Bank Leumi Le-israel B.m. · TASE:LUMI
Bank Leumi Le-israel B.m — Bank Leumi Le Israel — FY 2024 Earnings Presentation
22 slides from Bank Leumi Le-israel B.m's earnings presentation, Mar 4, 2025
Slide 1: FY 2024 Results Presentation
FY 2024 Results Presentation
Slide 2: Disclaimer
Disclaimer This document and the information contained herein – 1. Has been prepared by Bank Leumi le-Israel B.M. (the “Bank”) solely for the purpose of presenting the Bank's business; The conference call does not replace the 2. Is provided solely for your information and may not to be copied, distr
Slide 3: FY 2024 Results Presentation - Hanan Friedman, President & CEO
FY 2024 Results Hanan Friedman Presentation President & CEO 3
Slide 4: Strong multi-year financial performance
Strong multi-year financial performance Net loans Net profit 40.2% 62.5% 9.8 419.5 455.5 384.8 8.1 325.0 7.1 6.0 2021 2022 2023 2024 2021 2022 2023 2024 Cost income ROE 15.9% 16.9% 45.8% 15.0% 15.6% 37.2% 32.6% 29.9% 2021 2022 2023 2024 2021 2022 2023 2024 Note: Net loans and cost income is excludin
Slide 5: Doing more with less
Doing more with less Powered by extensive investments in technology 4.5 Quarterly Loans (RHS) Quarterly Expenses (LHS) Cost Income Ratio 475 450 4.0 60.5% 57.9% 425 53.2% 400 3.5 375 3.0 45.8% 350 325 2.5 37.2% 300 32.6% 29.9% 275 2.0 250 1.5 225 2018 2019 2020 2021 2022 2023 2024 Expenses and Loans
Slide 6: Financial targets for 2025-26
Financial targets for 2025-26 Net profit NIS 9-11 Bn ROE ~ 15-16% * Credit growth ~ 8-10% Capital return Minimum 50% * Capital return = cash dividend and share buyback * ROE and Capital Return targets are both subject, among other things, to the removal of restrictions on capital distribution set by
Slide 7: FY 2024 Results Presentation - Hagit Argov, SVP & CFO
FY 2024 Results Hagit Argov Presentation SVP & CFO 7
Slide 8: Recovery that began in 2H24 to continue in 2025-26
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% 4.5% 3.2% 3.1% 4.0% 2.8% 3.0% 3.2% 2.5% 1.8% 1.8% 1.7% 1.9% 1.9% 1.0% 2021 2022 2023 2024 2025E 2026E 2021 2022 2023 2024 2025E 20
Slide 9: Strong underlying performance
Strong underlying performance Key financial metrics FY 2024 FY 2023 4Q 2024 Net Income 9,798 7,027 2,451 ROE 16.9% 13.7% 16.2% Cost Income Ratio 29.9% 32.6% 30.9% Credit Loss Expenses 0.16% 0.58% 0.17% Y-o-Y Y-o-Y Q-o-Q Net Loan Growth 8.6% 9.0% 1.9% Y-o-Y Y-o-Y Q-o-Q BVPS Growth 14.6% 11.7% 2.7% 9
Slide 10: Q4 2024 vs. Q4 2023 – Breakdown of Income and Expenses
Q4 2024 vs. Q4 2023 – Breakdown of Income and Expenses Finance Income Operating and Other Expenses 7.6% 4,186 4,505 -8.0% 1,860 1,712 3,850 3,819 1,185 1,036 Q4 2023 Q4 2024 CPI 0.1% CPI -0.1% NIM 2.40% NIM 2.21% 686 336 675 676 Q4 2023 Q4 2024 Q4 2023 Q4 2024 Net Interest Income Non-interest Financ
Slide 11: 2024 vs. 2023 – Breakdown of Income and Expenses
2024 vs. 2023 – Breakdown of Income and Expenses Finance Income 6.1% Operating and Other Expenses 17,276 18,329 0.1% 15,997 16,509 6,894 6,904 4,327 4,311 2023 2024 CPI 3.3% 1,820 CPI 3.4% 1,279 2,567 2,593 NIM 2.57% NIM 2.44% 2023 2024 2023 2024 Net Interest Income Non-interest Finance Income Total
Slide 12: Net Interest Income and NIM
