Mizrahi Tefahot Bank Ltd · TASE:MZTF

Mizrahi Tefahot Bank — Q1 2018 Earnings Presentation

29 slides from Mizrahi Tefahot Bank's earnings presentation, March 2018

  1. Slide 1: Financial Statements March 2018

    MIZRAHI TEFAHOT Financial Statements March 2018 Financial Statements 31 December 2008 1

  2. Slide 2: Disclaimer

    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 2018 quarterly reports and/ or immediate reports, as well as the periodic, quarterly and ann

  3. Slide 3: Continuous loan growth

    Continuous loan growth Credit to the public NIS mil 183,628 181,118 171,341 159,204 147,569 138,565 128,651 2012 2013 2014 2015 2016 2017 1Q2018 Q1 2018 Average annual growth rate 7% 3

  4. Slide 4: Credit growth in all segments

    Credit growth in all segments Loans to the public (NIS mil) 31.3.2018 31.3.2017 % of change Housing loans 120,721 115,378 4.6% Households and 20,214 18,689 8.2% Private banking Small and micro 17,184 15,617 10.0% businesses Medium businesses 5,906 4,907 20.4% Large businesses and 15,993 15,342 4.2%

  5. Slide 5: Credit growth in all segments

    Credit growth in all segments Loans to the public (NIS mil) 31.3.2018 31.3.2017 % of change Housing loans 120,721 115,378 4.6% Households and 20,214 18,689 8.2% Private banking Small and micro 17,184 15,617 10.0% businesses Medium businesses 5,906 4,907 20.4% 39,001 42,693 Large businesses and 15,99

  6. Slide 6: Double digit average annual growth in credit to small, micro and medium businesses

    Double digit average annual growth rate in credit to small and micro businesses and medium business since the beginning of the new strategic plan Credit to small and micro business Credit to medium business (NIS mil) (NIS mil) Average annual Average annual growth rate of 10.9% growth rate of 14.6% 5

  7. Slide 7: … and in line with the strategic plan

    … and in line with the strategic plan Market share – small and micro business Market share – business segments Market share – medium business * According to supervisory operating segments, % out of 5 major banking groups ** Source: financial reports of the 5 banking groups *** In accordance with UMT

  8. Slide 8: Continuous deposit growth

    Continuous deposit growth Deposits from the public NIS mil 187,066 183,573 178,252 162,380 152,379 141,244 128,081 2012 2013 2014 2015 2016 2017 1Q2018 Q1 2018 Average annual growth rate 7.5% 8

  9. Slide 9: Financing revenues from current operations continue to grow

    Financing revenues from current operations continue to grow (NIS m) 1,136 1,124 1,095 1,067 1,047 1,018 990 946 922 909 898 854 849 1Q2015 2Q2015 3Q2015 4Q2015 1Q2016 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 3Q2017 4Q2017 1Q2018 9

  10. Slide 10: Growth in financing revenues in all business segments

    Growth in financing revenues in all business segments )Financing revenues (NIS m Q1 2018 Q1 2017 of change % Housing loans 357 304 17.4% Households and private banking 324 294 10.2% Small and micro businesses 232 205 13.2% Medium businesses 58 48 20.8% Large businesses and institutional investors 15

  11. Slide 11: Mortgages – balance and revenues

    Mortgages –balance and revenues* 307 310 284 275 262 249 244 235 215 Total balance Total interest revenues, net (average)(NIS, bil) (NIS, mil) * Operating segments in conformity with management approach. Note 12 to quarterly reports 11

  12. Slide 12: Growth in net profit and financing revenues from current operations

    Growth in net profit and financing revenues from current operations Net profit Financing revenues from 343 current operations 1,136 6.9% 8.5% 321 1,047 1Q2017 1Q2018 1Q2017 1Q2018 12

