Bank Leumi Le-israel B.m. · TASE:LUMI
Bank Leumi Le-israel B.m — Bank Leumi Le Israel — Q2 2024 Earnings Presentation
17 slides from Bank Leumi Le-israel B.m's earnings presentation, Aug 14, 2024
Slide 1: Q2 2024 Financial results presentation
Q2 2024 Financial results presentation
Slide 2: Disclaimer
Disclaimer This document and the information contained herein – The conference call does not replace the need to review the 1. Has been prepared by Bank Leumi le-Israel B.M. (the “Bank”) solely for the purpose of presenting the Bank's business; latest periodic / quarterly reports in 2. Is provided s
Slide 3: Strong underlying performance
Strong underlying performance Key financial metrics Q2 2024 H1 2024 FY 2023 Net Income 2,269 5,054 7,027 ROE 15.9% 18.0% 13.7% Cost Income Ratio 28.7% 28.9% 32.6% Credit Loss Expenses (Income) (0.02%) 0.09% 0.58% Q-o-Q YTD Y-o-Y Net Loan Growth 1.2% 3.4% 9.0% Q-o-Q YTD Y-o-Y Core Deposit Growth 1.4%
Slide 4: Q2 2024 vs. Q2 2023 – Breakdown of Income and Expenses
Q2 2024 vs. Q2 2023 – Breakdown of Income and Expenses ↗︎ Finance Income ↗︎ Operating and Other Expenses 1.2% 4,767 4,824 (1.9%) 1,683 1,651 4,378 1,076 1,009 4,284 Q2 2023 Q2 2024 CPI 1.4% CPI 1.6% NIM 2.8% NIM 2.6% 607 642 483 446 Q2 2023 Q2 2024 Q2 2023 Q2 2024 Net Interest Income Non-interest Fi
Slide 5: H1 2024 vs. H1 2023 – Breakdown of Income and Expenses
H1 2024 vs. H1 2023 – Breakdown of Income and Expenses ↗︎ Finance Income 6.9% ↗︎ Operating and Other Expenses 8,720 9,325 5.0% 3,312 3,476 8,212 8,145 2,227 2,132 H1 2023 H1 2024 CPI 2.5% 1,180 CPI 1.9% 1,249 1,180 NIM 2.7% 508 NIM 2.4% H1 2023 H1 2024 H1 2023 H1 2024 Net Interest Income Non-interes
Slide 6: Net Interest Income and NIM
Net Interest Income and NIM 4,284 4,378 3,928 3,935 3,850 3,767 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 (NIS Millions) 6
Slide 7: Fees and Commissions Performance Year-over-Year
7 Fees and Commissions Performance Year-over-Year 0.4% 1,838 1,845 511 474 2.2% 311 313 299 297 288 291 890 910 261 227 202 209 Q2 Q2 H1 H1 Financing Account Securities Exchange Credit Cards Other Fees 2023 2024 2023 2024 Transactions Management Transactions Differentials H1 2023 H1 2024 (NIS Millio
Slide 8: Multi-year decline in cost-income ratio
Multi-year decline in cost-income ratio 57.9% 53.2% 45.8% 37.2% 32.6% 28.7% 2019 2020 2021 2022 2023 Q2 2024 Leumi cost income ratio for 2019 is net of the effect of Leumi Card and for 2020-2022 excludes Leumi USA. 8
Slide 9: Stable loan loss expenses, with negligible specific provisions
Stable loan loss expenses, With negligible specific provisions ↗︎ Loan loss expenses 0.95% 0.83% H1 2024: 0.09% 869 0.63% 0.21% 0.31% 0.45% 476 0.36% 0.29% (0.02%) 378 299 0.18% (21) 0.12% 192 0.06% 0.02% 122 (0.15%) (0.08%) 19 (86) 68 (156) Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Specific Collectiv
Slide 10: Credit quality improved in the quarter
Credit quality improved in the quarter Higher provisions and coverage despite lower NPLs ↗︎ NPLs ↗︎ Troubled Debts ↗︎ Total Provisions 1.78% 1.61% 1.58% 1.60% 1.54% 1.52% 1.49% 1.28% 0.85% 6.7 7.0 6.7 0.65% NIS Bn 0.56% 0.49% 5.0 NISbn 1.9 3.6 2.8 2.5 NISbn 6.0 7.6 7.0 6.5 2022 2023 Q1 2024 Q2 2024
Slide 11: Credit growth in target segments
Credit growth in target segments ↗︎ Total Loans ↗︎ Mortgages 138.3 3.4% 433.8 4.7% 132.1 419.5 Q4 2023 Q2 2024 Q4 2023 Q2 2024 ↗︎ Middle-Market ↗︎ Corporate 63.8 133.8 2.0% 5.1% 62.6 127.4 Q4 2023 Q2 2024 Q4 2023 Q2 2024 (NIS Billions) 11 Corporate includes Corporate and Real-Estate. The growth is m
Slide 12: Expanding and diversifying deposit base
Expanding and diversifying deposit base ↗︎ Core Deposits ↗︎ Diversified deposit base 224.2 3.4% 216.9 Capital Private Markets Individuals 27.3% 38.6% Q4 2023 Q2 2024 Corporate and Real Deposits from the Public Estate ↗︎ Deposits and Loan to Deposits 9.1% Loan / deposit ratio Commercial Small 557.1 5
Slide 13: Solid capital and leverage ratios
Solid capital and leverage ratios ↗︎ CET1 Ratio ↗︎ Total Capital Ratio ↗︎ TCE and Leverage Ratios 15.04% 14.72% TCE / Total Assets 14.29% 8.3% 7.4% 7.7% 12.04% 13.50% 13.50% 13.50% 11.66% 11.46% 6.65% 6.99% 6.36% 5.5% 5.5% 5.5% 10.21% 10.22% 10.23% 2022 2023 H1 2024 2022 2023 H1 2024 2022 2023 H1 20
Slide 14: High share returns via dividends and buybacks
14 High share returns via dividends and buybacks ↗︎ Capital Return ▪ NIS 681 million dividend payout for Q2 2024 together with the 33% 40% 40% second tranche (NIS 227 million) of the NIS 1 billion total 2,348 share buyback plan. 1,748 2,013 ▪ Total capital return for Q2 2024 is equal to a 40% payout
Slide 15: Investment highlights
Investment highlights 1 Strong and consistent high ROE despite challenging economic backdrop 2 Operating leverage from best-in-class cost income ratio 3 Strong credit quality – income from specific provisions, low NPLs, low problematic debts 4 Strong capital position supporting growth and capital re
Slide 16: Slower growth in 2024
Slower growth in 2024 Economic fundamentals remain strong GDP (Real GDP Growth) Inflation slowing (Inflation Evolution) Israel 5.3% OECD 9.3% 3.0% 2.8% 2.9% 6.5% 2.5% 6.0% 4.9% 3.8% 1.8% 3.0% 2.0% 1.7% 1.4% 1.7% 1.8% 0.6% -0.7% -1.5% -4.2% 2019 2020 2021 2022 2023 2024E 2025E 2019 2020 2021 2022 202
Slide 17: Thank you / Q&A
Q2 2024 Results presentation Thank you / Q&A 17