Net Interest Income and NIM 2.61% 2.73% 2.40% 2.22% 2.21% Reported NIM 2.36% 2.33% 2.14% 2.22% 2.21% NIM ex. CPI 4,378 4,545 3,850 3,767 3,819 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 (NIS Millions) 12
Slide 13: Growth in fees despite the war
Growth in fees despite the war 4.7% CAGR 3,737 3,823 2.3% 3,335 3,487 3,737 3,823 1,049 1,058 FY 2021 FY 2022 FY 2023 FY 2024 616 582 654 6.2% 591 597 609 501 498 422 994 383 936 Q4 Q4 FY FY Financing Account Securities Exchange Credit Cards Other Fees 2023 2024 2023 2024 Transactions Management Tra
Slide 14: Multi-year decline in cost-income ratio
Multi-year decline in cost-income ratio 57.9% 53.2% 45.8% 37.2% 32.6% 29.9% 2019 2020 2021 2022 2023 2024 Leumi cost income ratio for 2019 is net of the effect of Leumi Card and for 2019-2022 excludes Leumi USA. 14
Slide 15: Stable loan loss expenses
Stable loan loss expenses, With negligible specific provisions Loan loss expenses 0.58% 0.50% 2,033 0.16% 0.23% 1,041 0.21% 0.28% (0.02%) 0.17% 0.08% 0.36% 0.34% 0.06% 0.19% 350 378 375 (0.07%) (0.15%) (0.08%) 68 (0.06%) (0.02%) 220 -328 -86 -63 -23 -156 FY 2023 FY 2024 Q1 2024 Q2 2024 Q3 2024 Q4 20
Slide 16: Credit quality has improved
Credit quality has improved Higher provisions and coverage despite lower NPLs NPLs Troubled Debts Total Provisions 1.78% 1.58% 1.54% 1.49% 1.45% 1.28% 0.85% NIS Bn 6.7 6.9 0.49% 0.50% 5.0 NISbn 1.9 3.6 2.3 NISbn 6.0 7.6 6.5 6.7 2022 2023 2024 2022 2023 2024 2022 2023 2024 Reported. Total Troubled De
Slide 17: Continuing to grow credit in target segments
Continuing to grow credit in target segments Total Loans Mortgages 455.5 146.6 419.5 120.9 9.2% 132.1 11.0% 384.8 9.0% 8.6% 2022 2023 2024 2022 2023 2024 Middle-Market Corporate 65.1 137.3 127.4 109.5 62.6 16.3% 7.8% 2.9% 4.1% 60.8 2022 2023 2024 2022 2023 2024 17 (NIS Billions) Corporate includes C
Slide 18: Expanding and diversifying deposit base
Expanding and diversifying deposit base Retail Deposits Diversified Deposit base 287.0 273.0 Private Capital Individuals 258.4 5.6% 5.1% Markets 37% 31% 2022 2023 2024 Deposits from the Public Corporate Deposits from the Public and Real Loan / deposit ratio Estate 9% Small 618.3 Commercial Businesse
Slide 19: Solid capital and leverage ratios
Solid capital and leverage ratios CET1 Total Capital Ratio TCE and Leverage Ratios 14.72% 14.83% 14.29% TCE / Total Assets 7.7% 8.0% 12.17% 7.4% 11.66% 13.50% 13.50% 13.50% 11.46% 6.65% 6.94% 6.36% 10.21% 10.22% 10.24% 5.5% 5.5% 5.5% 2022 2023 2024 2022 2023 2024 2022 2023 2024 CET1 Ratio Minimum Re
Slide 20: Returning capital via dividends and buybacks
Returning capital via dividends and buybacks Capital Return ▪ NIS 3.9 Billion capital return in 2024 is significantly higher than Dividends 3.9 2023. Buybacks 1.0 ▪ NIS 1.0 Billion capital 2.3 return in Q4 2024, of which NIS 0.7 Billion is a 1.8 0.6 cash dividend, reflecting 2.9 a 40% total payout r
Slide 21: Investment highlights
Investment highlights Maintaining responsible growth without elevated risk 1 Record high annual net income and ROE at NIS 9.8 billion and 16.9% 2 Continued growth in target segments – mortgages, middle-market, corporate credit and core deposits 3 Best credit quality – income from specific provisions
Slide 22: Thank you / Q&A
FY 2024 Results Presentation Thank you / Q&A 22