Bank Leumi Le-israel B.m. · TASE:LUMI
Bank Leumi Le-israel B.m — Q1 2024 Earnings Presentation
16 slides from Bank Leumi Le-israel B.m's earnings presentation, May 2024
Slide 1: Q1 2024 Financial results presentation
Q1 2024 Financial results presentation
Slide 2: Disclaimer
Disclaimer This document and the information contained herein – The conference call does not replace the need to review the 1. Has been prepared by Bank Leumi le-Israel B.M. (the “Bank”) solely for the purpose of presenting the Bank's business; latest periodic / quarterly reports in 2. Is provided s
Slide 3: Strong underlying performance
Strong underlying performance Key financial metrics Q1 2024 Q1 2023 FY 2023 Net Income 2,785 981 7,027 ROE 20.2% 7.8% 13.7% Cost Income Ratio 29.0% 32.6% 32.6% Credit Loss Expenses 0.21% 0.41% 0.58% Q-o-Q Q-o-Q Y-o-Y Net Loan Growth 2.2% 4.9% 9.0% Q-o-Q Q-o-Q Y-o-Y Core Deposit Growth 2.0% 3.2% 6.9%
Slide 4: High and stable profits and ROE over a sustained period
High and stable profits and ROE over a sustained period 17.0% 20.2% 19.4% 13.6% 13.8% 15.0% 13.7% 7.8% 7.7 7.0 2.8 2.5 6.0 1.8 1.8 1.0 2021 2022 2023 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 (NIS Billions) 4 Excluding the NIS 1.1 billion impairment of the Valley stake, Adjusted net income and ROE were NIS 2.1
Slide 5: Q1 2024 vs. Q1 2023 – Breakdown of Income and Expenses
Q1 2024 vs. Q1 2023 – Breakdown of Income and Expenses ↗︎ Finance Income 13.9% ↗︎ Operating and Other Expenses 4,501 3,953 12.0% 1,825 3,928 3,767 1,629 (4.1%) 1,218 1,056 Q1 2023 734 Q1 2024 CPI 1.1% CPI 0.3% NIM 2.59% 25 NIM 2.22% 573 607 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Net Interest Income Non-int
Slide 6: Pick-up in credit growth
Pick-up in credit growth ↗︎ Quarterly ↗︎ Development of Deposits Total Loans ↗︎ Loan Breakdown by Segment 6.1% Other Private Capital Markets 3.6% Individuals 428.6 6.8% 6.9% 419.5 403.8 Real Estate 2.2% 15.8% Mortgages 31.3% Corporate 14.6% Small Commercial Businesses Q1 2023 Q4 2023 Q1 2024 14.8% 6
Slide 7: Credit growth in target segments
Credit growth in target segments ↗︎ Total Loans ↗︎ Mortgages 428.6 134.3 2.2% 1.7% 419.5 132.1 Q4 2023 Q1 2024 Q4 2023 Q1 2024 ↗︎ Middle-Market ↗︎ Corporate 63.3 130.2 1.1% 2.2% 62.6 127.4 Q4 2023 Q1 2024 Q4 2023 Q1 2024 (NIS Billions) 7 Corporate includes Corporate and Real-Estate. The growth is ma
Slide 8: Expanding and diversifying deposit base
Expanding and diversifying deposit base ↗︎ Core Deposits ↗︎ Diversified deposit base 221.2 2.0% Capital Private 216.9 Markets Individuals 29.6% 37.1% Q4 2023 Q1 2024 Corporate Deposits from the Public and Real ↗︎ Deposits and Loan to Deposits Estate Loan / deposit ratio 9.1% Small Commercial Busines
Slide 9: Multi-year decline in cost-income ratio
Multi-year decline in cost-income ratio 57.9% 53.2% 45.8% 37.2% 32.6% 29.0% 2019 2020 2021 2022 2023 Q1 2024 Leumi cost income ratio for 2019 is net of the effect of Leumi Card and excludes Leumi USA and for 2020-2022 excludes Leumi USA. 9
Slide 10: Low provisions reflect high quality credit portfolio
Low provisions reflect high quality credit portfolio ↗︎ Loan loss expenses 0.95% 0.83% 869 0.63% 0.41% 0.21% 0.31% 0.45% 0.39% 0.36% 476 0.29% 389 378 299 0.18% 0.12% 0.02% 0.02% 192 (0.15%) 122 17 19 (156) Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Specific Collective (NIS Millions) 10
Slide 11: Credit quality improved in the quarter
Credit quality improved in the quarter Higher provisions and coverage despite lower NPLs ↗︎ NPLs ↗︎ Troubled Debts ↗︎ Total Provisions 1.85% 1.58% 1.60% 1.78% 1.61% 1.30% 1.28% 1.54% 0.85% 6.7 7.0 0.75% NIS Bn 0.65% 5.0 4.5 0.49% 2021 2022 2023 Q1 2024 2021 2022 2023 Q1 2024 2021 2022 2023 Q1 2024 R
Slide 12: Solid capital and leverage ratios
Solid capital and leverage ratios ↗︎ CET1 Ratio ↗︎ Total Capital Ratio ↗︎ TCE and Leverage Ratios 15.02% 14.72% TCE / Total Assets 14.29% 7.4% 7.7% 7.8% 11.98% 11.66% 13.50% 13.50% 13.50% 11.46% 6.36% 6.65% 6.70% 10.21% 10.22% 10.23% 5.5% 5.5% 5.5% 2022 2023 Q1 2024 2022 2023 Q1 2024 2022 2023 Q1 20
Slide 13: High share returns via dividends and buybacks
13 High share returns via dividends and buybacks ↗︎ Capital Return ▪ NIS 835m dividend payout for Q1 2024 and a NIS 1 billion 23% 33% 40% share buyback for FY 2024. The first tranche of the buyback is 2,348 NIS 280m. 1,775 1,748 ▪ Total capital return for Q1 2024 is NIS 1.1bn equal to a 40% 1,115 pa
Slide 14: Investment highlights
Investment highlights 1 Strong and consistent high ROE despite challenging economic backdrop 2 Long-term asset growth driving higher revenues and profitability 3 Operating leverage from best-in-class cost income ratio 4 Strong credit quality – income from specific provisions, low NPLs, low problemat
Slide 15: Slower growth in 2024
Slower growth in 2024 Economic fundamentals remain strong GDP impact in 2024 (Real GDP Growth) Inflation slowing (Inflation Evolution) Israel 5.3% OECD 9.3% 3.0% 2.8% 2.5% 6.5% 2.2% 6.0% 4.9% 3.8% 1.8% 3.0% 2.0% 1.7% 1.4% 1.7% 1.8% 0.6% -0.7% -1.5% -4.2% 2019 2020 2021 2022 2023 2024E 2025E 2019 202
Slide 16: Thank you / Q&A
Results presentation Thank you / Q&A 16
Bank Leumi le-Israel B.M. — Q1 2024 Earnings Presentation on 6ix