Bank Leumi Le-israel B.m. · TASE:LUMI

Bank Leumi Le-israel B.m — Q1 2019 Earnings Presentation

16 slides from Bank Leumi Le-israel B.m's earnings presentation

  1. Slide 1: Q1 2019 Results Presentation

    Q1 2019 RESULTS PRESENTATION

  2. Slide 2: Disclaimer

    The conference call does not replace the need to review the latest periodic/quarterly reports containing full information, including forward looking, as defined in the Israeli Securities Law. DISCLAIMER This document and the information contained herein – 1. Has been prepared by Bank Leumi le-Israel

  3. Slide 3: First Quarter 2019 – Highlights

    First Quarter 2019 – Highlights • Established a new Data Division Key Business • Launched the Operations Division Developments • Completed the sale of Leumi Card • ROE reached 12.7%.; 10.1% excluding the effect of Leumi Card, up from 8.6% Q1 2018 Financial • Continued Improvement in core business Hi

  4. Slide 4: A Snapshot of Leumi's Q1 Performance

    A Snapshot of Leumi’s Q1 Performance NII and NIM* Cost Income Ratio* ROE* 1.95% 2.08% 63.7% 2,120 10.1% 57.9% 1,937 8.6% Q1 2018 Q1 2019 Q1 2018 Q1 2019 Q1 2018 Q1 2019 NII Cost Income Ratio ROE 12.7% 2,120 63.8% 2,006 9.0% 53.0% Q1 2018 Q1 2019 Q1 2018 Q1 2019 Q1 2018 Q1 2019 (NIS Millions) * Net o

  5. Slide 5: A Holistic View of our High Quality Credit Portfolio

    A Holistic View of our High Quality Credit Portfolio Low Credit Loss Expenses Substantial Improvement in NPL Ratio 9000 8000 2.50% 7000 1.70% 2.00% 6000 5000 1.30% 1.23% 1.50% 4000 1.00% 0.89% 0.19% 4,406 0.75% 1.00% 3000 3,482 3,219 2000 2,713 0.15% 2,476 2,107 0.50% 1000 0 0.00% 2014 2015 2016 201

  6. Slide 6: Revenues

    Revenues Finance Income 24.3% 2,471 1,988 2,120 Net Interest Income 1,937 Non-interest Financing Income 351 51 Q1 2018* Q1 2019* Fees and Commissions 2.1% 826 809 Q1 2018* Q1 2019 (NIS Millions) * Net of the effect of Leumi Card as per the pro-forma financial statements presentation 6

  7. Slide 7: Q1 Expenses and Efficiency Ratio

    Q1 Expenses and Efficiency Ratio Expenses Improved Efficiency Ratio* 1,946 Total Salary & 1,805 1,136 Related Expenses 999 63.7% 57.9% Maintenance & Depreciation Expenses and Others 806 810 Q1 2018* Q1 2019 Q1 2018 Q1 2019 (NIS Millions) Majority of the change in salary and related expenses is linke

  8. Slide 8: Loan Growth in Line with Strategy

    Loan Growth in Line with Strategy Total Middle-Market 13% 20% 5.7% Retail 39.4 Mortgages 37.3 23% 277.1B Middle-Market Corporate 30% Other 14% Q1 2018 Q1 2019 Mortgages Corporate 3.9% 14.6% 63.4 82.0 78.9 55.3 Q1 2018 Q1 2019 Q1 2018 Q1 2019 (NIS Billions) Corporate includes Corporate and Real-Estat

  9. Slide 9: Deposits and Customer Securities Portfolios

    Deposits and Customer Securities Portfolios Deposits by the Public Securities Portfolio* 5.7% Q1 2019 Loan/Deposit Ratio 76% 748 708 362 364 Q1 2018 Q1 2019 Q1 2018 Q1 2019 (NIS Billions) 9 * Including changes in the market value

  10. Slide 10: Strong Capital Generation and Adequacy Ratios

    Strong Capital Generation and Adequacy Ratios Capital Up, CET1 Well-above Target – Enabling Returns to Shareholders TCR 15.07% CET1 11.65% Target 10.5% 35.3 35.9 33.2 31.3 28.8 25.8 Dec 31, 2014 Dec 31, 2015 Dec 31, 2016 Dec 31, 2017 Dec 31, 2018 March 31, 2019 (NIS Billions) 10

  11. Slide 11: High Share Returns via Dividend and Buyback; New Buyback Plan Announced Today

    High Share Returns via Dividend and Buyback; New Buyback Plan Announced Today Return to Shareholders Dividends 40% quarterly payout ratio in Q1 2,003 New Buyback Plan in Place 1,303 The Board of Directors has approved an 969 + New up to NIS 700 up to NIS 700 million plan 700 Million Buyback plan 437

  12. Slide 12: Wrapping Up – First Quarter 2019

    Wrapping Up – First Quarter 2019 • Strong quarter - High ROE, an increase in most revenue items • Continuous improvement in the Cost Income ratio • Very low credit loss expenses • Selective credit growth aligned with strategy • High capital returns to shareholders • Business model evolving to match

  13. Slide 13: Q&A

    Q&A

  14. Slide 14: Thank You

    THANK YOU

  15. Slide 15: Appendix

    APPENDIX

  16. Slide 16: Strong Macro Profile – A Positive for Leumi

    Strong Macro Profile – A Positive for Leumi E2019* 2018 2017 2016 GDP, rate of change, real terms 3.1% 3.3% 3.5% 4.0% Private Consumption 3.6% 3.9% 3.4% 6.4% Current account surplus, % of GDP 3.1% 3.0% 2.9% 3.8% Government budget deficit, % of GDP (3.6%) (2.9%) (1.9%) (2.1%) Government debt, % of GD

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