Bank Leumi Le-israel B.m. · TASE:LUMI
Bank Leumi Le-israel B.m — Q3 2017 Earnings Presentation
21 slides from Bank Leumi Le-israel B.m's earnings presentation, 2017
Slide 1: Leumi Q3 2017 Results Presentation
LEUMI Q3 2017 RESULTS PRESENTATION
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
Slide 3: Leumi's Journey Clearly Demonstrated in its Strong Results
Leumi’s Journey Clearly Demonstrated in its Strong Results Leading Digital Transformation Enhanced Efficiency High Quality Loan Portfolio Increased Adoption of Digital Channels Additional Significant Number of Very Low Rate of Loan Loss Employees to Retire at Year End Provisions 1st and Only Followi
Slide 4: 2017: Strong Momentum Continues
2017: Strong Momentum Continues Return On Equity* 10.3% 9.4% 9.7% 8.6% Q3 2016 Q3 2017 9M 2016 9M 2017 Net Interest Income 1,970 1,918 5,659 5,956 Credit Loss Expenses 106 3 (171) 146 Noninterest Income 499 222 1,057 674 Commissions 996 1,043 2,973 3,068 Q3 2016 Q3 2017 9M 2016 9M 2017 Return On Equ
Slide 5: Core Business Continues to Improve - Key Financial Metrics
Core Business Continues to Improve - Key Financial Metrics Q1-Q3 2017 ROE NIM Efficiency Ratio Credit Loss CET1 NPL Ratio Ratio NPL Expenses 9.7% 2.03% 62.9% 0.07% 11.35% 0.95% 0.95% Q1-Q3 2016 Credit Loss CET1 NPL Ratio ROE* NIM Efficiency Ratio Expenses 8.6% 1.95% 64.7% (0.09)% 10.86% 1.32% *(2016
Slide 6: Loan Growth
Loan Growth CAGR 3.4%* 269 * 262 266 Dec 31, 2016 Sep 30, 2017 *Excluding the effect of the shekel appreciation (NIS Billions) 6
Slide 7: Stable Liquidity. Conservative, Well-funded and Diverse Portfolio
Stable Liquidity. Conservative, Well-funded and Diverse Portfolio 100% 347 350 84% 329 303 Deposits from the Public 30.9.2017 286 76% 261 262 266 252 241 7% Retail Commerical 19% Corporate & Real estate 7% 55% Capital Markets 12% Subsidiaries 0% 2013 2014 2015 2016 Q3 2017 Deposits from the Public L
Slide 8: Strong Net Interest Income and Net Interest Margins
Strong Net Interest Income and Net Interest Margins 1.95% 2.03% 5.2% 5,956 5,659 2.01% 1.96% (2.6)% 1,970 1,918 Q3 2016 Q3 2017 9M 2016 9M 2017 Net Interest Margin Net Interest Income (NIS Millions) 8
Slide 9: Maintaining Low Credit Loss Expenses, High Quality Loan Portfolio
Maintaining Low Credit Loss Expenses, High Quality Loan Portfolio Low Credit Loss Expenses NO SINGLE 10% 0.19% BORROWERS GROUP 472 0.11% 268 0.08% 0.07% 199 146 2016 0.00% 3 2013 2014 2015 31/3/2017 30/6/2017 30/9/2017 -125 (0.05%) (NIS Millions) 9
Slide 10: Leading, Resilient and High Quality Credit Portfolio
Leading, Resilient and High Quality Credit Portfolio Substantial Improvement in NPL Ratio Continuous Positive Trend in Problem Debts 9000 2.8% 10,931 8000 2.5% 9,801 9,551 6,788 2.1% 7000 2.0% 7,928 6000 1.7% 55% 7,628 5,214 6,867 5000 1.5% 4,406 1.3% 1.2% 4000 3,482 40% 3,219 0.9% 1.0% 3000 2,554 1
Slide 11: Diverse and Increased Commission Revenue
Diverse and Increased Commission Revenue 3.2% 3068 2973 766 797 633 617 608 613 4.7% 537 502 519 996 1043 449 Q3 Q3 9M 9M Credit Cards Financing Transactions Securities Transactions Account Management Other Fees 2016 2017 2016 2017 9M 2016 9M 2017 (NIS Millions) 11
Slide 12: 9M: Bearing the Fruit of Efficiency Measures
9M: Bearing the Fruit of Efficiency Measures (5.3%) 9M 2016 9M 2017 6,442 6,103 (7.5%) Total Salary & Related 4,142 3,831 4,049 Expenses 3,788 One-time Bonus & Effect Of Collective Wage Agreements 93 43 Total Salary & Related Expenses Core Salary Expenses (6.4%) 4,049 3,788 Operating and Other 2,158
Slide 13: Q3: Bearing the Fruit of Efficiency Measures
Q3: Bearing the Fruit of Efficiency Measures (5.2%) Q3 2016 Q3 2017 2,190 2,076 (6.6%) 1,354 Total Salary & Related 1,354 1,264 1,264 Expenses Total Salary & One-time Bonus & Effect of Collective Wage Agreements - - Related Expenses CORE SALARY EXPENSES (6.6%) 1,354 1,264 Operating & Other 601 812 E
Slide 14: Efficiency Improving – Positions Reduced, Productivity Increased
Efficiency Improving – Positions Reduced, Productivity Increased Number of Positions Reduced. Efficiency Ratio Continues to Improve Net Income Per Position Increased 14,114 13,809 13,401 12,693 11,636 73.9% 72.2% 1,055 68.4% 66.3% 1,027 65.8% 948 62.9% 886 820 2011 2012 2013 2015 2016 2011 2012 2013
Slide 15: A View of our Capital Adequacy Ratios
A View of our Capital Adequacy Ratios Rising Capital Ratios, Increased Dividend Policy Regulatory Target Leumi’s Target Tier 1 Capital ratio Total Capital Ratio 15.21% 15.08% 13.8% 13.90% 13.74% 11.15% 11.35% 10.3% 10.5% 9.58% 9.09% 31.3 32.8 28.8 25.8 31.12.2014 31.12.2015 31.12.2016 30.9.2017 30.9
Slide 16: Increased Dividend Policy
Increased Dividend Policy Increased Dividend Policy to Up to 40% Reflects a 4.6% Annual Dividend Yield Q3 2017 Dividend Payout NIS 328 Million 16
Slide 17: Highlights
Highlights Substantial Increase in Return on Equity from Core Business Efficiency Ratio Improved – Income Up, Expenses Down High Quality Credit Portfolio Leading Digital Banking Transformation In Israel, PEPPER Increased Dividend Policy to up to 40% on a Quarterly Basis 17
Slide 18: Q&A
Q&A
Slide 19: Thank You
THANK YOU
Slide 20: Appendix
APPENDIX
Slide 21: Strong Macro Profile – A Positive for Leumi
Strong Macro Profile – A Positive for Leumi 2016 E2017* E2018* GDP, rate of change, real terms 4.0% 2.9% 4.0% Strong Economic Growth – Positive for Leumi Private Consumption 6.1% 3.3% 4.9% Robust Demographic Fundamentals – Current account surplus, % of GDP 3.8% 3.5% 3.2% Another “Plus” for Leumi Gov
Bank Leumi Le-Israel B.M. — Q3 2017 Earnings Presentation on 6ix