Israel Discount Bank Limited Class A · TASE:DSCT
Israel Discount Bank Limited Class A — Q3 2015 Earnings Presentation
19 slides from Israel Discount Bank Limited Class A's earnings presentation, Nov 19, 2015
Slide 1: Financial Results Q3-15
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Slide 2: Quarterly P&L
Quarterly P&L (NIS m) % change compared to Q3-14 Q2-15(6) Q3-15 Q3-14 Q2-15 Interest income, net 1,061 1,095 1,067 0.6 (2.6) Loan loss provision 40 (28) 85 112.5 - Non-interest financing income 148 102 30 (79.7) (70.6) Commissions 650 655 650 0.0 (0.8) Other income 2(1) 14 42 2,000.0 200.0 Total non
Slide 3: YTD P&L
YTD P&L (NIS m) 9M-14 9M-15 % change Interest income, net 3,179 3,182 0.1 Loan loss provision 80 89 11.3 Non-interest financing income 386 317 (17.9) Commissions 1,918 1,962 2.3 Other income 16(1) 78 387.5 Total non-interest income 2,320 2,357 1.6 Salaries and related 2,995(1)(2)(3) 2,523 (15.8) Mai
Slide 4: Balance Sheet & Ratios
Balance Sheet & Ratios (NIS m) % change compared to Sept-14 June-15 (4) Sept-15 Sept-14 June-15 Balance Sheet Total assets 200.0(1) 203.7 206.9 3.4 1.6 Credit to the public, net 119.0 120.3 123.6 3.9 2.8 Securities 39.5 36.6 39.3 (0.6) 7.3 Deposits from the public 145.4 151.8 152.5 4.9 0.5 Total equ
Slide 5: Financial Highlights of Q3-15
Financial Highlights of Q3-15 (compared to Q2-15) Capital CT-1 Basel III ratio kept at 9.5% while RWA increased by 2.7% Asset Robust credit quality Quality LLP ratio return to a more sustainable level Consumer credit grew by 2.3% (7.1% in the last 12 months) Growth SME credit grew by 2.3%
Slide 6: Sufficient Capital to Support the 5-Year Strategic Plan
Capital Sufficient Capital to Support the 5-Year Strategic Plan (NIS bln) Total Capital RWA(2) CT-1 Ratio Basel II Basel III Basel III 1.5% growth 9.5% 9.5% 143.8 9.4% 9.4% 142.6 5.8% growth 141.7 140.1 138.5 8.9% 13.7 13.3 13.5 13.0(1) 12.0(1) 2013 2014 Q1-15 Q2-15 Q3-15 2013 2014 Q1-15 Q2-15 Q3-15
Slide 7: Robust Asset Quality
Asset Quality Robust Asset Quality Loan loss provision & ratios (NIS m) Loan loss provision LLP ratio Cumulative - 0.1% 998 821 778 726 580 164 32 85 -28 0.83% 0.66% 0.65% 0.61% 0.49% 0.14% 0.10% (0.09%) 0.27% 2009 2010 2011 2012 2013 2014 Q1-15 Q2-15 Q3-15 Problematic credit risk, non performing as
Slide 8: Continued Credit Growth in Focused Segments
Growth Continued Credit Growth in Focused Segments (NIS bln) Net Credit to the Public Balances Consumer Credit Balances(1) 2.8% 2.3% 22.0 1.3% 2.2% 123.6 1.5% 21.5 1.0% 121.7 1.0% 119.0 21.1 20.8 20.5 120.1 1.2% 120.3 3.9% growth 7.1% growth Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q3-14 Q4-14 Q1-15 Q2-15 Q3-1
Slide 9: Robust Subsidiaries' Performance
Growth Robust Subsidiaries’ Performance IDBNY CAL (USD m) (NIS m) Net Income 15 ROE 13 14 43 42 42 Excl. non-recurring items 6.5% 6.9% 7.4% 15.4% 14.5% 14.8% Q3-14 Q2-15 Q3-15 Q3-14 Q2-15 Q3-15 Mercantile Discount Capital Markets (NIS m) (NIS m) 53 51 48 31 21 14 14 11.1% 6.8% 11.1% 9.6% Q3-14 Q2-15
Slide 10: IDBNY – Continued Credit Growth Strong Profitability
