Mizrahi Tefahot Bank Ltd · TASE:MZTF
Mizrahi Tefahot Bank — Q3 2020 Earnings Presentation
31 slides from Mizrahi Tefahot Bank's earnings presentation, November 2020
Slide 1: Financial statements September 30, 2020
Financial statements September 30, 2020 1
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 2020 quarterly reports and/ or immediate reports, as well as the periodic, quarterly and an
Slide 3: Accounting effect of incorporation of Union bank into UMTB's consolidated financial reports
Accounting effect of incorporation of Union bank into UMTB’s consolidated financial reports Net value of Union bank’s assets consolidated 2,484 (shareholders equity) Total cost of acquisition )1,223( Issue of shares (1,207) Cash payment (16) Deferred credit balance from acquisition of Union Bank 1,2
Slide 4: Accounting effect of incorporation of Union bank into UMTB's consolidated financial reports
Accounting effect of incorporation of Union bank into UMTB’s consolidated financial reports Segment Including Union Excluding Union Addition (NIS m) Addition (%) bank bank Loans to the public (net) 241,765 216,777 24,988 12% Securities 18,258 9,233 9,025 98% Deposits from the public 276,156 239,403
Slide 5: Effect of Union bank transaction on market shares
Effect of Union bank transaction on market shares Total 22.0% 18.6% 15.8% 18.9% 19.7% 16.1% 16.3% 13.8% לציבור Loansאשראי to הציבור פיקדונות Deposits הון עצמי from Shareholders מאזן Total סך balance the public the public Equity sheet טפחות UMTBמזרחי אגוד Union bank 5 (1) As of Ju
Slide 6: Effect of Union bank transaction on market shares
Effect of Union bank transaction on market shares Total 10.1% 20.7% 10.4% 13.6% 39.2% 18.5% 20.5% 13.7% 16.1% 16.2% 10.5% 36.6% 15.0% 17.8% 13.7% 11.5% 8.3% 8.3% Credit אשראי Deposits פיקדונות Credit אשראי Deposits פיקדונות Credit אשראי Credit אשראי Deposits פיקדונות Credit אשראי Dep
Slide 7: Adjusting provisions to market conditions
Adjusting provisions to market conditions (NIS mil) Applying methodology for possible future impact of the Corona virus on economic conditions and regulatory guidance Segment 1-9/2020 1-9/2019 2019 Provision Rate of Provision Rate of Provision Rate of provision provision provision Housing loans 272
Slide 8: Adjusting provisions to market conditions
Adjusting provisions to market conditions Rate of provision Other credit Other credit Other credit 34.7% 1.55% 34.9% 34.4% 1.17% 0.87% Mortgages 0.66% Mortgages 0.59% 65.3% 0.50% 65.1% Mortgages 0.44% 0.19% 65.6% 0.15% 1Q/2020 2Q/2020 3Q/2020 8
Slide 9: Periodic tracking of clients return to orderly repayments according to deferrals ending times
Periodic tracking of clients return to orderly repayments according to deferrals ending times Requested deferrals of housing loans since the outbreak of the Corona virus situation until today totaled NIS 43 bil Balance of deferred loans: 22.5.2020 30.6.2020 31.10.2020 NIS 40 bil NIS 37 bil NIS 23 bi
Slide 10: Commercial loans deferred
Commercial loans deferred Requested deferrals of commercial loans since the outbreak of the Corona virus situation until today totaled NIS 5,728 mil Balance of deferred loans: 30.6.2020 31.10.2020 NIS 3,583 mil NIS 2,181 mil 10
Slide 11: Net profit
Net profit (NIS mil) 1,402 1,104 )1( 1,050 422 387 3Q/2019 3Q/2020 1-9/2019 1-9/2020 (1) Excluding revenues amounting NIS 82 million (net of taxes NIS 54 million) with respect to agreement with insurers to conclude derivative proceedings, 11 recorded in 1Q/2020.
