as the periodic, quarterly and an
Slide 3: The strategy is working
The strategy is working 3
Slide 4: Net profit
Net profit (NIS mil) 10.5% * 1,402 454 1,269** 422 1,004 3Q2018 3Q2019 1-9/2018 1-9/2019 *Assuming CPI at 0% (actual CPI -0.7% compared with 0.2% in Q3 2018) **Excluding the provisions for the US Department of Justice's investigation, and taking into account provisions for bonuses in line with the l
Slide 5: Net profit - ROE
Net profit - ROE (NIS mil) ROE target for 2021 according to the strategic plan 13.4% * 11.1% 12.3** 12.4% 9.7% 11.5% 3Q2018 3Q2019 1-9/2018 1-9/2019 *Assuming CPI at 0% (actual CPI -0.7% compared with 0.2% in Q3 2018) **Excluding the provisions for the US Department of Justice's investigation, and t
Slide 6: Cost/income ratio
Cost/income ratio Cost/income ratio target for 2021 according to the strategic plan 62.1% 56.7% 54.5% * 55.5%** 54.6% 55% 3Q2018 3Q2019 1-9/2018 1-9/2019 *Assuming CPI at 0% (actual CPI -0.7% compared with 0.2% in Q3 2018) **Excluding the provisions for the US Department of Justice's investigation,
Slide 7: Continuous loan growth
Continuous loan growth Credit to the public (NIS mil) Average annual growth rate – 7% 202,578 194,381 181,118 171,341 159,204 147,569 138,565 128,651 2012 2013 2014 2015 2016 2017 2018 1-9/2019 7
Slide 8: Credit growth in all segments: retail and business
Credit growth in all segments: retail and business (NIS mil) 30.9.2019 30.9.2018 % of change Housing loans 132,371 123,848 6.9% Households and Private banking 21,418 20,565 4.1% Small and micro businesses 20,830 18,428 13.0% Medium businesses 7,041 6,055 16.3% Large businesses and Institutional inve
Slide 9: Continuous loan growth while maintaining low provisioning level
Continuous loan growth while maintaining low provisioning level 0.41% 0.40% 0.16% 0.16% 0.03% 0.04% Provisions to of that: of that: housing loans to the public commercial 1-9/2018 1-9/2019 9
Slide 10: Mortgage – continuous growth of balance and revenues
Mortgage – continuous growth of balance and revenues * 367 400.2 362 127.5 348 349 323 333 350.2 307 310 126 122.5 124 275 284 300.2 262 122 117.5 244 249 235 118 119 250.2 215 116 117 112.5 115 114 200.2 111 112 107.5 109 108 150.2 102.5 105 100.2 102 97.5 50.2 92.5 0.2 1Q2016 2Q2016 3Q2016 4Q2016
Slide 11: Continuous deposit growth
Continuous deposit growth Deposits from the public (NIS mil) Average annual growth rate 7.4% 207,832 199,492 183,573 178,252 162,380 152,379 141,244 128,081 2012 2013 2014 2015 2016 2017 2018 1-9/2019 11
Slide 12: Deposit growth – mainly in core deposits
Deposit growth – mainly in core deposits 30.9.2019 8.6%* 31.12.2015 1.6%* 35.1% 41.2% 46.1% 48.4% 4.0% 3%* 12.5% 3.8% 9.0% 27%* Large businesses, institutional investors & overseas operations Medium businesses Small and micro businesses Households and private banking * % of change from corresponding
Slide 13: Financing revenues from current operations continue to grow
Financing revenues from current operations continue to grow (NIS mil) Average annual growth rate – 11.6% 1,372 1,357 1,349 1,324 1,253 1,221 1,141 1,124 1,095 1,067 1,047 1,018 946 990 922 909 854 898 849 1Q2015 2Q2015 3Q2015 4Q2015 1Q2016 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 3Q2017 4Q2017 1Q2018 2Q20
Slide 14: Financing revenues grow at a higher pace than growth in credit
Financing revenues grow at a higher pace that growth in credit* (NIS m) 1-9/2019 1-9/2018 % of change Housing loans 1,247 1,118 11.5% Households and private banking 1,076 971 10.8% Small and micro businesses 862 742 16.2% Medium businesses 218 178 22.5% Large businesses and institutional investors 4
