Mizrahi Tefahot Bank Ltd · TASE:MZTF
Mizrahi Tefahot Bank — Q1 2017 Earnings Presentation
27 slides from Mizrahi Tefahot Bank's earnings presentation, March 2017
Slide 1: Financial Statements March 2017
Financial Statements March 2017 Financial Statements 31 December 2008 1
Slide 2: Disclaimer
Disclaimer •This document has been prepared by Mizrahi-Tefahot Bank Ltd (UMTB) solely for use at the company's presentation. The information contained in this document constitutes information from the bank's 2017 quarterly reports and/ or immediate reports, as well as the periodic, quarterly and ann
Slide 3: The bank continued to achieve good and growing profitability
The bank continued to achieve good and growing profitability while maintaining high level of efficiency, improved capital and liquidity ratios, maintained leadership in the mortgage market 3 and approved a long term strategic plan that can support asset mix diversification, NIM and ROE growth 3
Slide 4: Balance between digital and personal customer relationships
“Banks that can get the balance right between digital and personal interactions will be those that build the strongest customers relationships”* * • Branches are still having a significant effect on customer satisfaction across all age groups • Within closely watched Millennial age group (those born
Slide 5: Continuous loan growth
Continuous loan growth Credit to the public NIS mil 173,068 171,341 159,204 147,569 138,565 128,651 2012 2013 2014 2015 2016 1Q2017 1Q2017 Average annual growth rate 7.2% 5
Slide 6: Continuous loan growth (quarterly)
Continuous loan growth Credit to the public NIS mil 173,068 171,341 168,620 165,515 162,073 159,204 157,996 152,317 150,694 1Q2015 2Q2015 3Q2015 4Q2015 1Q2016 2Q2016 3Q2016 4Q2016 1Q2017 6
Slide 7: Credit growth in most segments
Credit growth in most segments Loans to the public 31.3.2017 31.3.2016 % of change Housing loans 115,378 107,442 7.4% Households 19,165 17,098 12.1% Private banking 98 60 63.3% Small and micro 15,615 14,342 8.9% businesses Medium businesses 4,907 4,783 2.6% Large businesses and 14,768 15,186 )2.8%(
Slide 8: Continuous deposit growth
Continuous deposit growth Deposits from the public NIS mil 180,722 178,252 162,380 152,379 141,244 128,081 2012 2013 2014 2015 2016 1Q2017 1Q2017 Average annual growth rate 8.4% 8
Slide 9: Continuous deposit growth (quarterly)
Continuous deposit growth Deposits from the public NIS mil 180,722 178,252 173,748 169,621 165,001 162,380 158,107 153,736 153,002 1Q2015 2Q2015 3Q2015 4Q2015 1Q2016 2Q2016 3Q2016 4Q2016 1Q2017 9
Slide 10: Financing revenues from current operations continue to grow
Financing revenues from current operations continue to grow (NIS m) 1,047 1,018 990 949 922 909 898 854 849 1Q2015 2Q2015 3Q2015 4Q2015 1Q2016 2Q2016 3Q2016 4Q2016 1Q2017 Average annual growth rate 11.1%* * Assuming Q1 2017 annualized 10
Slide 11: Growth in financing revenues in all main business segments
Growth in financing revenues in all main business segments Financing revenues (NIS m) Q1/2017 Q1/2016 % of change Housing loans 301 257 17.1% Households 293 256 14.5% Private banking 14 11 27.3% Small and micro 205 189 8.5% businesses Medium businesses 48 43 11.6% Large businesses and 136 132 3% ins
Slide 12: Increase in net profit and total financing revenues from current operations
Increase in net profit and total financing revenues from current operations (y/y) Total financing revenues Net profit from current operations 1,047 321 13.6% 11.5% 922 288 1Q2016 1Q2017 1Q2016 1Q2017 12
Slide 13: Mortgages – balance and revenues
Mortgages –balance and revenues* * Operating segments in conformity with management approach. 13 Note 12 to quarterly reports, Note 29 to annual reports
Slide 14: Continue to control expenses
Continue to control expenses Operating and other expenses Salaries 5.6% 823 779 4.4% 498 477 2.7%* 3.0%** 800* 491** 1Q2016 1Q2017 1Q2016 1Q2017 * Excluding the unusual effect of increase in expenses of Yahav bank, which are partially non-recurring, the increase is 2.7% 14 ** Excluding the effect of
Slide 15: Continue to improve efficiency
Continue to improve efficiency 60.8% 59.0% 1Q2016 1Q2017 15
Slide 16: Increasing equity base
Increasing equity base Core tier 1 as of Q1/2017 – 10.12% 12,714 13,015 11,847 10,797 9,681 8,730 7,601 2011 2012 2013 2014 2015 2016 1Q2017 1Q2017 Average annual growth rate 10.8% 16
Slide 17: Double digit ROE despite dramatic increase in equity and low interest rate
Double digit ROE despite dramatic increase in equity and extremely low interest rate ROE(%) Equity (NIS mil) 1Q2017 In black – Bank of Israel interest rate at the end of the period 17
Slide 18: Dividend distribution - increase dividend payout to 30% of net profit
Dividend distribution - increase dividend payout to 30% of net profit in accordance with the strategic plan Dividend distribution for the relevant period 190 120 122 96 75 2010 2011 2012 2013 2014 2015 2016 1Q2017 1Q2017 18
Slide 19: Financial results
oo MIZRAHI TEFAHOT Financial results 19
Slide 20: Net profit (NIS mil)
(ee) MIZRAHI TEFAHOT 373 321 at 2016 2017 20
Slide 21: Equity (NIS bil)
Equity (NIS bil) 12,714 13,015 12,098 31.3.2016 31.12.2016 31.3.2017 21
Slide 22: Loans to the public (NIS bil)
Loans to the public (NIS bil) 171.3 173.1 159.2 147.6 138.6 31.12.2013 31.12.2014 31.12.2015 31.12.2016 31.3.2017 22
Slide 23: Deposits from the public (NIS bil)
Deposits from the public (NIS bil) 178.2 180.7 162.4 152.4 141.2 31.12.2013 31.12.2014 31.12.2015 31.12.2016 31.3.2017 23
Slide 24: Financing Revenues (NIS mil)
Financing Revenues (NIS mil) Rate of Q1 - 2017 Q1 - 2016 change Interest revenues, net 1,027 760 Non-interest financing revenues (1) 67 Total financing revenues 1,026 827 24.1 Less: Linkage differentials with respect to CPI position (21) (119) Revenues from collection of interest on troubled debt 13
Slide 25: Provisions / loans to the public
Provisions / loans to the public 0.19% 0.14% 0.14% 0.12% 0.01% Q1 Q2 Q3 Q4 Q1 2016 2017 25
Slide 26: Cost / income ratio
Cost / income ratio 60.8 59.0 58.5 57.8 55.2 Q1 Q2 Q3 Q4 Q1 2016 2017 26
Slide 27: Capital adequacy
Capital adequacy 13.80% 13.44% 13.20% Total Ratio 9.65% 10.10% 10.12% Tier I 31.3.2016 31.12.2016 31.3.2017 27