Bank Leumi Le-israel B.m. · TASE:LUMI
Bank Leumi Le-israel B.m — Q3 2024 Earnings Presentation
17 slides from Bank Leumi Le-israel B.m's earnings presentation, November 2024
Slide 1: Q3 2024 Financial results presentation
Q3 2024 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 Q3 2024 9M 2024 FY 2023 Net Income 2,293 7,347 7,027 ROE 15.5% 17.1% 13.7% Cost Income Ratio 31.1% 29.6% 32.6% Credit Loss Expense Ratio 0.28% 0.16% 0.58% Q-o-Q YTD Y-o-Y Net Loan Growth 3.0% 6.5% 9.0% Q-o-Q YTD Y-o-Y BVPS Growth 3.8% 11.6% 11.7% (
Slide 4: Q3 2024 vs. Q3 2023 – Breakdown of Income and Expenses
Q3 2024 vs. Q3 2023 – Breakdown of Income and Expenses ↗︎ Finance Income ↗︎ Operating and Other Expenses 3.0% 4,499 (0.3%) 4,370 1,722 1,716 1,010 1,048 4,545 3,935 15.5% Q3 2023 Q3 2024 CPI 0.8% CPI 1.6% 712 668 NIM 2.5% 435 NIM 2.7% -46 Q3 2023 Q3 2024 Q3 2023 Q3 2024 Net Interest Income Non-inter
Slide 5: 9m 2024 vs. 9m 2023 – Breakdown of Income and Expenses
9m 2024 vs. 9m 2023 – Breakdown of Income and Expenses ↗︎ Finance Income ↗︎ Operating and Other Expenses 5.6% 13,090 13,824 3.1% 5,034 5,192 12,147 4.5% 12,690 3,142 3,275 9M 2023 9M 2024 CPI 3.2% CPI 3.5% NIM 2.6% NIM 2.5% 1,892 1,917 943 1,134 9M 2023 9M 2024 9M 2023 9M 2024 Net Interest Income No
Slide 6: Net Interest Income and NIM
Net Interest Income and NIM 2.73% 2.51% 2.61% 2.40% 2.22% Reported NIM 2.31% 2.36% 2.33% 2.14% 2.22% NIM ex. CPI 4,378 4,545 3,935 3,850 3,767 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 (NIS Millions) 6
Slide 7: Fees and Commissions Performance Year-over-Year
7 Fees and Commissions Performance Year-over-Year 1.0% 2,801 2,829 780 750 469 478 2.2% 435 440 450 452 385 366 984 307 318 963 Q3 Q3 9M 9M Financing Account Securities Exchange Credit Cards Other Fees 2023 2024 2023 2024 Transactions Management Transactions Differentials 9M 2023 9M 2024 (NIS Millio
Slide 8: Multi-year decline in cost-income ratio
Multi-year decline in cost-income ratio 57.9% 53.2% 45.8% 37.2% 32.6% 29.6% 2019 2020 2021 2022 2023 9M 2024 Leumi cost income ratio for 2019 is net of the effect of Leumi Card and for 2019-2022 excludes Leumi USA. 8
Slide 9: Stable loan loss expenses, with negligible specific provisions
Stable loan loss expenses, With negligible specific provisions ↗︎ Loan loss expenses 0.95% 0.83% 9M 2024: 0.16% 869 0.63% 0.21% 0.28% 0.45% 476 0.36% 0.34% 378 (0.02%) 375 0.18% 0.12% 192 0.06% 122 (0.15%) (0.08%) (0.06%) (156) (86) 68 (63) Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 (NIS Millions) Spec
Slide 10: Credit quality improved in the quarter
Credit quality improved in the quarter Higher provisions and coverage despite lower NPLs ↗︎ NPLs ↗︎ Troubled Debts ↗︎ Total Provisions 1.78% 1.58% 1.54% 1.50% 1.44% 1.28% 0.85% NIS Bn 6.7 6.8 0.49% 0.52% 5.0 NISbn 1.9 3.6 2.4 NISbn 6.0 7.6 6.5 6.5 2022 2023 9M 2024 2022 2023 9M 2024 2022 2023 9M 202
Slide 11: Credit growth in target segments
Credit growth in target segments ↗︎ Total Loans ↗︎ Mortgages 142.7 6.5% 447.0 8.0% 419.5 132.1 2023 9M 2024 2023 9M 2024 ↗︎ Middle-Market ↗︎ Corporate 64.6 135.8 3.2% 6.6% 62.6 127.4 2023 9M 2024 2023 9M 2024 (NIS Billions) 11 Corporate includes Corporate and Real-Estate. The growth is mainly from R
Slide 12: Expanding and diversifying deposit base
Expanding and diversifying deposit base ↗︎ Core Deposits ↗︎ Diversified deposit base 226.0 4.2% Capital Private 216.9 Markets Individuals 29.1% 38.4% 2023 9M 2024 Corporate and Real Deposits from the Public ↗︎ Deposits and Loan to Deposits Estate Loan / deposit ratio 8.0% Commercial Small 557.1 567.
Slide 13: Solid capital and leverage ratios
Solid capital and leverage ratios ↗︎ CET1 Ratio ↗︎ Total Capital Ratio ↗︎ TCE and Leverage Ratios Capital Buffer (NIS Billions) 14.72% 14.77% TCE / Total Assets 5.3 6.7 9.1 14.29% 8.2% 7.4% 7.7% 12.07% 13.50% 13.50% 13.50% 11.66% 11.46% 6.65% 7.01% 6.36% 5.5% 5.5% 5.5% 10.21% 10.22% 10.23% 2022 2023
Slide 14: High shareholder returns via dividends and buybacks
14 High shareholder returns via dividends and buybacks ↗︎ Capital Return ▪ NIS 2.9 Billion capital return in 9M 2024 is higher than total 33% 40% 40% capital return for FY 2023. 2,348 ▪ Payout in 9M 2024 is equal to a 40% payout ratio and is made 1,748 2,930 up of a NIS 2.2 Billion dividend and a NI
Slide 15: Investment highlights
Investment highlights 1 Strong and consistent high ROE despite challenging economic backdrop 2 Operating leverage from best-in-class cost income ratio 3 Strong credit quality – income from specific provisions, low NPLs, low problematic debts 4 Strong capital position supporting growth and capital re
Slide 16: Slower growth in 2024
Slower growth in 2024 Underlying fundamentals remain strong GDP (Real GDP Growth) Inflation above BOI target range (Inflation Evolution) Israel 5.3% OECD 3.7% 3.5% 9.3% 3.0% 2.8% 6.4% 6.0% 3.8% 3.9% 1.8% 3.0% 2.0% 1.7% 1.7% 1.8% 0.6% 0.6% -0.7% -1.5% -4.2% 2019 2020 2021 2022 2023 2024E 2025E 2019 2
Slide 17: Thank you / Q&A
Q3 2024 Results presentation Thank you / Q&A 17
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