Mizrahi Tefahot Bank Ltd · TASE:MZTF
Mizrahi Tefahot Bank — Q3 2022 Earnings Presentation
18 slides from Mizrahi Tefahot Bank's earnings presentation, November 2022
Slide 1: Financial statements
COO Financial statements | coumtTs
Slide 2: Disclaimer
Q3/22 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 2022 quarterly reports and/ or immediate reports, as well as the periodic, quarterly
Slide 3: Macro environment
Q3/22 Macro environment Unemployment rate)1()2( GDP growth)1( (3) Bank of Israel interest rate and inflation Known CPI – monthly change 0.1% 1.3% 0.8% 0.2% 1.2% 2.0% 1.2% 0.8% 1 year OTC inflation expectation 2.87% )4( Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2021 2022 1) 2022F-2023F according to BoI forecast from O
Slide 4: Overview of Mizrahi-Tefahot
Q3/22 Overview of Mizrahi-Tefahot Leading Israeli Bank NIS 430bn NIS 304bn NIS 345bn Total Assets1 Net Loans to the public1 Deposits from the public1 NIS 7.3bn NIS 9.9bn NIS 3.4bn Net Interest Revenue2 Total Revenue2 Net Profit2 NIS 33.9bn >7,600 225 Market Cap3 Employees5 Branches4,5 Significant Ma
Slide 5: Financial Highlights
Q3/22 Financial Highlights Total Assets (NISbn) Net Loans to the Public (NISbn) Deposits from the Public (NISbn) 12.7% 1 1 16.2%1 1 16.1% Balance Sheet 392 417 12.3% 430 7.9% 304 1 328 1 21.3% 345 298 308 Growth 271 Dec-21 Jun-22 Sep-22 Dec-21 Jun-22 Sep-22 Dec-21 Jun-22 Sep-22 Cost/Income Ratio Ret
Slide 6: Merger with Union Bank
Q3/22 Merger with Union Bank • On September 5, 2022, the Bank filed a proposed merger with the Registrar of Companies.1 The statutory merger of Union Bank into Mizrahi Tefahot is expected on December 29, 2022. • The process of customer transition, which started in the second quarter of 2021, was gra
Slide 7: Asset quality (NIS mil)
Q3/22 Asset quality (NIS mil) Segment 1-9/2022 1-9/2021 Q3/2022 Q3/2021 Provisions / loans to the public Rate of Rate of Rate of Rate of 0.15% Provision Provision Provision Provision provision provision provision provision Housing loans 88 0.06% )92( )0.07%( 36 0.07% )10( )0.02%( Business 200 0.32%
Slide 8: Asset quality (NIS mil)
Q3/22 Asset quality (NIS mil) % of total % of total 1-9/2022 1-9/2021 Q3/2022 Q3/2021 provisions provisions Provision for credit losses on individual basis 133 39% 63 47 30% 38 (including accounting write-offs): Of which Increased expenses 332 323 141 116 Decreased expenses (199) (260) (94) (78) Pro
Slide 9: Net profit in 1-9/2022 is higher than the annual profit in all previous years
Q3/22 Net profit in 1-9/2022 is higher than the annual profit in all previous years 3,385 3,188 1,842 1,610 1,266 1,347 1,134 1,206 2015 2016 2017 2018 2019 2020 2021 1-9/2022 NIS mil 8
Slide 10: Net profit in Q3/2022 is the HIGHEST EVER!
Q3/22 Net profit in Q3/2022 is the HIGHEST EVER! 1,178 1,154 988 1,053 279 845 )1( 676 875 679 506 357 360 387 Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 Q2/21 Q3/21 Q4/21 Q1/22 Q2/22 Q3/22 NIS mil 9 (1) Excluding effect of capital gain in the first quarter of 2022
Slide 11: Profitability and efficiency
Q3/22 Profitability and efficiency Net profit (NIS mil) Return on equity Cost/income ratio 1,178 20.8% 51.2% 845 )1( 16.2% 43.3% Q3/2021 Q3/2022 Q3/2021 Q3/2022 Q3/2021 Q3/2022 3,385 279 20.6% 54.0% 45.5% )1( 3,188 3,106)1( 52.2% 2,509 )1( 43.8% 18.9% 16.8% 15.8% 1-9/2022 2021 1-9/2022 1-9/2022 2021
Slide 12: Continuous loan growth (NIS bil)
Q3/22 Continuous loan growth (NIS bil) Credit to the public 304 % change in 271 Business segment 30.9.22 30.6.22 annual terms 246 194 205 Housing loans 192,772 189,366 7.2% 171 181 221 159 Households + private banking 26,772 26,628 2.2% Total individuals 219,544 215,994 6.6% Total businesses (1) 84,
Slide 13: Continuous loan growth (NIS bil)
Q3/22 Continuous loan growth (NIS bil) Credit to the public (1) 2015 – 2020 average annual growth 1-9/2022 growth ~12 NIS bil ~33 NIS bil % change in Business segment 30.9.22 31.12.21 annual terms 304 Housing loans 192,772 174,822 13.7% 271 246 Households + private 26,772 26,087 3.5% 181 194 205 ban
Slide 14: Continuous deposit growth (NIS bil)
Q3/22 Continuous deposit growth (NIS bil) Deposits from the public (NIS bil) Core deposits(1) (NIS bil) 206 221 194 345 127 137 106 114 168 308 96 284 211 247 2015 2016 2017 2018 2019 2020 2021 30.9.22 184 199 178 162 Core deposits (1) by segments Segment 124.3 149.5 House holds and Private banking
Slide 15: Financing revenues from current operations continue to grow
Q3/22 Financing revenues from current operations continue to grow Q1/2015Q2/2015Q3/2015Q4/2015Q1/2016Q2/2016Q3/2016Q4/2016Q1/2017Q2/2017Q3/2017Q4/2017Q1/2018Q2/2018Q3/2018Q4/2018Q1/2019Q2/2019Q3/2019Q4/2019Q1/2020Q2/2020Q3/2020Q4/2020Q1/2021Q2/2021Q3/2021Q4/2021Q1/2022Q2/2022Q3/2022 From Q4/2020 inc
Slide 16: Expenses
Q3/22 Expenses Operating and other expenses (NIS mil) Salaries (NIS mil) 4,013 4,359 2,853 2,576 The growth rate in payroll expenses was primarily 1-9/2021 1-9/2022 1-9/2021 1-9/2022 affected by variable remuneration items, due to the 1,529 1,002 financial results in 1,339 1,392 863 884 the first ni
Slide 17: Gradual return to dividend policy
Q3/22 Gradual return to dividend policy 1,024 Leverage ratio Dividend distributed (For the relevant period) 5.18% 5.26% 737 669 31.12.21 30.9.22 483 404 Capital adequacy Total ratio 13.66% 13.12% 190 120 122 137 75 9.92% 10.04% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 1-9/22 31.12
Slide 18: Thank you
“Thankyou |