Bank Leumi Le-israel B.m. · TASE:LUMI

Bank Leumi Le-israel B.m — Q1 2017 Earnings Presentation

18 slides from Bank Leumi Le-israel B.m's earnings presentation, 2017

  1. Slide 1: Leumi Q1 2017 Results Presentation

    LEUMI Q1 2017 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: Q1 2017 Demonstrates a Strong Start, with underlying ROE at 8.1%

    Q1 2017 Demonstrates a Strong Start, with underlying ROE at 8.1% 8.1% Q1 2016 Q1 2017 622 Financing Income, Net* 1,802 2,027 6.6% Commissions 988 1,018 459 Total Operating & Other Expenses 1,990 2,050 Provision for Taxes and Profit 371 388 Net Profit 459 622 * Includes: Interest Income, Net , Credit

  4. Slide 4: Credit Continues to Rise

    Credit Continues to Rise 11% 2 265 261 262 252 241 2013 2014 2015 2016 Q1 2017 (NIS Billions) *Q1 2017 Foreign Currency Rate Impact of 2 NIS Billions 4

  5. Slide 5: Credit Growth by Segments

    Credit Growth by Segments Individuals 2% 39 38 Q4 2016 Q1 2017 Commercial Middle-Market Corporate 3% 3% 57 55 34 35 Q4 2016 Q1 2017 Q4 2016 Q1 2017 (NIS Billions) Corporate includes Corporate, Real-Estate and Capital Markets 5

  6. Slide 6: Stable Liquidity. Conservative, Well-funded and Diverse Portfolio

    Stable Liquidity. Conservative, Well-funded and Diverse Portfolio 100% 347 342 84% 329 303 77% Deposits of The Public 31.3.2017 286 261 262 265 252 241 Retail 7% 17% Commerical 56% Corporate & Realestate 8% Capital Markets 12% Subsidiaries 0% 2013 2014 2015 2016 Q1 2017 Deposits of the public Credit

  7. Slide 7: Profound Increases in Net Interest Income and Net Interest Margin

    Profound Increases in Net Interest Income and Net Interest Margin 1.91% 1.76% 1,873 1,655 Q1 2016 Q1 2017 Net Interest Margin Net Interest Income (NIS Millions) 7

  8. Slide 8: Resilient and High Quality Credit Portfolio

    Resilient and High Quality Credit Portfolio NPL Ratio 1.1%, NPLs 56% Lower Than 2012 Continuous Positive Trend in Problem Debts 9000 2.8% 10,931 8000 2.5% 9,801 9,551 6,788 2.1% 7000 2.0% 7,928 6000 1.7% 55% 7,628 5,214 46% 39% 7,327 5000 1.5% 4,406 1.3% 40% 1.2% 40% 39% 4000 3,482 1.1% 3,219 2,985

  9. Slide 9: Another View of the High Quality Credit Portfolio

    Another View of the High Quality Credit Portfolio Low Credit Loss Expenses NO SINGLE 10% 0.19% CREDITORS GROUP 472 0.11% 268 0.08% 199 0.15% 101 2013 2014 2015 2016 Q1 2017 -125 (0.05%) (NIS Millions) 9

  10. Slide 10: Diverse and Slightly Increased Commission Revenue

    Diverse and Slightly Increased Commission Revenue 3% 988 1,018 255 240 200 208 207 208 179 178 162 169 Total Credit Cards Securities Transactions Account Management Financing Transactions Other Fees Q1 2016 Q1 2017 Q1 2016 Q1 2017 (NIS Millions) 10

  11. Slide 11: Efficiencies Improving, Core Operating & Other Expenses Going Down

    Efficiencies Improving, Core Operating & Other Expenses Going Down Q1 2016 Q1 2017 1,304 CORE SALARY 1,304 (4.3%) 1,248 1,248 EXPENSES Core Salary ONE-TIME BONUS & EFFECT OF Expenses (62) 43 COLLECTIVE WAGE AGREEMENTS TOTAL SALARY & RELATED EXPENSES 1,242 1,291 Maintenance & Depreciation Expenses 39

  12. Slide 12: Streamlining of the Business Continues into 2017

    Streamlining of the Business Continues into 2017 Number of Positions Reduced and Net Income Per Positions Trending Up 13,809 13,401 13,079 12,693 11,636 1,055 1,027 948 934 886 2012 2013 2014 2015 2016 Number of Positions Income per average Number of Positions (Income per Positions in Thousands) 12

  13. Slide 13: Set for Growth, Well-managed Capital, Dividend Program Rolls Out

    Set for Growth, Well-managed Capital, Dividend Program Rolls Out Successfully Managing Capital, Q1 2017 Dividend Payout Regulatory CET-1 Target Tier 1 Capital ratio 11.15% 11.02% 10.3% 31.3.2017 Leumi’s CET-1 Target 9.58% 9.09% 25% 10.5% 31.12.2017 32.3 31.3 Total Capital Ratio 28.8 31.3.2017 13.8%

  14. Slide 14: Q1 2017 Highlights – Strong Start to the Year, Across the Board

    Q1 2017 Highlights – Strong Start to the Year, Across the Board Increase in Credit and Net Interest Income Continuous Implementation of Efficiency Plan; Improvement in Efficiency Ratio Substantial Increase in Return on Equity, all from Core Business High Return on Comprehensive Income High Quality C

  15. Slide 15: Q&A

    Q&A

  16. Slide 16: Thank You

    THANK YOU

  17. Slide 17: Appendix

    APPENDIX

  18. Slide 18: Strong Macro Profile – A Positive for Leumi

    Strong Macro Profile – A Positive for Leumi 2016 E2017* E2018* GDP, rate of change, real terms 4.0% 3.2% 3.9% Strong Economic Growth – Positive for Leumi Current account surplus, % of GDP 3.9% 3.5% 3.3% Robust Demographic Fundamentals – Government budget deficit, % of GDP (2.1%) (2.6%) (2.7%) Anothe

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