Mizrahi Tefahot Bank Ltd · TASE:MZTF
Mizrahi Tefahot Bank — Q2 2024 Earnings Presentation
15 slides from Mizrahi Tefahot Bank's earnings presentation, August 2024
Slide 1: Financial statements June 30, 2024
Financial statements June 30, 2024 0
Slide 2: Disclaimer
Q1/24 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 2024 quarterly reports and/ or immediate reports, as well as the periodic, quarterly
Slide 3: Macro environment
Q2/24 Macro environment Unemployment rate)1( GDP growth Bank of Israel interest rate and inflation Known CPI – monthly change 1 year OTC inflation expectation 2.82% )4( (1) Broad Unemployment Rate (general definition of unemployed, unemployed that ceased working due to dismissal or closing of their
Slide 4: Overview of Mizrahi-Tefahot
Q2/24 Overview of Mizrahi-Tefahot Leading Israeli Bank NIS 462bn NIS 338bn NIS 374bn Total Assets1 Net Loans to the public1 Deposits from the public1 NIS 5.9bn NIS 7.4bn NIS 2.7bn Net Interest Revenue2 Total Revenue2 Net Profit2 NIS 35.8bn >7,100 206 Market Cap3 Employees4 Branches4 Significant Mark
Slide 5: Financial Highlights
Q2/24 Financial Highlights Total Assets (NISbn) Net Loans to the Public (NISbn) Deposits from the Public (NISbn) 6.0% 8.4% 374 462 7.6% 338 Balance Sheet 325 359 448 Growth Dec-23 Jun-24 Dec-23 Jun-24 Dec-23 Jun-24 Cost/Income Ratio Return on Equity 38.1% 37.7% 22.0% 35.1% 34.6% 19.1% 19.9% Profitab
Slide 6: The effect of Iron Swords war events
Q2/24 The effect of Iron Swords war events • On October 7, 2023, the Iron Swords war was declared following a sudden murderous rampage into settlements close to the Gaza Strip border. This was concurrently with the start of military escalation on the Northern border. • The Bank is prepared to contin
Slide 7: Loan balance with changes to terms and conditions of debt due to the war
Q2/24 Loan balance with changes to terms and conditions of debt due to the war (NIS mil) Loan balance with changes Loan balance with changes to Loan balance with changes Total credit to this to terms and conditions of terms and conditions of debt to terms and conditions of (1) segment debt as of 30.
Slide 8: Asset quality (NIS mil)
Q2/24 Asset quality (NIS mil) Segment 1-6/2024 1-6/2023 Q2/2024 Q2/2023 Provisions / loans to the public Rate of Rate of Rate of Rate of Provision Provision Provision Provision provision provision provision provision Housing loans 34 0.03% 63 0.06% 12 0.02% 21 0.04% 0.31% Business 176 0.36% 268 0.61
Slide 9: Profitability and efficiency
Q2/24 Profitability and efficiency Net profit (NIS mil) Return on equity Cost/income ratio 22.0% 38.1% 1,452 19.9% 1,398 34.6% Q2/2023 Q2/2024 Q2/2023 Q2/2024 Q2/2023 Q2/2024 2,765 2,724 22.2% 19.0% 37.8% 35.1% 1-6/2023 1-6/2024 1-6/2023 1-6/2024 1-6/2023 1-6/2024 8
Slide 10: Continuous loan growth
Q2/24 Continuous loan growth (NIS bil) Credit to the public(1) 338 307 325 Business 271 30.6.24 31.12.23 % change 246 segment Housing loans 212.2 205.4 6.6 194 205 159 171 181 221 Households + 27.1 26.9 1.5 private banking Total individuals 239.3 232.3 6.0 (2) Total businesses 98.4 93.0 11.5 Total 3
Slide 11: Continuous deposit growth
Q2/24 Continuous deposit growth (NIS bil) Deposits from the public (NIS bil) Core deposits(1) (NIS bil) 221 232 237 374 194 206 359 127 137 345 96 106 114 168 308 284 211 247 199 178 184 162 Deposits by segments Segment 136.5 166.2 House holds and Private banking 37% 44% Small and micro businesses 1
Slide 12: Financing revenues from current operations
Q2/24 Financing revenues from current operations From Q4/2020 including Union Bank. NIS mil Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Interest revenues, net 3,146 3,181 2,959 2,689 2,685 3,220 Non-interest financing revenues 87 250 341 )167( 345 26 Total financing revenues 3,233 3,431 3,300 2,
Slide 13: Expenses
Q2/24 Expenses Operating and other expenses (NIS mil) Salaries (NIS mil) 2,958 2,607 1,940 1,724 1-6/2023 1-6/2024 1-6/2023 1-6/2024 1,521 1,392 1,328 1,009 886 868 Q2/2023 2023 quarterly Q2/2024 Q2/2023 2023 quarterly Q2/2024 average average 12
Slide 14: Equity, capital adequacy and dividend
Q2/24 Equity, capital adequacy and dividend Equity (NIS mil) Leverage ratio 5.99% 29,464 5.83% 27,461 31.12.23 30.6.24 31.12.2023 30.6.2024 Capital adequacy (1)(2) Dividend (NIS mil) 1,273 13.64% 1,024 995 13.36% 737 581 483 509 404 10.32% 10.44% 120 190 75 122 137 31.12.23 30.6.24 (3) BoI minimum 1
Slide 15: Thank you
Thank you 14