Bank Leumi Le-israel B.m. · TASE:LUMI

Bank Leumi Le-israel B.m — FY2019 Earnings Presentation

16 slides from Bank Leumi Le-israel B.m's earnings presentation, 2020

  1. Slide 1: 2019 Financial Results

    2019 FINANCIAL RESULTS

  2. Slide 2: Disclaimer

    The conference call does not replace the need to review the latest periodic/quarterly reports in which full information is contained, including forward looking information, as defined in the Israeli Securities Law, and set out in the aforementioned reports. DISCLAIMER This document and the informati

  3. Slide 3: 2018 to 2019 – Improved Profitability and Efficiency Year-over-Year

    2018 to 2019 – Improved Profitability and Efficiency Year-over-Year Cost Income Ratio ROE Total Income 60.6% NIS 13,922M 56.8% 9.5% 9.8% 2018 2019 2018 2019 EPS 2.37 2.15 (NIS) 2018 2019 3

  4. Slide 4: 2018 to 2019 – Income and Profitability from Core Business Up

    2018 to 2019 – Income and Profitability from Core Business Up Income & NIM* ROE* 2.14% 2.13% 7.7% 13,608 12,639 9.2% 9.0% 2018 2019 NIM 2018 2019 Cost Income Ratio* 60.5% 58.1% 2018 2019 (NIS Billions) * Net of the effect of Leumi Card as per the pro-forma financial statements presentation 4

  5. Slide 5: 2018 to 2019 – Breakdown of Income and Expenses

    2018 to 2019 – Breakdown of Income and Expenses Finance Income Loan Loss Expenses 10.2% 8,841 NPL 8,583 0.75% 0.22% 0.15% 609 403 684 1,372 2018 2019 2018 2019 Net Interest Income Non-interest Financing Income Fees, Commissions and Other Income Operating and Other Expenses 3.5% 0.7% 7,644 7,908 4,24

  6. Slide 6: Q4 – Breakdown of Income, Expenses and Profit

    Q4 – Breakdown of Income, Expenses and Profit Finance Income Loan Loss Expenses 11.6% 2,546 2,281 2,163 2,192 0.25% 0.23% 167 158 89 383 Q4 2018* Q4 2019 Q4 2018* Q4 2019 Net Interest Income Non-interest Financing Income Cost Income Ratio Net Income 63.3% 11.4% 61.7% 742 666 Q4 2018* Q4 2019 Q4 2018

  7. Slide 7: Continuous Streamlining of the Business

    Continuous Streamlining of the Business Number of Employee Positions Continues to Fall Income Per Employee is on the Rise 1,432 12,693 11,636 1,228 11,227 1,170 1,152 1,027 1,049 9,740 9,239 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 Source: Company filings. *Including 1,170 employees of Leum

  8. Slide 8: Loan Growth in Line with Strategy

    Loan Growth in Line with Strategy Total Middle-Market 14% 19% 6.3% Retail Mortgages 40.7 282.5B 38.3 23% Middle-Market Corporate 30% Other 14% 2018 2019 Mortgages Corporate 4.7% 10.6% 85.4 81.5 64.1 57.9 2018 2019 2018 2019 (NIS Billions) Corporate includes Corporate and Real-Estate 8

  9. Slide 9: Solid and Diverse Deposit Base. Conservative, Well-funded Portfolio

    Solid and Diverse Deposit Base. Conservative, Well-funded Portfolio 373.6 362.9 364.7 346.9 350.0 Deposits from the Public December 31, 2019 328.7 303.4 300.0 286.0 100% Retail 84% 6% 250.0 Small Businesses 76% 20% 42% Commerical 200.0 Corporate & Real 7% Estate Capital Markets 150.0 14% 11% Subsidi

  10. Slide 10: Robust Capital Ratios and Leverage

    Robust Capital Ratios and Leverage CET1 Total Capital Ratio Minimum internal Minimum regulatory threshold: 10.50% requirement: 13.77% 14.99% 15.67% 11.43% 11.88% 13.74% 9.58% 2015 2017 2019 2015 2017 2019 Leverage Ratio Liquidity Coverage Ratio Minimum regulatory Minimum regulatory requirement: 6.0%

  11. Slide 11: High Share Returns via Dividend and Buyback

    High Share Returns via Dividend and Buyback Return to Shareholders Dividends • 40% payout ratio • 4.2% annualized dividend yield 2,109 2,003 1,303 1,409 Buyback Plan 969 • 2019 NIS 700 million share buy-back plan 700 700 completed • New 2020 Plan Approved, NIS 700 million - 2017 2018 2019 60% effect

  12. Slide 12: Wrapping Up

    Wrapping Up Profitability • ROE reached 9.8% for 2019 • Cost Income Ratio Improved • 2019 Efficiency plan – 400 employees retired at year-end Loans and Deposits • Selective Loan Growth Aligned with Strategy • Diversified, Increased Deposit Base with Low L/D Ratio • Robust Capital Adequacy Ratios Rob

  13. Slide 13: Q&A

    Q&A

  14. Slide 14: Thank You

    THANK YOU

  15. Slide 15: Appendix

    APPENDIX

  16. Slide 16: Macro Profile – a Positive for Leumi

    Macro Profile – a Positive for Leumi E2020* E2019* 2018 2017 GDP, rate of change, real terms 3.0% 3.3% 3.4% 3.6% Private Consumption 2.9% 3.9% 3.7% 3.4% Current account surplus, % of GDP 3.9% 3.7% 2.6% 2.4% Government budget deficit, % of GDP (3.5%) (3.6%) (2.9%) (1.9%) Government debt, % of GDP 61.

Bank Leumi le-Israel B.M. — FY2019 Earnings Presentation on 6ix