  13. Slide 13: After new IT system implementation, Yahav bank presents strong business results

    After new IT system successful implementation, Yahav bank presents strong business results 78% 77.3% 9.7% 10% 77% 76.6% 76.2% 9% 76% 75.5% 8% 75% 7.4% 7.1% 7.1% 7% 74% 6.2% 73.1% 6% 73% 72% 5% 71% 4% 2014 *2015 2016 2017 1Q2018 Q1 2018 ‫להון‬ ROE ‫תשואה‬ ‫יעילות‬ ‫ יחס‬ratio Cost/income * 2015 resul

  14. Slide 14: Financial assets administration services

    Progress in one of the three main strategic plan pillars - becoming a significant financial assets administrator in the system Financial assets administration services Segment 31.3.2018 31.3.2017 % of change Provident funds operation 79,544 76,580 3.9% Trustee assets 79,681 72,363 10.1% Mutual funds

  15. Slide 15: Increasing equity base

    Increasing equity base (NIS mil) Average annual growth rate 9.3% 13,890 13,685 12,714 11,847 10,797 9,681 8,730 2012 2013 2014 2015 2016 2017 1Q2018 Q1 2018 15

  16. Slide 16: Double digit ROE despite dramatic increase in equity and low interest rate

    Double digit ROE despite dramatic increase in equity and extremely low interest rate Equity ROE (NIS mil) 13,890 16% 13,685 14,000 12,714 14% 13.1% 13,000 11.8% 11,847 12% 2% 10.6% 10.2% 10.2% 10.3% 12,000 10% 10.0% 11,000 8% 10,797 9,681 10,000 6% 8,730 9,000 4% 1% 2% 0.25% 8,000 0% 0.1% 0.1% 0.1%

  17. Slide 17: Dividend

    Dividend Dividend distribution for the relevant period (NIS mil) 404 190 122 137 120 75 2010 2011 2012 2013 2014 2015 2016 2017 1Q2018 Q1 2018 17

  18. Slide 18: Financial results

    oo MIZRAHI TEFAHOT Financial results 18

  19. Slide 19: Net profit (NIS mil)

    Net profit (NIS mil) 400 365 343 321 261 Q1 Q2 Q3 Q4 Q1 2017 2018 19

  20. Slide 20: Net profit - ROE

    Net profit - ROE 12.7% 11.2% 10.4% 10.3% (1)8.0% Q1 Q2 Q3 Q4 Q1 2017 2018 20

  21. Slide 21: Equity (NIS mil)

    Equity (NIS mil) 13,685 13,890 13,015 31.3.2017 31.12.2017 31.3.2018 21

  22. Slide 22: Loans to the public (NIS bil)

    Loans to the public (NIS bil) 181.1 183.6 171.3 159.2 147.6 31.12.2014 31.12.2015 31.12.2016 31.12.2017 31.3.2018 22

  23. Slide 23: Deposits from the public (NIS bil)

    Deposits from the public (NIS bil) 187.0 183.6 178.2 162.4 152.4 31.12.2014 31.12.2015 31.12.2016 31.12.2017 31.3.2018 23

  24. Slide 24: Financing Revenues (NIS mil)

    Financing Revenues (NIS mil) Rate of Q1/2017 Q1/2018 change Interest revenues, net 1,027 1,081 Non-interest financing revenues )1( 90 Total financing revenues 1,026 1,171 14.1 Less: Linkage differentials with respect to CPI position )21( )39( Revenues from collection of interest on troubled debt 13

  25. Slide 25: Commissions (NIS mil)

    Commissions (NIS mil) 357 362 Q1-2017 Q1-2018 25

  26. Slide 26: Provisions / loans to the public

    Provisions / loans to the public 0.18% 0.12% Q1 Q1 2017 2018 26

  27. Slide 27: Cost / income ratio

    Cost / income ratio 67.2 59.0 58.7 59.1 56.3 Q1 Q2 Q3 Q4 Q1 2017 2018 27

  28. Slide 28: Capital adequacy

    Capital adequacy 13.94% 13.44% 13.54% Total Ratio 10.12% 10.20% 10.16% Tier I 31.3.2017 31.12.2017 31.3.2018 28

  29. Slide 29: Dividend (NIS mil)

    Dividend (NIS mil) 404 190 137 2016 2017 Q1/2018 29

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