Mizrahi Tefahot Bank Ltd · TASE:MZTF
Mizrahi Tefahot Bank — Investor Presentation (December 2014)
15 slides from Mizrahi Tefahot Bank's investor presentation, Dec 24, 2014
Slide 1: Strategic Plan Targets Update
Strategic Plan Targets Update Capital Market Presentation December 2014
Slide 2: General Comments regarding Legal Responsibility
This document constitutes an English translation of the Presentation, originally drafted and published in Hebrew. For legal purposes, it is clarified herein that whilst every effort was made to provide accurate information, this translation bears no legal status and the Bank shall not be held liable
Slide 3: The original strategic plan – status report: Balance sheet
The original strategic plan – status report(1) Balance sheet 31.12.2017 30.9.2014 31.12.2011 Original Plan CAGR(2) Balance Sheet 12/2011 – Outstanding 12/2011 –9/2014 12/2017 (NIS bil) Credit to the Public 174 147 119 7.8% 6.5% Balance Sheet Debt 173 144 118 in Israel(3) 7.0% 6.6% Deposits from the
Slide 4: Targets of the original strategic plan – status report: Market share
Targets of the original strategic plan – status report(1) Market share 31.12.2017 30.9.2014 31.12.2011 Target Original Plan Market Shares Credit to the Public 17.5% 17.4% 15.1% Balance Sheet Debt in 18.0% 18.6% 16.6% Israel(3) Commercial Debt Balance in 11.5% 9.2% 9.0% Israel (2) (3) Housing Loans (
Slide 5: Targets of the original strategic plan – status report: Financial ratios
Targets of the original strategic plan ‐ status report(1) Financial ratios 2017 January – September 2011 Target Original Plan 2014 ROE (annual) 14.5% 11.4% 14.6% Core tier 1 Capital (end of period) 9.0%(2) 9.0% 7.8% Cost/Income Ratio ≤55% 61%(3) 58% (operating expenses divided by total income) In li
Slide 6: Materialization of the risk factors of the original strategic plan
Materialization of the risk factors of the original strategic plan for 2013‐2017 compared with the assumptions at its basis Regulatory Risks Global Economy Risks The Regulatory instructions that will substantially The World economic growth is expected to at least on Assumption change the business en
Slide 7: Updating the strategic plan’s targets
Updating the strategic plan’s targets The bank’s board of directors has revisited the targets of the strategic plan and decided on the following updates. a. updating market share targets The bank has been growing at high rates, beyond the specified path. Therefore, it has been decided that the balan
Slide 8: Balance sheet – updated strategic plan
Balance sheet – updated strategic plan (1) (NIS bil) Target 31.12.2017 – CAGR (2) 30.9.2014 31.12.2017 Updated Plan Original Plan Credit to the Public 178 147 174 6.1% Balance Sheet Debt in 176 144 173 Israel (3) 6.2% Deposits from the 187 151 176 Public 6.9% % of Credit to 73% 74% (4) 65% Household
Slide 9: Market share targets – updated strategic plan
Market share targets – updated strategic plan(1) Market Shares 2017 Updated 30.9.2014 2017 – Original Plan Plan Credit to the Public 19.0% 17.4% 17.5% Balance Sheet Debt in 20.0% 18.6% 18.0% Israel(2) Housing Loans (New +35% 35% (4) +35% Initiations) Commercial Debt Balance in 11.0% 9.2% 11.5% Israe
Slide 10: Updated dividend distribution policy
Updated dividend distribution policy The bank’s board of directors approved an updated dividend distribution policy for 2015-2016, substituting the policy detailed in the original strategic plan. According to the updated dividend policy, the bank will distribute on the basis of quarterly profits for
Slide 11: Updated income, expense and ROE targets
Updated income, expense and ROE targets (NIS mil) Income Expenses 4,963 4,787 4,608 4,328 3,839 3,518 2,957 2,667 2,786 2,470 2,566 2,153 (1) (2) 2008 2009 2010 2011 2012 2013 2014E 2015F 2016F 2017F Updated Original Plan Plan ROE 10.4% 10.4% 11.8% 14.6% 13.1% 11.5% 13.0% 14.5% Net Profit 601 650 80
Slide 12: Updated ROE target
Updated ROE target 14.6% 13.1% 13.0% 11.8% 11.5% 11.4% 10.4% 2009 (1) 2010 2011 2012 2013 1-9/2014 2017F • The bank’s target of achieving an ROE of 13.0% in 2017 is despite the increase of core tier 1 capital and despite a restrained macro‐economic environment, characterized by a low interest and in
Slide 13: The strategic plan will continue to be based on targets and efforts in the following areas
The strategic plan will continue to be based on targets and efforts in the following areas: 1 Maintaining the bank’s status as a leader in the mortgage market. Continuing the process of increasing the bank’s market share in the household sector through: • Operating the LIVE branches • Strengthening
Slide 14: The strategic plan will continue to be based on the following main growth engines
The strategic plan will continue to be based on the following main growth engines: 1 Making efforts to improve cost/income ratio (1) to a level below 55% 2 Strengthening capital management abilities and preparing for innovative, complex capital instruments 3 Strengthening risk management abilities 4
Slide 15: Risk factors that are beyond the bank’s control and may influence the bank’s growth path
Risk factors that are beyond the bank’s control and may influence the bank’s growth path Regulatory Risks Global Economy Risks The • No further changes to regulatory legislation The • World economic growth is expected to be between 0- Assumption and instructions that can influence the Assumption 1%
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