Bank Leumi Le-israel B.m. · TASE:LUMI
Bank Leumi Le-israel B.m — Bank Leumi Le Israel — Q1 2025 Earnings Presentation
16 slides from Bank Leumi Le-israel B.m's earnings presentation, May 20, 2025
Slide 1: Q1 2025 Financial results presentation
Q1 2025 Financial results presentation
Slide 2: Disclaimer
Disclaimer This document and the information contained herein – The conference call does not replace the need to review the 1. Has been prepared by Bank Leumi le-Israel B.M. (the “Bank”) solely for the purpose of presenting the Bank's business; latest periodic / quarterly reports in 2. Is provided s
Slide 3: Israeli Macro: Recovery that began in 2H24 to continue in 2025-26
Israeli Macro: Recovery that began in 2H24 to continue in 2025-26 GDP (Real GDP Growth) Inflation close to higher end of BOI range (Inflation Evolution) 9.4% Israel OECD 5.3% 6.2% 6.3% 4.0% 3.0% 3.2% 3.0% 3.5% 2.8% 2.7% 3.2% 1.8% 1.8% 1.7% 1.9% 1.9% 1.0% 2021 2022 2023 2024 2025E 2026E 2021 2022 202
Slide 4: Bank Leumi: Consistently high and stable ROE and net profit
Bank Leumi: Consistently high and stable ROE and net profit 15.6% 15.9% 15.5% 16.2% 15.4% 0.6 2.5 2.4 2.3 2.3 2.2 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 (NIS Billions) Q1 2024 net profit of NIS 2.2bn and ROE of 15.6% is excluding NIS 0.6bn of post-tax profit from the sale of the bank’s HQ buildings
Slide 5: Strong underlying performance
Strong underlying performance Key financial metrics Q1 2025 Q1 2024 FY 2024 Net Income 2,403 2,785 (2,153)* 9,798 ROE 15.4% 20.2% (15.6%)* 16.9% Cost Income Ratio 32.1% 29.0% (33.4%)* 29.9% Credit Loss Expenses 0.05% 0.21% 0.16% Q-o-Q Q-o-Q Y-o-Y Net Loan Growth 1.6% 2.2% 8.6% Q-o-Q Q-o-Q Y-o-Y BVPS
Slide 6: Q1 2025 vs. Q1 2024 – Breakdown of Income and Expenses
Q1 2025 vs. Q1 2024 – Breakdown of Income and Expenses Finance Income Operating and Other Expenses 4,501 4,310 (5.2%) 1,825 1,731 4,017 3,767 1,218 6.6% 1,079 Q1 2024 Q1 2025 CPI 0.3% CPI 0.3% NIM 2.22% NIM 2.35% 734 293 607 652 Q1 2024 Q1 2025 Q1 2024 Q1 2025 Net Interest Income Non-interest Financ
Slide 7: Net interest income and NIM
Net interest income and NIM 2.73% 2.61% 2.35% 2.22% 2.21% Reported NIM 2.33% 2.27% 2.14% 2.22% 2.21% NIM ex. CPI 4,378 4,545 4,017 3,767 3,819 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 (NIS Millions) 7
Slide 8: Growth in fees
8 Growth in fees 4.7% CAGR 3,737 3,823 9.2% 3,335 3,487 1,021 935 287 FY 2021 FY 2022 FY 2023 FY 2024 268 190 164 145 148 150 156 129 111 111 97 Q1 2024 Q1 2025 Financing Account Securities Exchange Credit Cards Other Fees Transactions Management Transactions Differentials Q1 2024 Q1 2025 (NIS Milli
Slide 9: Specific provisions consistently low
Specific provisions consistently low Reflective of high quality credit portfolio Loan loss expenses 0.21% 0.28% 0.17% 0.36% 0.34% 378 (0.02%) 375 0.05% 0.19% 220 0.06% 0.06% (0.15%) (0.08%) 68 (0.06%) (0.02%) (0.01%) 72 -23 -17 -86 -63 -156 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Specific Collective
Slide 10: NPLs remain low
NPLs remain low Higher provisions and coverage despite lower NPLs NPLs Troubled Debts Total Provisions 1.58% 1.78% 1.49% 1.45% 1.28% 1.54% 1.45% 1.39% 0.85% 6.7 6.9 6.8 NIS Bn 5.0 0.49% 0.50% 0.51% 2022 2023 2024 Q1 2025 2022 2023 2024 Q1 2025 2022 2023 2024 Q1 2025 Reported. Total Troubled Debts, N
Slide 11: Responsible credit growth
Responsible credit growth Total Loans Mortgages 146.6 148.3 462.8 455.5 1.6% 1.1% 134.3 428.6 8.0% 10.4% Q1 2024 Q4 2024 Q1 2025 Q1 2024 Q4 2024 Q1 2025 Middle-Market Corporate 65.6 65.1 143.1 0.7% 137.3 4.3% 63.3 130.2 3.6% 10.0% Q1 2024 Q4 2024 Q1 2025 Q1 2024 Q4 2024 Q1 2025 (NIS Billions) 11 Cor
Slide 12: Expanding and diversifying deposit base
Expanding and diversifying deposit base Individual Deposits Diversified deposit base 175.6 176.1 0.3% 172.3 Capital Private Markets Individuals 2.2% 29.5% 37.9% Q1 2024 Q4 2024 Q1 2025 Corporate Deposits from the Public and Real Deposits and Loan to Deposits Estate Loan / deposit ratio 8.7% Small 61
Slide 13: Solid capital and leverage ratios
Solid capital and leverage ratios CET1 Total Capital Ratio TCE and Leverage Ratios 14.72% 14.83% 14.83% 14.29% TCE / Total Assets 8.5% 7.7% 8.0% 12.17% 12.15% 7.4% 11.66% 13.5% 13.5% 13.5% 13.5% 11.46% 6.94% 7.27% 6.36% 6.65% 10.2% 10.2% 10.2% 10.2% 5.5% 5.5% 5.5% 5.5% 2022 2023 2024 Q1 2025 2022 20
Slide 14: Returning capital via dividends and buybacks
Returning capital via dividends and buybacks Capital Return ▪ NIS 1.0 Billion capital return in Q1 2025 reflecting a 40% total Dividends 3.9 payout ratio – cash Buybacks 1.0 dividend of NIS 0.7 Billion and NIS 0.2 Billion as a 2.3 buyback. 1.8 0.6 ▪ Targeting minimum 50% 2.9 payout in 2025-26, 1.0 s
Slide 15: Investment highlights
Investment highlights Maintaining responsible growth without elevated risk 1 Consistently high and stable profitability and profits 2 Continued growth in net loans in target segments 3 Best credit quality – low specific provisions, low NPLs, low problematic debts 4 Most efficient bank – best-in-clas
Slide 16: Thank you / Q&A
Q1 2025 Results presentation Thank you / Q&A 16