Israel Discount Bank Limited Class A · TASE:DSCT
Israel Discount Bank Limited Class A — Q2 2018 Earnings Presentation
20 slides from Israel Discount Bank Limited Class A's earnings presentation, 2018
Slide 1: 2Q18 Financial Results
2018 Financial Results ISRAEL DISCOUNT . BANK ,
Slide 2: Disclaimer
This document has been prepared by Israel Discount Bank Ltd. (the “Bank”) solely for use by the Bank in its presentation of its Q2-18 reports, as well as in strategic updates referred to in the Bank’s reports. The information contained herein may be partial and may include information that has not b
Slide 3: Forward-looking information
This slideshow includes forward-looking information, as defined in the Israeli Securities Law, 5728-1968. Such information as found on pages 4 and 15 of the slideshow includes, among other things, projections, objectives, estimates and assessments of the Bank, which relate to future events or issues
Slide 4: Highlights of 2Q18
Highlights of 2Q18 Disciplined Execution of Strategy Delivered Solid Bottom Line Results Net Income Financial Highlights NIS 423 m (2Q17: NIS 272 m) Net Income was up 55.5% Y-o-Y Credit Loss Expenses were 38.9% lower Y-o-Y ROE Credit to the Public is up 8.5% Y-o-Y, up 1.9% in 2Q18 11.0% (2Q17:
Slide 5: Income Statement Highlights
Income Statement Highlights Income Growth Driving 11% ROE P&L Highlights (NIS m) 2Q18 1Q18 2Q17 Vs.1Q 18 Vs. 2Q 17 Net Interest Income 1,420 1,274 1,304 11.5% 8.9% Credit Loss Expenses 129 112 211 15.2% (38.9%) Fee income 709 703 661 0.9% 7.3% Non-interest and other income 155 110 98 40.9% 58.2% Tot
Slide 6: Solid Balance Sheet Supports Growth
Solid Balance Sheet Supports Growth Total Assets up 0.9%; Total Equity up 2.3% 156.5 183.2 8.5% 153.6 6.8% 181.1 1.9% 1.2% 144.2 171.6 Key Financial Ratios 2Q17 1Q18 2Q18 2Q17 1Q18 2Q18 Credit to the Public, net (NIS Bn) Deposits from the Public (NIS Bn) 2Q 18 1Q 18 2Q 17 Common Tier-1 9.8% 9.8% 9.8
Slide 7: Credit Growth Continues Across all Segments
Credit Growth Continues Across all Segments Improving Credit Book Mix 156.5 12.0% 30.6 153.6 6.9% 28.2 29.5 28.0 3.8% 26.3 0.7% 27.4 8.5% 2Q17 1Q18 2Q18 2Q17 1Q18 2Q18 Consumer credit (NIS Bn) Mortgages (NIS Bn) 144.2 1.9% 31.8 35.2 35.3 6.2% 10.3% 31.3 0.2% 1.6% 30.0 32.0 2Q17 1Q18 2Q18 2Q17 1Q18 2
Slide 8: Income from Banking and Financing Activity Increasing
Income from Banking and Financing Activity Increasing Income from Current Operations is up 5.2% Quarterly Y-o-Y Income From Banking and Financing Activity (NIS m) Change 2,274 +11.3% 9.3% 2,044 2,081 709 +7.3% 0.9% 661 703 163 128 45 5.2% +11.7% 1,333 1,402 1,255 2Q17 1Q18 2Q18 Income from current o
Slide 9: Income from Current Operations Trending Up
Income from Current Operations Trending Up Consistent Growth in Income Generated by Core Banking Activity Current Operations (NIS m) 2.7% Compound quarterly growth rate 1,402 1,319 1,333 1,255 1,270 1,169 1,200 1,197 1,130 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 * Excludes CPI, income from real
Slide 10: Group Expenses
Group Expenses Disciplined Expense Management Remains Top Priority Y-o-Y Total Expenses, Group (NIS m) Change 2.4% 1,503 7.5% 1,468 1,398 394 4.8% 413 14.7% 360 (1.6%) 256 252 (3.1%) 260 818 *2.4% 838 7.7% 778 2Q17 1Q18 2Q18 Salary & Related (reported) Maintenance and dep. Other * 1Q18 salary & rela
