Bank Leumi Le-israel B.m. · TASE:LUMI
Bank Leumi Le-israel B.m — Q2 2023 Earnings Presentation
17 slides from Bank Leumi Le-israel B.m's earnings presentation, 2023
Slide 1: Q2 2023 Financial results presentation
Q2 2023 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 Q2 2023 H1 2023 FY 2022 Net Income 2,453 3,434 7,709 ROE 19.4% 13.6% 17.0% Cost Income Ratio 29.5% 31.0% 37.2% Credit Loss Expenses 0.31% 0.36% 0.13% Q-o-Q YTD Y-o-Y Net Loan Growth 1.4% 6.4% 18.4% Q-o-Q YTD Y-o-Y Core Deposit Growth 2.2% 5.4% 9.5%
Slide 4: H1 2023 vs. H1 2022 – Breakdown of Income and Expenses
H1 2023 vs. H1 2022 – Breakdown of Income and Expenses ↗︎ Finance Income ↗︎ Operating and Other Expenses 34.0% 8,720 1.1% 6,506 8,212 3,277 3,312 5,824 1,873 1,760 41.0% H1 2022 H1 2023 CPI 3.1% CPI 2.5% 1,404 1,552 NIM 2.1% 682 508 NIM 2.7% H1 2022 H1 2023 H1 2022 H1 2023 Net Interest Income Non-in
Slide 5: Q2 2023 vs. Q2 2022 – Breakdown of Income and Expenses
Q2 2023 vs. Q2 2022 – Breakdown of Income and Expenses ↗︎ Finance Income 4,767 ↗︎ Operating and Other Expenses 25.0% 4,284 2.6% 3,813 1,641 1,683 3,125 961 915 37.1% Q2 2022 Q2 2023 CPI 1.9% 688 CPI 1.4% 680 768 NIM 2.2% 483 NIM 2.8% Q2 2022 Q2 2023 Q2 2022 Q2 2023 Net Interest Income Non-interest F
Slide 6: Rising Net Interest Income and NIM
Rising Net Interest Income and NIM 2.79% 2.59% 2.44% 2.30% 2.15% 4,284 ~37% y-o-y 3,773 3,928 increase in Net 3,125 3,414 Interest Income Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 (NIS Millions) 6
Slide 7: Fees and Commissions Performance Year-over-Year
7 Fees and Commissions Performance Year-over-Year 4.8% 1,838 1,754 448 372 2.1% 337 346 313 291 295 299 872 890 261 242 202 186 Q2 Q2 H1 H1 Financing Account Securities Exchange Credit Cards Other Fees 2022 2023 2022 2023 Transactions Management Transactions Differentials H1 2022 H1 2023 (NIS Millio
Slide 8: Consistent Improvement in Cost Structure
Consistent Improvement in Cost Structure ↗︎ Total Expenses ↗︎ Cost-Income Ratio 1.1% 3,277 3,312 1,873 1,760 39.7% Total Salary & 2.6% Related Expenses 1,641 1,683 35.0% 961 915 Maintenance, 1,552 31.0% Depreciation & 1,404 29.5% Other Expenses 768 680 H1 2022 H1 2023 Q2 2022 Q2 2023 H1 2022 H1 2023
Slide 9: Stable loan loss expenses
Stable loan loss expenses, With negligible specific provisions H1 2023: 0.36% ↗︎ Loan loss expenses 0.41% 0.32% 0.39% 0.31% 0.14% 0.11% 0.34% 389 0.29% 334 0.26% 0.25% 299 237 233 0.02% 0.02% (0.12%) (0.14%) (0.02%) (111) (134) 17 19 (21) Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Specific Collective (
Slide 10: While credit quality indicators remain robust
While credit quality indicators remain robust ↗︎ NPL Ratio ↗︎ Total Provisions / NPLs ↗︎ Total Provisions / Gross Loans Total troubled debts to gross loans to the public 261% 1.96% 1.32% 1.85% 1.54% 1.71% 1.28% 5.5 226% 1.30% 5.0 4.5 1.16% 0.75% 0.75% 3.3 174% 0.58% 0.49% 155% 2019 2021 2022 H1 2023
Slide 11: Loan growth in-line with strategy
Loan growth in-line with strategy ↗︎ Total Loans ↗︎ Middle-Market 409.6 64.1 6.4% 5.4% 60.8 384.8 Q4 2022 H1 2023 Q4 2022 H1 2023 ↗︎ Mortgages ↗︎ Corporate 125.6 125.3 3.9% 14.4% 120.9 109.5 Q4 2022 H1 2023 Q4 2022 H1 2023 11 (NIS Billions) Corporate includes Corporate and Real-Estate. The growth is
Slide 12: Expanding and diversifying deposit base
Expanding and diversifying deposit base ↗︎ Core Deposits (in Israel) ↗︎ Diversified deposit base 5.4% 214.1 Capital 203.0 Markets 9.7% 25% Private 195.1 Individuals 40% Corporate Q2 2022 Q4 2022 H1 2023 and Real Estate 8% Deposits from the Public ↗︎ Deposits from the public Loan / deposit ratio Comm
Slide 13: Solid capital and leverage ratios
Solid capital and leverage ratios ↗︎ CET1 ↗︎ Total Capital Ratio ↗︎ Leverage Ratio 15.58% 14.21% 14.29% 14.44% 11.87% 11.50% 11.46% 13.50% 13.50% 11.23% 12.50% 12.50% 10.21% 10.20% 9.23% 9.19% 6.57% 6.36% 6.69% 6.06% 5.5% 5.5% 5.5% 5.5% 2020 2021 2022 H1 2023 2020 2021 2022 H1 2023 2020 2021 2022 H1
Slide 14: Investment highlights
Investment highlights 1 2 3 National banking champion with Consistent and strong Best-in-class cost diversified business model and leading in financial performance income ratio digital transformation Pre-tax profit of ~NIS 800m from selling HQ buildings to be recorded in Q4 / Q1 2024 4 5 6 Robust cr
Slide 15: Thank you / Q&A
Q2 2023 Results presentation Thank you / Q&A 15
Slide 16: Appendix
Q2 2023 Results presentation Appendix 16
Slide 17: Israel market macro factors and indicators
Israel market macro factors and indicators Robust economic growth (Real GDP Growth) Rate cycle close to peak (Rates(2) Evolution) 5.38% 5.13% Israel Israel 4.83% 4.75% 4.75% 4.33% 4.25% OECD Fed 8.6% 3.08% 3.25% 5.6% 6.5% 4.0% 3.8% 3.3% 2.4% 2.8% 2.6% 2.00% 1.7% 0.8% 1.4% 1.68% 0.75% 0.33% -2.2% 0.1
Bank Leumi le-Israel B.M. — Q2 2023 Earnings Presentation on 6ix