Bank Leumi Le-israel B.m. · TASE:LUMI
Bank Leumi Le-israel B.m — Q3 2016 Earnings Presentation
19 slides from Bank Leumi Le-israel B.m's earnings presentation, Nov 16, 2016
Slide 1: Leumi Q3 2016 Results Presentation
Leumi Q3 2016 Results Presentation 1 November 16th 2016
Slide 2: The information contained in this presentation
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. The information contained in this presenta
Slide 3: Capital Adequacy
Capital Adequacy NIS billions 31.2 28.8 15.04% Regulatory Targets1.1.2017: o Tier I Capital Ratio 10.3% 25.8 o Total Capital Ratio 13.8% 24.8 10.86% 24.6 Leumi’s Capital Plan 31.12. 2017: o Tier I Capital Ratio 10.5% 14.87% 14.59% 13.90% 13.74% 9.58% 9.19% 9.09% 8.55% 31.12.2012 31.12.2013 31.12.201
Slide 4: The Israeli Economy
The Israeli Economy o Private consumption continues to lead robust economic growth o Fiscal performance well on track with long-term debt reduction o Highly resilient external account position o Inflation remains very low o Low unemployment; labor force participation continues to rise 2015 2016* 201
Slide 5: Net profit & RoE
Net profit & RoE NIS millions 11.9% 10.7% 2,404 2,348 12.7% 10.4% 919 704 9M 2015 9M 2016 Q3 2015 Q3 2016 5
Slide 6: One-time items (before tax)
One-time items (before tax) NIS millions 9M 2015 9M 2016 Q3 2015 Q3 2016 Income from sale of shares - Israel Corp.* 811* - 289 - Income from sale of shares - Mobileye 288 - - - Income from dividend - Kenon Holdings 130 - 130 - Insurance refund – settlement with overseas 235 235 authorities - - Incom
Slide 7: Net interest income
Net interest income NIS millions Interest margin BoI average interest rate 1.88% 1.77% 0.13% 0.10% 5,659 5,391 1.91% 1.78% 0.10% 0.10% 1,970 1,875 9M 2015 9M 2016 Q3 2015 Q3 2016 7
Slide 8: Net interest income by Operating Segments
Net interest income by Operating Segments NIS millions Total Credit Retail in Israel (including subsidiaries) 5,391 5,659 2,732 2,947 1,875 1,970 924 1,019 9M 2015 9M 2016 Q3 2015 Q3 2016 9M 2015 9M 2016 Q3 2015 Q3 2016 Commercial Middle-Market in Israel Corporate in Israel 667 430 603 384 201 229 1
Slide 9: Low provisions reflect high quality credit portfolio
Low provisions reflect high quality credit portfolio NIS millions 0.51% 1,236 0.30% 6 year average provision rate: 0.18% 734 0.19% 472 0.11% 0.08% 268 199 (0.09%) 171 0 2011 2012 2013 2014 2015 9M 2016 9
Slide 10: Problem debts, NPL ratio
Problem debts, NPL ratio NIS millions NPL Ratio: 2.8% 2.1% 1.7% 1.3% 1.3% 10,931 9,801 9,551 7,928 8,055 55% 39% Impaired 46%% 40% 43% 19% 28% Substandard 16% 18% 14% Special mention 29% 35% 33% 42% 43% 2012 2013 2014 2015 30.09.2016 10
Slide 11: Noninterest income
Noninterest income NIS millions 2,425 Noninterest 1,374 1,545 1,538 1,514 financing 1,344 & other Income 552 549 518 331 1,032 983 44 1,051 1,035 1,013 993 988 989 996 Commissions -52 (52) Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Israel Corp. Mobileye 289 Sale of 288 Visa Europe Kenon
Slide 12: Diverse commission revenue
Diverse commission revenue NIS millions Total 9M 2015: 3,099 Total 9M 2016: 2,973 753 719 766 659 579 537 408 398 243 246 242 232 155 135 Securities Account Credit Cards Credit Conversion Financing Other Fees Transactions* Management Handling differences transactions 12 *Includes financial product d
Slide 13: Operating & Other expenses
Operating & Other expenses NIS millions 9M 2015 9M 2016 Δ% Salaries 2,864 2,853 (0.4) 6,518 Bonus 479 351 (26.7) 6,300 Post-retirement defined and other 873 727 (16.7) benefit expenses Total salary expenses without effect of one-time bonus & 4,216 3,931 (6.8) 4,123 4,024 collective wage agreements O
Slide 14: Credit growth (Credit to the public, net, Bank)
Credit growth (Credit to the public, net, Bank) NIS billions Total Credit Retail in Israel 233.1 231.8 141.0 140.7 223.5 212.6 130.7 120.0 2013 2014 2015 30.9.2016 2013 2014 2015 30.9.2016 Commercial Middle-Market in Israel Corporate in Israel 34.0 59.8 33.6 58.2 31.6 29.1 54.7 51.8 2013 2014 2015 3
Slide 15: Strong liquidity
Strong liquidity NIS billions Deposits and Credits 126% 127% 329 337 261 264 2015 30.9.2016 Deposits of the public Credit to the public, net Deposits / Credits 15
Slide 16: Deposits stable and diverse
Deposits stable and diverse (Deposits of the public, Bank) NIS billions 309.8 302.1 Cap. Markets 57.9 59.5 Corporate 25.0 27.0 & Real Estate 39.5 Commercial 41.6 Retail 187.4 174.0 2015 30.09.2016 16
Slide 17: More efficient retail model with a friendly and intuitive platform
More efficient Greater value for retail model with a customers friendly and intuitive platform Based on the Emphasis on newest and most simplicity, innovative transparency technology and convenience 17
Slide 18: Key Takeaways
Key Takeaways Capital o Tier 1 Capital Ratio: 10.86% o Total Capital Ratio: 15.04% o ROE for 3Q 2016 at 12.7% o Strong credit growth in high ROE segments Performance o High quality credit portfolio: low provisions; low NPL ratio o Diversified revenue mix Leading digital banking in Israel 18
Slide 19: Thank you
Thank you 19
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