Mizrahi Tefahot Bank Ltd · TASE:MZTF

Mizrahi Tefahot Bank — FY2017 Earnings Presentation

33 slides from Mizrahi Tefahot Bank's earnings presentation, 2018

  1. Slide 1: Financial Statements December 2017

    Financial Statements December 2017 Financial Statements 31 December 2008 1

  2. 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 2017 annual and/or quarterly reports and/ or immediate reports, as well as the periodic, qua

  3. Slide 3: Continuous loan growth

    Continuous loan growth Credit to the public NIS mil 181,118 171,341 159,204 147,569 138,565 128,651 2012 2013 2014 2015 2016 2017 Average annual growth rate 7.1% 3

  4. Slide 4: Credit growth in all significant segments

    Credit growth in all significant segments Business segments lead the growth in accordance with the strategic plan Loans to the public (NIS mil) 2017 2016 % of change Housing loans 119,557 114,076 4.8% Households and 19,943 18,676 6.8% Private banking Small and micro 16,716 15,122 10.5% businesses Me

  5. Slide 5: Credit to the public - growing market share

    Credit to the public - growing market share UMTB’s market share in credit to the public 18.8% 18.6% 17.7% 17.3% 17.0% 16.0% 2012 2013 2014 2015 2016 3Q2017 3Q2017 5

  6. Slide 6: Growing market share in all business segments

    Growing market share in all business segments – in accordance with the strategic plan 9.5% 8.9% 8.4% 8.5% 7.5% 7.6% Small‫וזעירים‬ ‫ קטנים‬businesses and micro ‫עסקים‬ ‫בינוניים‬ Medium ‫עסקים‬ businesses ‫גדולים‬ Large ‫עסקים‬ businesses 30.9.2016 30.9.2017 6

  7. Slide 7: Continuous deposit growth

    Continuous deposit growth Deposits from the public NIS mil 183,573 178,252 162,380 152,379 141,244 128,081 2012 2013 2014 2015 2016 2017 Average annual growth rate 7.5% 7

  8. Slide 8: UMTB continue to increase its market share in deposits

    UMTB continue to increase its market share in deposits UMTB’s market share in deposits from the public 15.9% 15.6% 15.2% 15.1% 15.0% 13.8% 2012 2013 2014 2015 2016 3Q2017 3Q2017 8

  9. Slide 9: Even more significant growth in market share of core deposits

    …even more significant growth in market share of core deposits UMTB’s market share in deposits from the public (excluding Institutional investors) 15.1% 14.7% 13.8% 12.5% 11.9% 11.3% 2012 2013 2014 2015 2016 3Q2017 3Q2017 9

  10. Slide 10: Double digit growth in financing revenues from current operations

    Double digit growth in financing revenues from current operations both Q/Q and Y/Y Financing revenues from Financing revenues from current operations current operations 4,363 1,140 12.6% 12.0% 3,876 1,018 2016 2017 4Q2016 4Q2017 10

  11. Slide 11: Financing revenues from current operations continue to grow

    Financing revenues from current operations continue to grow (NIS m) 1,140 1,105 1,071 1,047 1,018 990 946 922 909 898 854 849 1Q2015 2Q2015 3Q2015 4Q2015 1Q2016 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 3Q2017 4Q2017 11

  12. Slide 12: Growth in financing revenues in all business segments

    Growth in financing revenues in all business segments Financing revenues (NIS m) 2017 2016 % of change Housing loans 1,311 1,100 19.2% Households and private banking 1,202 1,083 11.0% Small and micro businesses 895 781 14.6% Medium businesses 206 187 10.2% Large businesses and institutional investor

  13. Slide 13: Mortgages – balance and revenues

    Mortgages –balance and revenues* 307 284 275 262 249 244 114 115 235 111 112 215 109 108 105 102 100 8 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 Total balance Total interest revenues, net (average)(NIS, bil) (NIS, mil) * Operating segments in conformity with management approach. 13 Note 12 to qua

  14. Slide 14: Ensuring high quality underwriting of mortgage loans

    Ensuring high quality underwriting of mortgage loans Mortgage initiations (system)(NIS bil) Main risk parameters in mortgages UMTB’s market share (%) (system) 65 *2011 2017 59.1 52.2 52 53.8 54.6% Average LTV* 49.2% 47.2 Average 38.4 34.7 36 33.9 35.4 35 32.6% payment to income 26.2% Rate of mortgag