Slide 11: Adequate Capital & Liquidity Position
Adequate Capital & Liquidity Position Supporting Future Growth Total Equity (NIS Bn) and Core Tier-1 Capital Ratio Liquidity Coverage Ratio (LCR) Target 9.8 10.0 9.8 10.0 9.4 9.5 137.3% 135.1% 135.0% 16.1 16.8 14.9 13.0 13.6 2014 2015 2016 2017 2Q18 2019 2Q17 1Q18 2Q18 Total Equity CET 1 Ratio Inves
Slide 12: Credit Loss Expenses
Credit Loss Expenses Provisions Remain Below 2017 Average Rate Credit Loss Expenses (NIS m) Group Provisions (NIS m) 2016: 0.34% 2017: 0.39% Long term average range 0.66% 0.4% - 0.5% 0.58% 0.51% 0.42% 0.40% 0.18% 0.08% 0.33% Average Group Provision: NIS 128m 224 0.29% 211 187 157 159 145 143 147 145
Slide 13: Further Decline in Problematic Credit Risk
Further Decline in Problematic Credit Risk Quality Indicators Trending Positively Credit Risk by Classification (NIS B) Credit Quality Indicators 2.0% 4,879 1.5% 1.4% 2Q18 Vs. 2Q17 1.4% 4,296 -772 (15.8%) 4,107 0.8% 0.7% 1,492 1,499 - 71 (4.8%) 1,421 645 2Q17 1Q18 2Q18 2Q17 1Q18 2Q18 630 Impaired+90
Slide 14: Subsidiaries at a Glance
Subsidiaries at a Glance Strong 1H at Mercantile and IDBNY; CAL Beginning to see Fruits of 1H Investments 15.0% USD (m) 13.0% 13.3% 11.7% 11.4% 11.1% 9.6% 77 30 70 7.1% 26 55 6.6% 54 49 15 29 2Q17 1Q18 2Q18 2Q17 1Q18 2Q18 2Q17 1Q18 2Q18 Net income (NIS m) ROE, % Net income (NIS m) ROE, % Net income
Slide 15: Clear Strategy Guides Ahead
Clear Strategy Guides Ahead Main Focus Areas for 2018 Superior customer satisfaction Reached through meeting customers expectations and needs Growth & Efficiency Transforming traditional Developing new banking banking models Invest in driving top line growth Established new division to Further
Slide 16: Appendix
Appendix Investor presentation 16
Slide 17: Improvement of Financial Performance
Improvement of Financial Performance Main P&L Metrics Actual Compared to NIS (m) 2Q18 1Q18 2Q17 1Q18 2Q17 Interest income, net 1,420 1,274 1,304 11.5% 8.9% Credit loss expenses 129 112 211 15.2% (38.9%) Non-interest financing income 145 104 79 39.4% 83.5% Commissions 709 703 661 0.9% 7.3% Other inco
Slide 18: CAL Financial Performance
CAL Financial Performance Main P&L and Balance Sheet Metrics Actual Compared to NIS (m) 2Q18 1Q18 2Q17 1Q18 2Q17 Credit card transactions 300 281 263 6.8% 14.1% Net interest income 117 111 108 5.4% 8.3% Non-interest financing income 0* 4 0* (100%) N/A Total income 417 396 371 5.3% 12.4% Credit loss
Slide 19: IDBNY Financial Performance
IDBNY Financial Performance Main P&L and Balance Sheet Metrics Actual Compared to USD (m) 2Q18 1Q18 2Q17 1Q18 2Q17 Net interest income 61 60 52 2.1% 17.6% Credit loss expenses (0.3) (4.9) 5.1 (93.9%) (105.9%) Non-interest income 15 15 13 (1.7%) 16.3% Operating & other expenses 43 41 39 4.4% 12.2% In
Slide 20: Mercantile Financial Performance
Mercantile Financial Performance Main P&L and Balance Sheet Metrics Actual Compared to NIS (m) 2Q18 1Q18 2Q17 1Q18 2Q17 Net interest income 261 263 256 (0.8%) 2.0% Credit loss expenses 27 14 23 92.9% 17.4% Total Non-interest income 102 98 74 4.1% 37.8% Operating & other expenses 227 230 221 (1.3%) 2