Mizrahi Tefahot Bank Ltd · TASE:MZTF
Mizrahi Tefahot Bank — H1 2019 Earnings Presentation
31 slides from Mizrahi Tefahot Bank's earnings presentation, Jun 30, 2019
Slide 1: Financial Statements June 30, 2019
Financial Statements June 30, 2019
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 2019 quarterly reports and/ or immediate reports, as well as the periodic, quarterly and an
Slide 3: The strategy is working
The strategy is working 3
Slide 4: Net profit
Net profit (NIS mil) 78.2% 980 1,647* 178.3% 576 550 207 2Q2018 2Q2019 1H2018 1H2019 4
Slide 5: Net profit
Net profit (NIS mil) 20.2% 980 815 22% 1,647* 576 472 550 207 2Q2018 2Q2018 - Excld. 2Q2019 1H2018 1H2018 - Excld. 1H2019 Extraordinaries* Extraordinaries* *Excluding the provisions for the US Department of Justice's investigation, and taking into account provisions for bonuses in line with the leve
Slide 6: Net profit - ROE
Net profit - ROE (NIS mil) ROE target for 2021 according to the strategic plan 15.8% 13.3% 6.1% 8.1% 11.5% 2Q2018 2Q2019 1H2018 1H2019 6
Slide 7: Net profit - ROE
Net profit - ROE (NIS mil) ROE target for 2021 according to the strategic plan 15.8% 14.1% 13.3% 12.0% 6.1% 8.1% 11.5% 2Q2018 2Q2018 - Excld. 2Q2019 1H2018 1H2018 - Excld. 1H2019 Extraordinaries* Extraordinaries* *Excluding the provisions for the US Department of Justice's investigation, and taking
Slide 8: Cost/income ratio
Cost/income ratio 71.7% Cost/income ratio target for 2021 according to the strategic plan 65.9% 53.6% 49.9% 55% 2Q2018 2Q2019 1H2018 1H2019 8
Slide 9: Cost/income ratio
Cost/income ratio 71.7% Cost/income ratio target for 2021 according to the strategic plan 65.9% 55.9% 53.2% 53.6% 49.9% 55% 2Q2018 2Q2018 - Excld. 2Q2019 1H2018 1H2018 - Excld. 1H2019 Extraordinaries* Extraordinaries* *Excluding the provisions for the US Department of Justice's investigation, and ta
Slide 10: Continuous loan growth
Continuous loan growth Credit to the public (NIS mil) Average annual growth rate – 7% 200,728 194,381 181,118 171,341 159,204 147,569 138,565 128,651 2012 2013 2014 2015 2016 2017 2018 1H2019 1H/2019 10
Slide 11: Credit growth in all segments: retail and business
Credit growth in all segments: retail and business (NIS mil) 30.6.2019 30.6.2018 % of change Housing loans 130,140 122,168 6.5% Households and Private banking 21,165 20,688 2.3% Small and micro businesses 20,059 17,775 12.8% Medium businesses 7,196 5,822 23.6% Large businesses and Institutional inve
Slide 12: Significant growth in the business segments
Significant growth in the business segments (NIS mil) 30.6.2019 30.6.2018 % of change Housing loans 130,140 122,168 6.5% Households and Private banking 21,165 20,688 2.3% Small and micro businesses 20,059 17,775 Annual 12.8% growth of 49,423 44,199 Medium businesses 7,196 5,822 23.6% 11.8% in Large
Slide 13: Mortgage – continuous growth of balance and revenues
Mortgage – continuous growth of balance and revenues * 400.2 362 127.5 348 349 323 333 350.2 310 122 124 122.5 307 275 284 119 300.2 262 118 117.5 244 249 116 117 235 115 215 114 250.2 111 112 112.5 109 200.2 108 107.5 105 150.2 102 102.5 100.2 97.5 50.2 92.5 0.2 1Q2016 2Q2016 3Q2016 4Q2016 1Q2017 2
Slide 14: Continuous deposit growth
Continuous deposit growth Deposits from the public (NIS mil) Average annual growth rate 7.5% 205,188 199,492 183,573 178,252 162,380 152,379 141,244 128,081 2012 2013 2014 2015 2016 2017 2018 1H2019 1Q/2019 1H/2019 14
Slide 15: Financing revenues from current operations continue to grow
Financing revenues from current operations continue to grow (NIS mil) 1,357 Average annual growth rate – 10.1% 1,349 1,324 1,253 1,221 1,141 1,124 1,095 1,067 1,047 1,018 946 990 922 898 909 854 849 1Q2015 2Q2015 3Q2015 4Q2015 1Q2016 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 3Q2017 4Q2017 1Q2018 2Q2018 3Q2
Slide 16: Growth in financing revenues in all business segments
