Bank Leumi Le-israel B.m. · TASE:LUMI

Bank Leumi Le-israel B.m — Q2 2019 Earnings Presentation

16 slides from Bank Leumi Le-israel B.m's earnings presentation, 2019

  1. Slide 1: Q2 2019 Results Presentation

    Q2 2019 RESULTS PRESENTATION

  2. Slide 2: Disclaimer

    The conference call does not replace the need to review the latest periodic/quarterly reports containing full information, including forward looking, as defined in the Israeli Securities Law. DISCLAIMER This document and the information contained herein – 1. Has been prepared by Bank Leumi le-Israel

  3. Slide 3: Highlights

    Highlights • Updated Wage Agreement Key Business • New Early Retirement Program Developments • Launching Relocation of Headquarters from Tel Aviv • ROE H1 2019 at 11.4%, up from 9.9% in H1 2018 • Significant Increase in Income Financial Highlights • Ongoing Improvement in Cost Income Ratio • CET1 at

  4. Slide 4: Year-over-Year, Core Business Continues to Improve

    Year-over-Year, Core Business Continues to Improve COST INCOME CREDIT LOSS LEVERAGE ROE NIM NPL RATIO CET1 RATIO EXPENSES RATIO H1 2019 10.2% 2.23% 55.5% 0.19% 0.76% 7.14% 0.95% NPL Ratio 11.65% H1 2018 9.4% 2.14% 62.0% 0.05% 0.96% 7.11% 11.28% Net of the effect of Leumi Card as per the pro-forma fi

  5. Slide 5: Quarterly Year-over-Year Progress

    Quarterly Year-over-Year Progress COST INCOME CREDIT LOSS LEVERAGE ROE NIM NPL RATIO CET1 RATIO EXPENSES RATIO Q2 2019 10.6% 2.38% 53.3% 0.41% 0.76% 7.14% 0.95% NPL Ratio 11.65% Q2 2018* 10.4% 2.35% 60.5% (0.05)% 0.93% 7.11% 11.28% *Net of the effect of Leumi Card as per the pro-forma financial stat

  6. Slide 6: Revenue Breakdown

    Revenue Breakdown Total Income Up Finance Income 19.3% 5,270 4,417 4,586 14.7% 15.2% 4,276 7,021 2,799 2,429 Net Interest 6,122 2,466 Income 2,339 Non-interest Financing Income 90 333 141 684 11.1% Q2 2018* Q2 2019* H1 2018* H1 2019* 3,660 Fees and Commissions 3,290 1.4% 1,649 1,626 0.7% 823 817 Q2

  7. Slide 7: 2019 - Disciplined Expenses and Substantially Lower CIR

    2019 - Disciplined Expenses and Substantially Lower CIR Expenses Improved CIR 2.7% 3,795 3,896 2,152 2,261 62.0% 60.5% 2.0% 55.5% 1,990 1,950 53.3% Total Salary & Related 1,153 1,125 Expenses 1,643 1,635 Maintenance & Depreciation 837 825 Expenses and Others Q2 2018* Q2 2019 H1 2018* H1 2019 Q2 2018

  8. Slide 8: Loan Growth in Line with Strategy

    Loan Growth in Line with Strategy Total Middle-Market 13% 20% 5.9% Retail 39.4 Mortgages 37.2 23% 277.1B Middle-Market Corporate 30% Other 14% Q2 2018 Q2 2019 Mortgages Corporate 4.4% 13.4% 83.6 80.1 63.5 56.0 Q2 2018 Q2 2019 Q2 2018 Q2 2019 (NIS Billions) Corporate includes Corporate and Real-Estat

  9. Slide 9: Solid and Diverse Deposit Base. Conservative, Well-funded Portfolio

    Solid and Diverse Deposit Base. Conservative, Well-funded Portfolio 373.2 350.0 362.5 364.6 346.9 Deposits from the Public June 30, 2019 328.7 300.0 100% 303.4 Retail 286.0 84% 7% 77% Small Businesses 250.0 74% 21% 42% Commerical 200.0 Corporate & Real 6% Estate Capital Markets 150.0 14% 10% Subsidi

  10. Slide 10: Strong Capital Generation and Adequacy Ratios

    Strong Capital Generation and Adequacy Ratios Capital Up, CET1 Well-above Target – Enabling Returns to Shareholders TCR 15.08% CET1 11.65% Min. 10.5% 35.3 35.8 33.2 31.3 28.8 25.8 Dec 31, 2014 Dec 31, 2015 Dec 31, 2016 Dec 31, 2017 Dec 31, 2018 June 30, 2019 (NIS Billions) 10

  11. Slide 11: High Share Returns via Dividend and Buyback

    High Share Returns via Dividend and Buyback Return to Shareholders Dividends • 40% quarterly payout ratio • 4% annualized dividend yield 2,003 1,107 YTD Buyback Plan in Place 1,303 Utilized NIS 301 million of the NIS 700 969 Up to NIS 700 806 million plan (August 13) 700 Million Buyback plan 301 - ~

  12. Slide 12: Wrapping Up – Strong Start to the Year

    Wrapping Up – Strong Start to the Year Profitability • High ROE (11.4% H1, 10.6% Q2) – Revenues and Profitability Up • Consistent Improvement in the Cost Income Ratio Loans and Deposits • Selective Credit Growth Aligned with Strategy • Diversified, Increased Deposit Base with Low L/D Ratio • High Ca

  13. Slide 13: Q&A

    Q&A

  14. Slide 14: Thank You

    THANK YOU

  15. Slide 15: Appendix

    APPENDIX

  16. Slide 16: Macro Profile – a Positive for Leumi

    Macro Profile – a Positive for Leumi E2020* E2019* 2018 2017 2016 GDP, rate of change, real terms 3.6% 2.9% 3.3% 3.5% 4.0% Private Consumption 3.3% 3.6% 3.9% 3.4% 6.4% Current account surplus, % of GDP 2.8% 2.9% 3.0% 2.9% 3.8% Government budget deficit, % of GDP (3.5%) (4.1%) (2.9%) (1.9%) (2.1%) Go

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