Mizrahi Tefahot Bank Ltd · TASE:MZTF
Mizrahi Tefahot Bank — Q1 2021 Earnings Presentation
14 slides from Mizrahi Tefahot Bank's earnings presentation, May 2021
Slide 1: Financial statements Q1 2021
COO Financial statements | coumtTs
Slide 2: Disclaimer
Q1/21 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 2020 quarterly reports and/ or immediate reports, as well as the periodic, quarterly
Slide 3: Macro environment
Q1/21 Macro environment Unemployment rate)1()2( GDP growth)3( 36.1% 23.0% 21.2% 20.3% 6.3% 18.0% 16.7% 14.3% 14.2% 12.9% 11.9% 11.8% 11.5% 11.3% 10.6% 3.6% 3.5% 3.4% 7.5% 4.1% 4.1% 3.7% 3.7% 3.4% 2017 2018 2019 2020 2021F -2.6% Bank of Israel interest rate and inflation Known CPI – monthly change 0.
Slide 4: Overview of Mizrahi-Tefahot
Q1/21 Overview of Mizrahi-Tefahot Leading Israeli Bank NIS 370bn NIS 250bn NIS 294bn Total Assets1 Net Loans to the public1 Deposits from the public1 NIS 1.7bn NIS 2.4bn NIS 0.7bn Net Interest Revenue1 Total Revenue1 Net Profit1 NIS 24bn >7,500 197 Market Cap1 Employees2 Branches2,3 Significant Mark
Slide 5: Q1/2021 Financial Highlights
Q1/21 Q1/2021 Financial Highlights Total Assets (NISbn) Net Loans to the Public (NISbn) Deposits from the Public (NISbn) 370 294 Balance Sheet 2.9% 1.6% 284 3.4% 360 246 250 Growth Dec-20 Mar-21 Dec-20 Mar-21 Dec-20 Mar-21 Cost/Income Ratio Return on Equity 58.8% 14.9% 55.3% 11.4% 9.5% Profitability
Slide 6: Asset quality
Q1/21 Asset quality Provisions / loans to the public Segment Q1/2021 2020 Provision Rate of Provision Rate of 0.43% provision provision Housing loans )23( )0.06%( 279 0.18% Business 46 0.28% 635 0.99% Households )10( )0.16%( 136 0.53% 0.02% Total 13 0.02% 1,050 0.43% 2020 Q1/2021 5
Slide 7: Credit deferrals
Q1/21 Credit deferrals Balance of the mortgage 71.3% portfolio, 31.3.21 28.7% 159.7 23.0% 5.7% DidDid notnot request requestdeferral 113.9 deferral 113.9 Requested Requesteddeferral 45.8 deferral 45.8 Returned to orderly full repayment 36.7 1.1% Have not yet returned to orderly full repayment 9.1 4.
Slide 8: Profitability and efficiency
Q1/21 Profitability and efficiency Net profit (NIS mil) Return on equity Cost/income ratio 676 58.8% 506 14.9% 55.3% 11.4% 52.4% 357 9.1% 1Q/2020 4Q/2020 1Q/2021 1Q/2020 4Q/2020 1Q/2021 1Q/2020 4Q/2020 1Q/2021 In Q1/21 the bank recorded the highest profit ever 7
Slide 9: Continuous loan growth, led by mortgages and business loan growth
Q1/21 Continuous loan growth, led by mortgages and business loan growth Credit to the public % change in Business segment 31.3.21 31.12.20 annual terms 250 246 Housing loans 158,816 155,422 2.2% 194 205 171 181 Households + private 25,528 25,697 (0.7%) 159 221 banking Total individuals 184,344 181,1
Slide 10: Continuous deposit growth, led by core deposit growth
Q1/21 Continuous deposit growth, led by core deposit growth (1) Deposits from the public Core deposits(1) 127 137 194 201 294 106 114 168 96 284 211 178 184 199 247 2015 2016 2017 2018 2019 2020 31.3.2021 162 (1) Core deposits by segments Segment 92.6 House holds and Private banking 138.1 32% 47% Sm
Slide 11: Financing revenues from current operations continue to grow despite decrease in interest rates
Q1/21 Financing revenues from current operations continue to grow despite decrease in interest rates BoI rate: FED rate: 1-3/2020 0.25% 1-3/2020 1.26% 1-3/2021 0.10% 1-3/2020 0.08% Q1/2021 Q1/2020 Rate of change Interest revenues, net 1,691 1,347 Non-interest financing revenues 189 64 Total financin
Slide 12: Expenses
Q1/21 Expenses Salaries (NIS mil) Operating and other expenses (NIS mil) 870 1,335 1,341 785 126 233 120 282 665 )1( 744)1( 1,017 1,053 )1( 1,108)1( 644 1Q/2020 4Q/2020 1Q/2021 1Q/2020 4Q/2020 1Q/2021 Most of the increase is due to performance based remuneration (1) Excluding the effect of Union Ban
Slide 13: Equity and capital adequacy
Q1/21 Equity and capital adequacy Equity (NIS mil) Capital adequacy Total ratio Tier 1 13.62% 13.42% 18,804 19,422 10.04% 10.15% 31.12.2020 31.3.2021 BoI minimum requirement: 12.18% 12.16% 2020 Q1/2021 8.68% 8.66% 12
Slide 14: Thank you
“Thankyou