First International Bank Of Israel Ltd · TASE:FIBI
First International Bank Of Israel — The First International Bank of Israel — H1 2023 Earnings Presentation
22 slides from First International Bank Of Israel's earnings presentation, August 2023
Slide 1: Financial Statements as of June 30, 2023
Financial Statements as of June 30, 2023 1 The accessible presentation is available on the First International Bank’s website via the link: https://online.fibi.co.il/wps/portal/FibiMenu/MarketingEN/AnInformation/AnInvestorRelations/AnFinancialStatements/An2023
Slide 2: Disclaimer
Disclaimer Without derogating from the generality of the provisions contained in the Terms of Use as published on the website of The First International Bank of Israel Ltd. (the “Bank” and/ or “FIBI”), this presentation and its contents were prepared by the Bank for its exclusive use as part of the
Slide 3: Net Profit and ROE (NIS millions)
Net Profit and ROE (NIS millions) 22.6% ROE 23.6% 1,218 21.3% 631 587 Net profit 13.8% 13.3% 664 342 Q2.2022 Q1.2023 Q2.2023 1-6.2022 1-6.2023 Tier 1 capital ratio 10.15% 10.55% 10.64% 10.15% 10.64% BOI interest (average) 0.47% 3.92% 4.59% 0.29% 4.25% 3
Slide 4: Principal Information H1.23 (compared to H1.22)
Principal Information H1.23 (compared to H1.22) Profitability . Net profit growth Revenue growth Financing income growth ROE 1,218 84% 3,435 44% 2,672 66% 22.6% 13.3% 1-6.2023 change 1-6.2023 change 1-6.2023 change 1-6.2023 1-6.2022 Growth Growth Credit growth (end of period) Client asset growth (en
Slide 5: Principal Information Q2.23 (compared to Q2.22, Q1.23)
Principal Information Q2.23 (compared to Q2.22, Q1.23) Profitability . Net profit change Revenue growth Financing income growth ROE 587 (7%) 72% 1,735 2% 44% 1,361 3.8% 63% 21.3% 13.8% Compared Compared Compared Compared Compared Compared Q2.23 to Q1.23 to Q2.22 Q2.23 to Q1.23 to Q2.22 Q2.23 Q2.23 Q
Slide 6: Condensed Income Statement 1-6.2023
Condensed Income Statement 1-6.2023 Change (NIS millions) 1-6.2023 1-6.2022 (before taxes) % change Interest income, net 2,593 1,603 990 61.8% Non-Interest financing income 79 12 67 558% Net financing income 2,672 1,615 1,057 65.5% Credit loss expenses (0.29% compared to 0.06% in the corresponding p
Slide 7: Condensed Income Statement (continued) 1-6.2023
Condensed Income Statement (continued) 1-6.2023 Change (NIS millions) 1-6.2023 1-6.2022 (before % change taxes) Total operating and other expenses 1,464 1,346 118 8.8% Salaries and related expenses (including bonuses and special provision) 915 815 100 12.3%* Maintenance and depreciation of premises
Slide 8: Net Financing Income 1-6.2023 (NIS millions)
Net Financing Income 1-6.2023 (NIS millions) Financing income from current activities* Interest and non-interest income (excluding fair value of derivative instruments and investment income) 2,672 2,682 1,615 Interest Income 2,593 1,675 1,603 12 79 Non-interest income 1-6.2022 1-6.2023 1-6.2022 1-6.
