Bank Leumi Le-israel B.m. · TASE:LUMI

Bank Leumi Le-israel B.m — Q1 2020 Earnings Presentation

16 slides from Bank Leumi Le-israel B.m's earnings presentation, 2020

  1. Slide 1: Q1 2020 Results Presentation

    Q1 2020 RESULTS PRESENTATION

  2. 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

  3. Slide 3: COVID-19 in Israel – Stabilizers Introduced by the Government and BOI

    COVID-19 in Israel – Stabilizers Introduced by the Government and BOI • Relatively low sick and death rate • Approximately 17,000 cases • Approximately 2,000 active cases, and Coronavirus in Israel • Less than 300 deaths to date • Lockdown lift begun towards the end of April 2020 • Currently almost

  4. Slide 4: COVID-19 – Protecting Health and Safety of Employees and Customers

    COVID-19 – Protecting Health and Safety of Employees and Customers, while Continuing to Provide Service and Support Remote Service & Digital Adoption • A Leap in Digital Adoption by Customers across Business Lines • Immediate Migration to Working Remotely, Across Business Lines • Tailored Solutions

  5. Slide 5: Macroeconomic Factors and Indicators

    Macroeconomic Factors and Indicators Young and Growing Population GDP, Rate of Change, Real Terms BOI estimates (May 25 2020) 6.8% • Young Population - Median Age at 30 4.0% 3.6% 3.4% 3.5% • Population Growing at 2% Per Year -4.5% 2016 2017 2018 2019 E2020 E2021 CPI Unemployment, Annual Average, Age

  6. Slide 6: Q1 2020 vs. Q1 2019

    Q1 2020 vs. Q1 2019 Income Statement The COVID-19 Impact Q1 2020 Q1 2019* Net Interest Income 2,169 2,120 Considerable Increase Non-Indicative Financial in Loan Loss Expenses, Ratios: Loan Loss Expenses (income) 860 (18) Primarily in Collective NII after Loan Losses Expenses 1,309 2,138 Provisions L

  7. Slide 7: Q1 2019 to Q1 2020 – Breakdown of Income and Expenses

    Q1 2019 to Q1 2020 – Breakdown of Income and Expenses Finance Income Loan Loss Expenses NIM Total LLP NPL 2,169 2.07% 1.2% 0.74% 2,120 756 Total LLP (0.03%) 351 106 104 -124 Q1 2019* Q1 2020 -660 Q1 2019 Q1 2020 Net Interest Income Non-interest Financing Income Specific Collective Fees, Commissions

  8. Slide 8: Loan Loss Expenses Breakdown and Evolvement

    Loan Loss Expenses Breakdown and Evolvement Q1 2018 through Q1 2020 Total LLP 1.2% 756 261 194 198 215 106 113 116 57 0 73 68 104 42 (64) (71) (56) (124) Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Specific Collective (NIS Millions) 8

  9. Slide 9: Fees and Commissions Performance Year-over-Year

    Fees and Commissions Performance Year-over-Year 10.4% 893 809 198 179 180 175 172 160 137 133 121 91 85 71 Q1 Q1 Securities Financing Account Exchange Credit Cards Other Fees 2019 2020 Transactions Transactions Management Differentials Q1 2019 Q1 2020 (NIS Millions) 9

  10. Slide 10: Q1 Expenses and Efficiency Ratio

    Q1 Expenses and Efficiency Ratio Expenses 7.3% Total Salary & 1,946 Related Expenses 1,803 1,136 935 Maintenance & Depreciation Expenses and Others 868 810 Q1 2019 Q1 2020 (NIS Millions)

  11. Slide 11: Loan Growth in Line with Strategy

    Loan Growth in Line with Strategy Total Middle-Market 6.1% 6.2% 4.3% 294.5 41.8 40.7 282.5 39.4 277.5 Q1 2019 Q4 2019 Q1 2020 Q1 2019 Q4 2019 Q1 2020 Mortgages Corporate 5.7% 15.6% 14.2% 73.2 85.4 86.6 82.0 63.4 64.1 Q1 2019 Q4 2019 Q1 2020 Q1 2019 Q4 2019 Q1 2020 (NIS Billions) Corporate includes C

  12. Slide 12: Solid and Diverse Deposit Base. Conservative, Well-funded Portfolio

    Solid and Diverse Deposit Base. Conservative, Well-funded Portfolio 419 400.0 363 365 374 Deposits from the Public March 31, 2020 347 350.0 329 303 Retail 100% 300.0 286 6% 84% Small Businesses 20% 250.0 70% 42% Commerical Corporate & Real 8% Estate 200.0 Capital Markets 14% 10% Subsidiaries 150.0 1

  13. Slide 13: Capital Regulatory Easement and Requirements

    Capital Regulatory Easement and Requirements Capital Requirement– Regulatory Easement • CET1 – reduced from 10.25% to 9.25% • TCR – reduced from 13.75% to 12.75% • Back to original requirement by September 30, 2022 Dividends • Distribution plan implementation put on hold Buyback • 1st stage - NIS 25

  14. Slide 14: Solid Capital and Leverage Ratios

    Solid Capital and Leverage Ratios CET1 Total Capital Ratio Minimum internal Minimum regulatory threshold: 9.50% requirement: 12.75% 11.43% 11.88% 15.67% 10.84% 14.99% 15.02% 9.58% 13.74% 10.25% 10.27% 9.10% 9.25% 13.75% 13.77% 12.50% 12.75% 2015 2017 2019 Q1 2020* 2015 2017 2019 Q1 2020* CET1 Ratio

  15. Slide 15: Q&A

    Q&A

  16. Slide 16: Thank You

    THANK YOU

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