Israel Discount Bank Limited Class A · TASE:DSCT
Israel Discount Bank Limited Class A — Q2 2015 Earnings Presentation
17 slides from Israel Discount Bank Limited Class A's earnings presentation, Aug 19, 2015
Slide 1: Financial Results Q2-15
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Slide 2: P&L
P&L (NIS m) % change compared to Q2-14 Q1-15 Q2-15 Q2-14 Q1-15 Interest income, net 1,100 1,020 1,095 (0.5) 7.4 Loan loss provision (35) 32 (28) (20.0) - Net interest income after loan loss provision 1,135 988 1,123 (1.1) 13.7 Non-interest financing income 114 185 102 (10.5) (44.9) Commissions 637 6
Slide 3: Balance Sheet & Ratios
Balance Sheet & Ratios (NIS m) Balance Sheet % change compared to Q2-14 Q1-15(1) Q2-15 Q2-14 Q1-15 Total assets 196.3(1)(2) 207.8 203.7 3.8 (2.0) Credit to the public, net 115.2 121.7 120.3 4.4 (1.2) Securities 39.2 37.1 36.6 (6.6) (1.2) Deposits from the public 145.4 152.8 151.8 4.4 (0.7) Total equ
Slide 4: Financial Highlights of Q2-15
Financial Highlights of Q2-15 (compared to Q1-15) Capital CT-1 Basel III ratio increased to 9.5% Robust credit quality Asset Quality Negative LLP ratio due to recoveries 2.2% growth in consumer credit and 1.9% growth in SME credit Growth Subsidiaries growth Total expenses dropped by 1.0%
Slide 5: Sufficient Capital to Support the 5-Year Strategic Plan
Capital Sufficient Capital to Support the 5-Year Strategic Plan (NIS bln) Total Capital RWA CT-1 Ratio Basel II Basel III Basel II Basel III 142.5 13.5 141.7 13.3(1) 13.0(1) 140.1 9.5% 12.5 138.5 9.3% 12.1 8.6% 135.7 9.4% 9.4% 8.9% 2012 2013 2014 Q1-15 Q2-15 2012 2013 2014 Q1-15 Q2-15 2012 2013 2014
Slide 6: Robust Asset Quality
Asset Quality Robust Asset Quality (NIS m) Loan loss provision & ratios Loan loss provision LLP ratio 998 821 778 726 580 164 32 -28 0.83% 0.66% 0.65% 0.61% 0.49% 0.14% 0.10% (0.09%) 2009 2010 2011 2012 2013 2014 Q1-15 Q2-15 2013 2014 Q1-15 Q2-15 Impaired 4,168 2,838 3,286 3,194 Substandard 1,015 92
Slide 7: Continued Credit Growth in Focused Segments
Growth Continued Credit Growth in Focused Segments (NIS bln) Net Credit to the Public Balances Consumer Credit Balances(2) 1.5% 2.2% 1.3% 1.0% 21.5 1.0% 21.1 121.7 4.8% 20.8 3.3% 119.0 120.1 120.3(1) 20.5 115.2 1.2% 19.6 4.4% growth 9.7% growth Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q2-14 Q3-14 Q4-14 Q1-15 Q
Slide 8: Robust Subsidiaries' Performance
Growth Robust Subsidiaries’ Performance IDBNY CAL Net Income (USD m) (NIS m) ROE Excl. non-recurring items 40 42 32 14 14 13 2 7.9% 1.2% 6.7% 6.9% 7.9% 11.1% 15.5% Q2-14 Q1-15 Q2-15 Q2-14 Q1-15 Q2-15 Mercantile Discount Capital Markets (NIS m) (NIS m) 88 40 53 36 17 14 7.9% 19.3% 11.1% Q2-14 Q1-15 Q
Slide 9: IDBNY – Strong Profitability
Growth IDBNY – Strong Profitability (USD m) P&L and Balance Sheet % change compared to Q2-14 Q1-15 Q2-15 Q2-14 Q1-15 Net interest income 49 50 48 (2.0) (4.0) Loan loss provision 0 2 0 - - Non-interest income (2) 18 19 - 5.6 Operating & other expenses 45 47 46 2.2 (2.1) Net income 2 13 14 600.0 7.7 N
Slide 10: CAL - Credit Growth and Robust Profitability
Growth CAL- Credit Growth and Robust Profitability (NIS m) P&L and Balance Sheet % change compared to Q2-14(1) Q1-15(1) Q2-15 Q2-14 Q1-15 Credit card transactions 217 227 232 6.9 2.2 Net interest income 64 65 73 14.1 12.3 Non-interest financing income 4 4 5 25.0 25.0 Total income 285 296 310 8.8 4.7
Slide 11: Mercantile – Credit Growth and Robust Profitability
Growth Mercantile – Credit Growth and Robust Profitability (NIS m) P&L and Balance Sheet % change compared to Q2-14(1) Q1-15(1) Q2-15 Q2-14 Q1-15 Net interest income 197 217 207 5.1 (4.6) Loan loss provision (3) (2) (8) - - Non-interest income 76 121 81 6.6 (33.1) Operating & other expenses 216 198
Slide 12: Total Expenses Under Control
Costs Total Expenses Under Control (NIS m) Total expenses Salary & Related Maintenance & Depreciation Other 2,851 2,851 1.0% 10.4% 519 573 1,433 1,418 4.6% 1,418 1,355 0.5% 278 6.1% 295 572 575 260 13.5% 295 284 2.5% 291 291 286 1.7% 2.8% 1,760(1) 3.2% 1,703(3) 871 832 809(1) 832(2) 4.5% Q1-15 Q2-15
Slide 13: We are Working on Delivering our Promises
We are Working on Delivering our Promises Promised : Executed: Continued growth, primarily in 2.2% growth in consumer credit and 1.9% Growth focused segments growth in SME Improving branches’ effectiveness Branches’ improvement program on track Tight control over expenses Total expenses
Slide 14: 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 Decision
Slide 15: One Year Into the Strategic Plan: Early Signs of Trust
One Year Into the Strategic Plan Early Signs of Trust Top Israeli banks’ share price, since August 20, 2014, as an index 30% 30.7% 25% 21.9% 20% 21.3% 15% 11.8% 10% 5% 4.3% 0% -5% -10% -15% FIBI POLI MZTF LUMI DSCT 15
Slide 16: 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 16
Slide 17: 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 Q2-15 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