Slide 12: Return on equity
Return on equity ROE target according to the strategic plan 12.4% 11.1% 11.5% 9.5% 9.0% )1( 8.6% 3Q/2019 3Q/2020 1-9/2019 1-9/2020 (1) Excluding revenues amounting NIS 82 million (net of taxes NIS 54 million) with respect to agreement with insurers to conclude derivative proceedings, 12 recorded in
Slide 13: Efficiency ratio
Efficiency ratio Cost/income ratio target according to the strategic plan 56.7% 54.6% 55.0% 52.8% )1( 50.8% 52.0% 3Q/2019 3Q/2020 1-9/2019 1-9/2020 (1) Excluding revenues amounting NIS 82 million (net of taxes NIS 54 million) with respect to agreement with insurers to conclude derivative proceedings
Slide 14: Continuous loan growth
Continuous loan growth (NIS mil) 210.2 214.5 216.8 204.7 194.4 181.1 171.3 159.2 138.6 147.6 2013 2014 2015 2016 2017 2018 2019 03/2020 06/2020 09/2020 14 (1) In annual terms
Slide 15: Continuous loan growth led by business and mortgages
Continuous loan growth led by business and mortgages (NIS mil) Business segment 30.09.20 31.12.19 30.09.19 % of change % of change 30.9.2020- 30.9.2020- )1( 31.12.2019 30.9.2019 Housing loans 142,155 134,637 132,371 7.5% 7.4% Households and Private banking 20,682 21,856 21,418 -7.1% -3.4% Small and
Slide 16: Continuous loan growth led by business and mortgages
Continuous loan growth led by business and mortgages (NIS mil) Business segment 30.09.20 31.12.19 30.09.19 % of change % of change 30.9.2020- 30.9.2020- )1( 31.12.2019 30.9.2019 Housing loans 142,155 134,637 132,371 7.5% 7.4% Households and Private banking 20,682 21,856 21,418 -7.1% -3.4% Small and
Slide 17: Government guaranteed special Corona program – Bank's share higher than its market share
Government guaranteed special Corona program – Bank’s share higher than its market share Market share of the Bank in Credit to small businesses ~ 20% Government guaranteed Corona program 11.8% for small and medium businesses: NIS 3.9 bil (granted, as of October 31, 2020) State guaranteed Corona Fina
Slide 18: Continuous deposit growth
Continuous deposit growth (NIS mil) 223.2 231.8 239.4 211.0 199.5 178.3 183.6 162.4 141.2 152.4 2013 2014 2015 2016 2017 2018 2019 03/2020 06/2020 09/2020 18 (1) In annual terms
Slide 19: Growth of core deposit
Growth of core* deposit (NIS mil) Deposits growth rate 15.2% 30.9.2019 30.9.2020 Rate of Segment change House holds and Private 16.5% 75,700 72,900 banking 32% 35% Small and micro 38.8% Total core deposits businesses Total core deposits NIS 134.9 bil 100,500 Medium NIS 163.7 bil 117,100 48% 24.2% 49
Slide 20: Financing revenues from current operations continue to grow despite erosion in margins
Financing revenues from current operations continue to grow despite erosion in margins (NIS mil) BoI rate: FED rate: 1-9/2019 0.25% 1-9/2019 2.33% 1-9/2020 0.15% 1-9/2020 0.47% 4,152 4,078 1,375 1,372 3Q/2019 3Q/2020 1-9/2019 1-9/2020 20
Slide 21: Increase in commissions
Increase in commissions (NIS mil) 1,199 1,143 21
Slide 22: Expenses
Expenses (NIS mil) Annual growth target according to the strategic plan – 6% Salaries Operating and other expenses 1,934 2,995 2,944 1,859 1-9/2019 1-9/2020 1-9/2019 1-9/2020 22
Slide 23: Bank Yahav business results continue to improve
Bank Yahav business results continue to improve 78% 76.6% 76.2% 77.3% 13% 75.5% 11.3% 12% 76% 11.0% 74% 10.2% 11% 10% 72% 9% 70% 7.4% 7.1% 70.7% 8% 68% 6.2% 7.1% 68.4% 7% 66% 68.0% 6% 64% 5% 62% 4% 2014 *2015 2016 2017 2018 2019 1-9/2020 להון ROEתשואה יעילות יחס Cost/income ratio 23 * 2015 r
Slide 24: Financial Statements
Financial Statements 24 2019 יולי
Slide 25: Net profit and ROE
Net profit and ROE (NIS mil) 15.8% 576 11.1% 11.5% 11.3% 422 440 9.5% 404 9.1% 9.0% 387 357 360 7.7%(1) 303 Q1/2019 Q2/2019 Q3/2019 Q4/2019 Q1/2020 Q2/2020 Q3/2020 (1) Excluding revenues amounting NIS 82 million (net of taxes NIS 54 million) with respect to agreement with insurers 25 to conclude der
Slide 26: Condensed P&L report
Condensed P&L report (NIS mil) 1-9/2020 1-9/2019 % of change Interest revenue, net 4,134 3,988 3.7 Non interest revenues 1,529 1,497 2.1 Total 5,663 5,485 3.2 Expenses with respect to credit losses 932 245 280.4 Operating and other expenses 2,944 2,995 )1.7( Net profit 1,104 1,402 )21.3( 26
Slide 27: Financing revenues
Financing revenues (NIS mil) Rate of 1-9/2020 1-9/2019 change Interest revenues, net 4,134 3,988 Non-interest financing revenues 194 293 Total financing revenues 4,328 4,281 1.1 Less: Linkage differentials with respect to CPI position )105( 112 Revenues from collection of interest on troubled 27 27
Slide 28: Provisions / loans to the public
Provisions / loans to the public 0.66% 0.59% 0.50% 0.23% 0.20% 0.15% 0.14% Q1/2019 Q2/2019 Q3/2019 Q4/2019 Q1/2020 Q2/2020 Q3/2020 28
Slide 29: Total balance sheet items development
Total balance sheet items development (NIS mil) Including Excluding Union Union % of change excluding 30.9.2020 30.9.2020 30.9.2019 Union Total balance sheet 347,050 300,884 267,001 12.7 Loans to the public, net 241,765 216,777 202,578 7.0 Deposits from the public 276,156 239,403 207,832 15.2 Securi
Slide 30: Capital adequacy
Capital adequacy 13.75% 13.88% 13.65% 13.41% Total Ratio 10.13% 10.14% 10.06% 9.98% Tier 1 30.9.2019 31.12.2019 30.9.2020 30.9.2020 Excluding Union Including Union BoI minimum 9.83% 9.83% 8.76% 8.71% Tier 1 requirement 13.33% 13.33% 12.26% 12.21% Total Ratio 30
Slide 31: Equity
Equity (NIS mil) 18,272 15,740 16,033 17,065)1( 30.9.2019 31.12.2019 30.9.2020 (1) Excluding Union 31