Slide 15: Double digit ROE despite dramatic increase in equity and low interest rate
Double digit ROE despite dramatic increase in equity and low interest rate ROE Equity 19,500 (NIS mil) 14% 13.0% 12.4% 11.8% 11.6%* 17,500 12% 10% 2% 10.6% 10.0% 10.2% 10.2% 8.5% 15,500 In black – 15,755 Bank of 8% 14,681 13,500 Israel 13,685 interest6% 1% 11,847 12,714 11,500 rate at 4% 10,797 9,50
Slide 16: Becoming a significant financial assets administrator in the system
Becoming a significant financial assets administrator in the system Financial assets administration services 30.9.2019 30.9.2018 % of change Securities 432,452 247,076 75.0% Provident funds operation 90,964 82,113 10.8% Trustee assets and mutual funds operations 83,858 93,130 )10.0%( Other managed a
Slide 17: Bank Yahav’s business results continue to improve
Bank Yahav’s business results continue to improve 78% 76.6% 76.2% 77.3% 11.4% 12% 76% 75.5% 11% 10.2% 74% 10% 9% 72% 7.4% 8% 70% 7.1% 7.1% 6.2% 70.7% 7% 68% 68.6% 6% 66% 5% 64% 4% 2014 *2015 2016 2017 2018 1-9/2019 ROE Cost / income ratio * 2015 results exclude extraordinary profit from capital mark
Slide 18: Continue to distribute dividend according to the policy
Continue to distribute dividend according to the policy (NIS mil) 561 Dividend distribution for the relevant period For Q3/2019 169 404 For H1/2019 190 137 392 120 122 75 2010 2011 2012 2013 2014 2015 2016 2017 2018 1-9/2019 18
Slide 19: Financial results
Financial results 19
Slide 20: Net profit and ROE
Net profit and ROE (NIS mil) 15.8% 576 13.4% 11.1% 454 11.3% 10.3% 404 422 343 6.1% 5.7% 207 202 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2018 2019 20
Slide 21: Net profit and ROE (excluding provisions)
Net profit and ROE * * (NIS mil) 15.8% * 576 14.1%* 13.4% 472 11.3% 11.1% 454 10.7%* 10.3% 404 422 378 343 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2018 2019 *Excluding the provisions for the US Department of Justice's investigation, and taking into account provisions for bonuses in line with the level of profitability
Slide 22: Condensed P&L report
Condensed P&L report 1-9/2019 1-9/2018 % of change Interest revenue, net 3,988 3,662 8.9 Non interest revenues 1,497 1,450 3.2 Total 5,485 5,112 7.3 Expenses with respect to credit losses 245 233 5.2 Operating and other expenses 2,995 3,173 )5.6( Net profit 1,402 1,004 39.6 22
Slide 23: Financing revenues
Financing revenues (NIS mil) Rate of 1-9/2019 1-9/2018 change Interest revenues, net 3,988 2,426 Non-interest financing revenues 293 219 Total financing revenues 4,281 2,645 7.4 Less Linkage differentials with respect to CPI position 112 165 Revenues from collection of interest on troubled debt 27 2
Slide 24: Provisions / loans to the public
Provisions / loans to the public 0.20% 0.19% 0.18% 0.16% 0.15% 0.14% 0.13% 31.3.2018 30.6.2018 30.9.2018 31.12.2018 31.3.2019 30.6.2019 30.9.2019 24
Slide 25: Operating and other expenses
Operating and other expenses 1-9/2019 1-9/2018 % of change Salaries 1,934 1,724 12.2 Building and equipment maintenance and depreciation 578 561 3.0 Others 483 463 * 4.3 Total 2,995 2,748 * 9.0 *Excluding the provisions for the US Department of Justice's investigation. 25
Slide 26: Main balance sheet items development
Main balance sheet items development 30.9.2019 30.9.2018 % of change Total balance sheet 267,001 248,831 7.3 Loans to the public, net 202,578 189,796 6.7 Deposits from the public 207,832 192,943 7.7 Securities 10,566 10,093 4.7 Equity 15,755 14,441 9.1 26
Slide 27: Capital adequacy
Capital adequacy 13.64% 13.75% Total Ratio 10.01% 10.13% Tier 1 31.12.2018 30.9.2019 27
Slide 28: Thank You
Thank You