Growth IDBNY – Continued Credit Growth Strong Profitability (USD m) P&L and Balance Sheet % change compared to Q3-14 Q2-15 Q3-15 Q3-14 Q2-15 Net interest income 48 48 49 2.1 2.1 Loan loss provision 2 0 0 (100.0) - Non-interest income 19 19 17 (10.5) (10.5) Operating & other expenses 45 46 49 8.9 6.5
Slide 11: CAL - Credit Growth and Robust Profitability
Growth CAL- Credit Growth and Robust Profitability (NIS m) P&L and Balance Sheet % change compared to Q3-14 Q2-15 Q3-15 Q3-14 Q2-15 Credit card transactions 229 232 241 5.2 3.9 Net interest income 66 73 76 15.2 4.1 Non-interest financing income 1 5 3 200.0 (40.0) Total income 296 310 320 8.1 3.2 Tot
Slide 12: Mercantile – Credit Growth and Robust Profitability
Growth Mercantile – Credit Growth and Robust Profitability % change compared to (NIS m) P&L and Balance Sheet Q3-14 Q2-15 Q3-15 Q3-14 Q2-15 Net interest income 205 207 220 7.3 6.3 Loan loss provision (1) (8) 20 - - Non-interest income 94 81 96 2.1 18.5 Operating & other expenses 248(1) 210 225 (9.3)
Slide 13: Total Expenses Under Control
Costs Total Expenses Under Control (NIS m) Total expenses Salary & Related Maintenance & Depreciation Other 0.5% 4,294 4,271 1.7% 13.9% 772 879 1,418 1,420 1,443 1,420 0.3% 866 21.0% 869 295 3.7% 306 253(3) 306 1.0% 294(3) 291 294 294 2,656(4)(2)(3) 5.0% 2,523 832 1.4% 820 896(1)(2)(3) 820 8.8% Q2-1
Slide 14: Focusing on Core, Exiting Non-Core
Focus Focusing on Core, Exiting Non-Core DBLA activity sold Non-Core London branch closed Significant progress in reviewing the exit from the Swiss operation Signed agreement to merge DCM underwriting with CLAL Finance Underwriting Core Negotiation to acquire 49% in Diners (51% held by CAL
Slide 15: We are Working on Delivering our Promises
We are Working on Delivering our Promises Promised : Executed: Continued growth, primarily in 2.3% growth in consumer credit and SME Growth focused segments Branches’ improvement program on track Improving branches’ effectiveness Total expenses stayed flat, salary and related expenses Ti
Slide 16: Continued Focus on Execution
Continued Focus on Execution Continued growth, primarily in focused segments Growth Improving branches’ effectiveness: operational efficiency, branch focus on service and sales, customer service improvement Tight control over expenses Costs FTE restraint Real estate optimization ; sale of
Slide 17: 5 Quarters into the Strategic Plan Early Signs of Trust
5 Quarters into the Strategic Plan Early Signs of Trust Top Israeli banks’ share price, since August 20, 2014, as an index 30% 25% 20% 19.9% 15% 10% 7.0% 5% 4.2% 3.7% 0% -5% -8.5% -10% -15% FIBI POLI MZTF LUMI DSCT 17
Slide 18: Thank you. Stay Tuned.
Thank you. Stay Tuned. http://www.discountbank.co.il/IR Subscribe to receive email alerts. IR Contact: Tamar Koblenz Tamar.koblenz@dbank.co.il +972-3-5144496 18
Slide 19: Disclaimer
Disclaimer This document has been prepared by Israel Discount Bank Ltd. (the “Bank”) solely for use by the Bank in its presentation of its Q3-15 reports as well as strategic updates referred to in the Bank’s reports. The information contained herein may be partial and may include information that ha