  15. Slide 15: Continue to open branches, while optimizing space

    Continue to open branches, while optimizing utilization of space of branches and headquarter Opening branches and reducing total square meters 195 150 187 184 145 185 177 140 175 135 165 130 125 155 120 145 115 110 135 105 125 100 2015 2016 2017 ‫סניפים‬ No. of ‫מספר‬ ‫ר‬Square "‫אלפי מ‬meters branc

  16. Slide 16: Increasing equity base

    Increasing equity base (NIS mil) Average annual growth rate 9.4% 13,685 12,714 11,847 10,797 9,681 8,730 2012 2013 2014 2015 2016 2017 Average annual growth of 1 billion NIS 16

  17. Slide 17: Double digit ROE despite increase in equity and low interest rate

    Double digit ROE despite dramatic increase in equity and extremely low interest rate Equity ROE (NIS mil) 13,685 16% 12,714 14% 13.1% 13,000 11.8% 11,847 12% 10.6% 10.2% 12,000 10% 2% 10.0% 10.2% 11,000 8% 9,681 10,797 10,000 6% 8,730 4% 1% 9,000 2% 0.25% 0.1% 0.1% 8,000 0.1% 0% 7,000 2012 2013 2014

  18. Slide 18: Record high net profit

    Record high net profit - an additional leap forward compared to previous years 1,347 1,266 1,134 1,092 1,083 1,060 1,029 2011 2012 2013 2014 2015 2016 2017 18

  19. Slide 19: Record high dividend distribution

    Record high dividend distribution Dividend distribution for the relevant period (NIS mil) 404 190 120 122 75 0 0 0 2010 2011 2012 2013 2014 2015 2016 2017 19

  20. Slide 20: Hybrid banking - Total digital

    In 2017 - competition in the market became more polar Hybrid banking - personal banking with technological solutions Total digital - It’s all about technology 20

  21. Slide 21: Financial results

    oo MIZRAHI TEFAHOT Financial results 21

  22. Slide 22: Net profit (NIS mil)

    oo MIZRAHI TEFAHOT Net profit (nis mil) 1,266 1,347 2016 2017 22

  23. Slide 23: Net profit (NIS mil)

    (ee) Net profit (nis mil MIZRAHI TEFAHOT 400 340 321 288 i : ; Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2016 2017 23

  24. Slide 24: Net profit - ROE

    oo MIZRAHI TEFAHOT Net profit - ROE 10.2% 2016 10.2% 2017

  25. Slide 25: Net profit - ROE

    es Net profit - ROE MIZRAHI TEFAHOT 12.7% 2017 25

  26. Slide 26: Equity (NIS bil)

    oo MIZRAHI TEFAHOT Equity (nis bil) 12.7 2016 2017 26

  27. Slide 27: Loans to the public (NIS bil)

    Loans to the public (NIS bil) 27

  28. Slide 28: Deposits from the public (NIS bil)

    Deposits from the public (NIS bil) 28

  29. Slide 29: Dividends (NIS mil)

    oo MIZRAHI TEFAHOT Dividends (nis mil) 190 2016 404 2017 29

  30. Slide 30: Total revenues (NIS mil)

    Total revenues (NIS mil) * Including interest revenues net, and non interest revenues 30

  31. Slide 31: Financing Revenues (NIS mil)

    Financing Revenues (NIS mil) Rate of 2016 2017 change Interest revenues, net 3,778 4,347 Non-interest financing revenues 295 136 Total financing revenues 4,073 4,483 10.1 Less: Linkage differentials with respect to CPI position (48) 32 Revenues from collection of interest on troubled debt 40 43 Gain

  32. Slide 32: Provisions / loans to the public

    Provisions / loans to the public 0.13% 0.12% 0.11% 2015 2016 2017 32

  33. Slide 33: Capital adequacy

    ae Capital adequacy MIZRAHI TEFAHOT 13.80% 13.94% Total Ratio Tier | 31.12.2016 31.12.2017 33

Mizrahi Tefahot Bank — FY2017 Earnings Presentation on 6ix