First International Bank Of Israel Ltd · TASE:FIBI
First International Bank Of Israel — The First International Bank of Israel — Q1 2023 Earnings Presentation
20 slides from First International Bank Of Israel's earnings presentation, May 2023
Slide 1: Financial Statements as of March 31, 2023
Financial Statements as of March 31, 2023 1 The accessible presentation is available on the First International Bank’s website via the link: https://online.fibi.co.il/wps/portal/FibiMenu/MarketingEN/AnInformation/AnInvestorRelations/AnFinancialStatements/An2023
Slide 2: Disclaimer
Disclaimer Without derogating from the generality of the provisions contained in the Terms of Use as published on the website of The First International Bank of Israel Ltd. (the “Bank” and/ or “FIBI”), this presentation and its contents were prepared by the Bank for its exclusive use as part of the
Slide 3: Net Profit and ROE (NIS millions)
Net Profit and ROE (NIS millions) 96.0% 23.6% ROE 20.7% 631 17.7% 536 Net profit 13.0% 322 Q1.2022 Q4.2022 Q1.2023 Tier 1 capital ratio 10.79% 10.42% 10.55% BOI interest (average) 0.1% 2.89% 3.92% 3
Slide 4: Growth
Growth Deposit growth (NIS billions) - end of period Total credit to public (NIS billions) -end of period 173.4 173.4 168.3 119.8 119.8 153.4 117.2 141.7 154.0 107.3 102.2 92.2 31.12.20 31.12.21 31.12.22 31.3.23 31.3.22 31.3.23 31.12.20 31.12.21 31.12.22 31.3.23 31.3.22 31.3.23 4
Slide 5: Principal Information Q1.2023
Principal Information Q1.2023 Profitability . Net profit growth Revenue growth Financing income growth Commission income growth 631 96% 1,700 45% 1,311 69% 388 1% Q1.2023 change Q1.2023 change Q1.2023 change Q1.2023 change Growth ROE Credit growth Deposit growth Private deposit growth 11.6% 2.2% 12.
Slide 6: Condensed Income Statement Q1.2023
Condensed Income Statement Q1.2023 Change (NIS millions) Q1.2023 Q1.2022 (before taxes) % change Interest income, net 1,275 744 531 71.4% Non-Interest financing income 36 34 2 6.8% Net financing income 1,311 778 533 68.6% Credit loss expenses (comprising a rate of 0.25%, no expense was recorded in t
Slide 7: Net Financing Income
Net Financing Income (NIS millions) Financing income from current activities* Interest and non-interest income (excluding fair value of derivative instruments and investment income) 1,332 1,275 Interest Income 744 777 34 36 Non-interest income 1-3.2022 1-3.2023 1-3.2022 1-3.2023 * Excluding non-curr
Slide 8: Main Commissions Q1.2023 compared to Q1.2022
Main Commissions Q1.2023 compared to Q1.2022 (NIS millions) 388 384 Q1.2023 Q1.2022 Q1.2022 Q1.2023 203 187 52 56 50 62 29 29 24 26 26 28 Conversion differences Commissions on Other commissions Transactions Account Credit cards financing activities in securities management 8
Slide 9: Credit Portfolio Growth
Credit Portfolio Growth End of period (NIS billions) 31.3.2023 Private Large customers 119.8 businesses 19% (incl. 117.2 institutions) 27% Midsize 107.3 businesses 7% Housing Small & loans micro 30% businesses 17% 31.3.22 31.12.22 31.3.23 High quality, diversified credit *Total average credit balanc
Slide 10: Credit Portfolio Growth
Credit Portfolio Growth End of period (NIS billions) Housing loans Private customers 35.5 35.5 33.3 23.1 23.7 23.6 31.03.22 31.12.22 31.03.23 31.03.22 31.12.22 31.03.23 Large & midsize businesses Small & micro businesses 21.9 20.5 20.7 37.6 40.2 29.0 31.03.22 31.12.22 31.03.23 31.03.22 31.12.22 31.0
Slide 11: Credit Quality and Problematic Credit Risk
Credit Quality and Problematic Credit Risk Problematic credit risk (NIS millions) and credit quality indices Individual and collective expense (income) rates in respect of credit losses Problematic credit risk (accrual) 1,697 1,586 0.25% Problematic credit risk (non-accrual) 968 0.30% * 984 726 596
Slide 12: Ratio of expenses (income) from credit losses to average total credit
Ratio of expenses (income) from credit losses to average total credit FIBI’s moderate credit policy resulted in lower provision rates FIBI 4 largest Israeli banks (avg.) 0.76% 0.76% 0.76% 0.43% 0.42% 0.44% 0.31% 0.52% 0.27% 0.44% 0.22% 0.39% 0.16% 0.13% 0.14% 0.10% 0.11% * 0.25% 0.18% 0.20% 0.20% 0.
Slide 13: Deposit Growth
Deposit Growth End of period (NIS billions) 31.3.23 Private Total Public 173.4 168.3 79.8 154.0 Institutional Private 78.5 entities customers 26% 46% 75.1 Large businesses 9% Midsize businesses 4% 31.3.22 31.12.22 31.3.23 31.3.22 31.12.22 31.3.23 Small businesses 15% Diversified deposit portfolio- 6
Slide 14: Financial Strength
Financial Strength Positive gap 31.12.22 above the 31.3.23 Bank’s rating : regulatory requirement Maalot (S&P)(AAA) Midroog (Aaa) Tier 1 capital ratio 10.42% 1.31% 10.55% Moody’s (A2) Total capital ratio 13.75% 1.36% 13.86% Credit quality: Liquidity ratio 127% 31% 131% The Bank maintains a moderate
Slide 15: Net Changes in Tier 1 Capital Ratio (Q1.2023)
Net Changes in Tier 1 Capital Ratio (Q1.2023) 10.42% (0.20%) 10.55% 0.60% (0.26%) Net profit (0.02%) 0.01% Growth in risk assets 31.3.23 Dividend Net change in adjustments of Net change in available-for-sale non-controlling rights (Massad) 31.12.22 bonds to fair value Total capital attributed to sha
Slide 16: High Dividend Yield
High Dividend Yield (NIS millions) 6.8% 6.0% 4.4% 4.5% 945 1.5% 545 410 268 125 2019 2020 2021 2022 31.3.2023 Since the Bank’s policy calls for an annual distribution of up to 50% of annual net income, and mainly in light of the current uncertainty in Israeli and global markets, on May 17, 2023, the
Slide 17: Securities Portfolio
Securities Portfolio 31.3.23 31.12.22 Book value Book value % Duration % Duration Change % (NIS millions) (NIS millions) A . Bonds held to 3,350 3.61 17% 3,138 3.67 20% 7% maturity Of which: Israel 3,181 3.61 16% 2,941 3.64 18% 8% government (95%) B . Bonds available for 15,619 1.73 79% 12,401 2.12
Slide 18: Strengths
Leadership in capital market services Leadership and focus on retail banking, including growing niches No. 1 in trading volumes on the TASE Management of a client asset portfolio of NIS 560 By providing high-quality retail service to all clients, billion (securities and deposits) including high-net-
Slide 19: Key Highlights- Q1.23 compared Q1.22
Key Highlights- Q1.23 compared Q1.22 . Low NPL (0.47%) 18% decline in problematic credit 5 1 ROE- 23.6% and increased provision buffers 'mprovsmsnt in sfflisnly ratio Growth in balance of credit to the public (EOP) – 11.6% Growth in balance of credit to the public (average) – 13.7% 6 2 from 58.5% to
Slide 20: Thank You
Thank You ail
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