Mizrahi Tefahot Bank Ltd · TASE:MZTF
Mizrahi Tefahot Bank — Q2 2016 Earnings Presentation
26 slides from Mizrahi Tefahot Bank's earnings presentation, August 2016
Slide 1: Financial Statements June 2016
Financial Statements June 2016 Financial Statements 31 December 2008 1
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 2016 quarterly reports and/ or immediate reports, as well as the periodic, quarterly and ann
Slide 3: Main factors
Main factors • Income • Assets Growth • Customers’ base • Market share • Focusing on high quality business and private Focus clients • Focusing on increasing margins on mortgages • Focusing on efficiency in Bank’s capital • Continued implementation of compliance culture Culture • Implementing cultur
Slide 4: Continuous loan growth
Continuous loan growth Credit to the public NIS m 165,515 159,204 147,569 138,565 128,651 2012 2013 2014 2015 2Q2016 2012 2013 2014 2015 2Q2016 4
Slide 5: Continuous loan growth
Continuous loan growth Credit to the public NIS m 165,515 162,073 159,204 157,996 152,317 150,694 1Q2015 2Q2015 1Q2015 2Q2015 3Q2015 3Q2015 4Q2015 4Q2015 1Q2016 1Q2016 2Q2016 2Q2016 5
Slide 6: Credit growth in most segments
Credit growth in most segments Loans to the public 30.06.2016 30.06.2015 % of change Housing loans 109,970 100,005 10% Households 18,001 16,368 10% Private banking 84 86 )2.3%( Small and micro 14,468 13,554 6.7% businesses Medium businesses 5,037 4,713 6.9% Large businesses 12,763 12,924 )1.2%( Inst
Slide 7: Continuous deposit growth
Continuous deposit growth Deposits from the public 169,621 NIS m 162,380 152,379 141,244 128,081 2012 2012 2013 2013 2014 2014 2015 2015 2Q2016 2Q2016 7
Slide 8: Continuous deposit growth
Continuous deposit growth Deposits from the public NIS m 169,621 165,001 162,380 158,107 153,736 153,002 1Q2015 2Q2015 1Q2015 2Q2015 3Q2015 3Q2015 4Q2015 4Q2015 1Q2016 1Q2016 2Q2016 8
Slide 9: Growth in financing revenues in most of operating segments
Growth in financing revenues in most of operating segments Financing revenues (NIS m) 1H2016 1H2015 % of change Housing loans 527 480 9.8% Households 525 478 9.8% Private banking 25 16 56.3% Small and micro 373 348 7.2% businesses Medium businesses 97 90 7.8% Large businesses 209 216 )3.2%( Institut
Slide 10: Tight control of expenses
Tight control of expenses Operating and other Maintenance and expenses depreciation 825 1.3% 839 174 )1.7%( 171 2Q2015 2Q2016 2Q2015 2Q2016 10
Slide 11: Increase in net profit and financing revenues from current operations compared to Q2/15
Increase in net profit and financing revenues from current operations compared to Q2/15 Net profit Financing revenues from current operations 340 959 3% 13% 330 848 2Q2015 2Q2016 2Q2015 2Q2016 11
Slide 12: Increasing equity base
Increasing equity base Equity NIS m 12,384 11,847 10,797 9,681 8,730 7,601 2011 2011 2012 2012 2013 2013 2014 2014 2015 2015 2Q2016 12
Slide 13: Double digit ROE despite dramatic increase in Equity and extremely low interest rate
Double digit ROE despite dramatic increase in Equity and extremely low interest rate ROE(%) Equity (NIS mil) 2011 2012 2013 2014 2015 1Q2016 2Q2016 In black – Bank of Israel interest rate at the end of a calendar year 13
Slide 14: Dividend distribution
Dividend distribution Dividend distribution (NIS m) 51 120 122 75 43 2011 2011 2012 2012 2013 2013 2014 2014 2015 2015 1H2016 1H2016 14
Slide 15: Progress in line with the strategic plan
Progress in line with the strategic plan Market Shares 31.3.2016 31.12. 2017 Updated plan Loans to the Public 17.8% 19.0% Balance Sheet Debt 19.1% 20.0% in Israel Deposits from the 15.2% 17.5% Public Mortgages (New 39.2% * +35% Initiations) * As off 30.6.2016 15
Slide 16: Financial results
oo MIZRAHI TEFAHOT Financial results 16
Slide 17: Net profit (NIS mil)
Net profit (NIS mil) 330 340 316 288 248 240 Q1 Q2 Q3 Q4 Q1 Q2 2015 2016 17
Slide 18: Net profit (NIS mil) H1-2015 H1-2016
Net profit (NIS mil) 628 578 H1-2015 H1-2016 18
Slide 19: Equity (NIS bil)
Equity (NIS bil) 12.4 11.3 30.6.2015 30.6.2016 19
Slide 20: Net profit - ROE (NIS mil)
Net profit - ROE (NIS mil) 12.4% 11.5% 11.6% 9.4% 10.0% 8.4% Q1 Q2 Q3 Q4 Q1 Q2 2015 2016 20
Slide 21: Financing Revenues (NIS mil)
Financing Revenues (NIS mil) Rate of H1-2016 H1-2015 change Interest revenues, net 1,774 1,781 Non-interest financing revenues 136 80 Total financing revenues 1,910 1,861 2.6 Less: Linkage differentials with respect to CPI position (62) (63) Revenues from collection of interest on troubled debt 20 2
Slide 22: Operating commissions (NIS mil)
Operating commissions (NIS mil) 721 717 H1- 2015 H1- 2016 22
Slide 23: Cost / income ratio
Cost / income ratio 63.4 61.3 60.8 58.4 56.9 57.8 Q1 Q2 Q3 Q4 Q1 Q2 2015 2016 23
Slide 24: Provisions / loans to the public
Provisions / loans to the public 0.15% 0.19% 0.14% 0.09% 0.11% 0.01% Q1 Q2 Q3 Q4 Q1 Q2 2015 2016 24
Slide 25: Capital adequacy
Capital adequacy 13.29% 13.23% 12.86% Tier I 9.30% 9.50% 9.72% 30.6.2015 31.12.2015 30.6.2016 25
Slide 26: Dividend (NIS mil)
Dividend (NIS mil) Year Amount 2015 122.1 2016 (Q1) 43.2 2016 Q2) 51.0 Total 216.3 26