Growth in financing revenues in all business segments Financing revenues (NIS m) H1/2019 H1/2018 % of change Housing loans 818 729 12.2% Households and private banking 716 641 11.7% Small and micro businesses 567 479 18.4% Medium businesses 143 117 22.2% Large businesses and institutional investors
Slide 17: Increasing equity base
Increasing equity base (NIS mil) Average annual growth rate – 9.5% 15,740 14,681 13,685 12,714 11,847 10,797 9,681 8,730 2012 2013 2014 2015 2016 2017 2018 1H2019 1H/2019 17
Slide 18: Bank Yahav’s business results continue to improve
Bank Yahav’s business results continue to improve 76.6% 76.2% 77.3% 75.5% 11.6% 10.2% 7.4% 7.1% 70.7% 6.2% 7.1% 68.6% 2014 *2015 2016 2017 2018 1H2019 1H/2019 ROE Cost/income ratio * 2015 results exclude extraordinary profit from capital market activity, the non-adjusted ROE is 11.3%, and cost/incom
Slide 19: Becoming a significant financial assets administrator in the system
Becoming a significant financial assets administrator in the system Financial assets administration services 30.6.2019 30.6.2018 % of change Securities 416,893 240,374 73.4% Provident funds operation 89,914 80,257 12.0% Trustee assets and mutual funds operations 82,721 93,929 (11.9)% Other managed a
Slide 20: Double digit ROE despite dramatic increase in equity and low interest rate
Double digit ROE despite dramatic increase in equity and low interest rate ROE Equity 14% 13.0% 13.3% (NIS mil) 18,500 11.8% 12% 2% 10.2% 11.6%* 10.6% 10.2% 15,740 16,500 10% In black – 10.0% Bank of 8.5% Israel 8% 13,685 14,681 14,500 interest6% 1% 12,714 rate at 11,847 12,500 the end4% 10,797 of t
Slide 21: Return to dividend distribution – for the first time since Q1/2018
Return to dividend distribution – for the first time since Q1/2018 (NIS mil) Dividend distribution for the relevant period 404 392 Distributing 40% of net profit of 1H/2019 190 122 137 120 75 2010 2011 2012 2013 2014 2015 2016 2017 2018 1H2019 1H/2019 21
Slide 22: Financial results
Financial results 22
Slide 23: Net profit and ROE
Net profit and ROE (NIS mil) 15.8% 576 13.4% 454 11.3% 10.3% 404 343 6.1% 5.7% 207 202 Q1 Q2 Q3 Q4 Q1 Q2 2018 2019 23
Slide 24: Net profit and ROE
Net profit and ROE * * (NIS mil) 15.8% 576 14.1%* 13.4% 472 454 11.3% 10.7%* 10.3% 404 378 343 Q1 Q2 Q3 Q4 Q1 Q2 2018 2019 *Excluding the provisions for the US Department of Justice's investigation, and taking into account provisions for bonuses in line with the level of profitability from current o
Slide 25: Condensed P&L report
Condensed P&L report H1/2019 H1/2018 % of change Interest revenue, net 2,774 2,426 14.3 Non interest revenues 950 967 )1.8( Total 3,724 3,393 9.8 Expenses with respect to credit losses 175 172 1.7 Operating and other expenses 1,997 2,237 )10.7( Net profit 980 550 78.2 25
Slide 26: Financing revenues
Financing revenues (NIS mil) Rate of H1/2019 H1/2018 change Interest revenues, net 2,774 2,426 Non-interest financing revenues 146 219 Total financing revenues 2,920 2,645 10.4 Less Linkage differentials with respect to CPI position 193 133 Revenues from collection of interest on troubled debt 21 20
Slide 27: Provisions / loans to the public
Provisions / loans to the public 0.20% 0.19% 0.18% 0.16% 0.15% 0.13% 31.3.2018 30.6.2018 30.9.2018 31.12.2018 31.3.2019 30.6.2019 27
Slide 28: Operating and other expenses
Operating and other expenses H1/2019 H1/2018 % of change Salaries 1,284 1,126 14.0 Building and equipment maintenance and depreciation 385 375 2.7 Others 328 311 * 5.5 Total 1,997 1,812 * 10.2 *Excluding the provisions for the US Department of Justice's investigation. 28
Slide 29: Main balance sheet items development
Main balance sheet items development 30.6.2019 30.6.2018 % of change Total balance sheet 264,223 246,593 7.1 Loans to the public, net 200,728 187,055 7.3 Deposits from the public 205,188 189,900 8.1 Securities 8,816 9,926 )11.2( Equity 15,740 13,986 12.5 29
Slide 30: Capital adequacy
Capital adequacy 13.64% 13.87% Total Ratio 10.01% 10.23% Tier 1 31.12.2018 30.6.2019 30
Slide 31: Thank You
Thank You