Slide 9: Main Commissions H1.2023 compared to H1.2022 (NIS millions)
Main Commissions H1.2023 compared to H1.2022 (NIS millions) 755 756 1-6.2022 1-6.2023 1-6.2023 1-6.2022 389 368 106 110 100 110 58 58 49 52 53 58 Transactions Account Credit cards Conversion differences Commissions on Other commissions in securities management financing activities 9
Slide 10: Credit Portfolio Growth End of period (NIS billions)
Credit Portfolio Growth End of period (NIS billions) 30.6.2023 Private Large customers 120 businesses 20% (incl. institutions) 29% 117 114 Midsize businesses Housing 6% Small & loans micro 29% businesses 16% 30.6.22 31.12.22 30.6.23 High quality, diversified credit- *Total average credit balance inc
Slide 11: Credit Portfolio End of period (NIS billions)
Credit Portfolio End of period (NIS billions) Housing loans Private customers 34.7 35.5 35.3 23.6 23.7 23.3 30.6.22 31.12.22 30.6.23 30.6.22 31.12.22 30.6.23 Large businesses Small & midsize businesses 34.6 29.8 29.2 26.5 28.2 26.7 30.6.22 31.12.22 30.6.23 30.6.22 31.12.22 30.6.23 11
Slide 12: Credit Quality and Credit Loss Expense Rate
Credit Quality and Credit Loss Expense Rate Problematic credit risk (NIS millions) and credit quality indices Individual income and collective expense from credit losses (NIS millions) 30.6.22 30.6.23 0.33% Ratio of provision for credit losses to credit 1.08% 1.23% to the public - allowance buffers
Slide 13: Ratio of expenses (income) from credit losses to average total credit
Ratio of expenses (income) from credit losses to average total credit FIBI’s moderate credit policy resulted in lower provision rates FIBI 4 largest Israeli banks (avg.) 0.76% 0.76% 0.76% 0.43% 0.42% 0.44% 0.36% 0.31% 0.52% 0.30% 0.27% 0.44% 0.22% 0.39% 0.16% 0.13% 0.14% 0.10% 0.11% 0.25% 0.29% 0.18
Slide 14: Public deposits and AUM End of period (NIS billions)
Public deposits and AUM End of period (NIS billions) AUM Public deposits 179 612 165 168 563 560 30.6.22 31.12.22 30.6.23 30.6.22 31.12.22 30.6.23 Rate of non-interest bearing 42% 33% 26% deposits out of total public 14 deposits
Slide 15: Public deposits End of period (NIS billions)
Public deposits End of period (NIS billions) Deposit portfolio Private customers 30.6.23 Private 80 Institutional customers entities 45% 28% 79 78 Large businesses 9% Midsize businesses 4% Small businesses 14% 30.6.22 31.12.22 30.6.23 Diversified deposit portfolio- 59% private 15 customers and small
Slide 16: Financial Strength
Financial Strength Capital attributed to the shareholders of the Bank, and financial ratios – end of period, in NIS billions Positive gap above the Balance 31.12.22 30.6.23 208 regulatory Capital attributed to the shareholders 196 requirement of the Bank 180 168 Tier 1 capital ratio 10.42% 1.40% 10.
Slide 17: Net Changes in Tier 1 Capital Ratio (H1.2023)
Net Changes in Tier 1 Capital Ratio (H1.2023) 10.42% (0.52%) 10.64% 1.14% (0.46%) Net profit 0.01% 0.05% 31.12.22 Growth in risk assets 30.6.23 Dividend Net change in Net change in adjustments of non-controlling rights (Massad) available-for-sale bonds to fair value 17
Slide 18: High Dividend Yield (NIS millions)
High Dividend Yield (NIS millions) 6.8% 6.22% 4.4% 4.5% 945 1.5% 545 410 488 125 2019 2020 2021 2022 30.6.2023 Since the Bank’s policy calls for an annual distribution of up to 50% of annual net income, and mainly in light of the current uncertainty in Israeli and global markets, on August 15, 2023,
Slide 19: Securities Portfolio
Securities Portfolio 30.6.23 31.12.22 Book value Book value % Duration % Duration Change % (NIS millions) (NIS millions) A . Bonds held to maturity 3,415 3.40 15% 3,138 3.67 20% 9% Of which: Israel government (95%) 3,251 3.40 14% 2,941 3.64 18% 11% B . Bonds available for sale 18,723 1.46 82% 12,401
Slide 20: Key Highlights- H1.23 compared H1.22
Key Highlights- H1.23 compared H1.22 . Low NPL (0.49%) Ratio of provision for credit losses to the balance of non-accruing credit to the public – 238% increase in allowance buffers– increase in ratio of 6 1 ROE- 22.6% the provision for credit losses to credit to the public up from 1.08% on 30.6.22 t
Slide 21: Thank You
21 Thank You
Slide 22: Strengths
Leadership in capital market services Leadership and focus on retail banking, including growing niches No. 1 in trading volumes on the TASE Management of a client asset portfolio of NIS 612 By providing high-quality retail service to all clients, billion (securities and deposits) including high-net-
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