First International Bank Of Israel Ltd · TASE:FIBI
First International Bank Of Israel — Q1 2021 Earnings Presentation
20 slides from First International Bank Of Israel's earnings presentation
Slide 1: First International Bank of Israel Financial Results 31.3.21
FIRST INTERNATIONAL BANK OF ISRAEL Financial Results 31.3.21 1
Slide 2: Disclaimer
Disclaimer Without derogating from the generality of that stated in the terms of use, as detailed on the Internet website of The First International Bank of Israel Ltd. ("the Bank"), this presentation and its contents had been prepared by the Bank for its exclusive use, within the framework of the p
Slide 3: Q1 2021 Main Data, Income and Revenue
Q1 2021 Main Data, Income and Revenue Growth in credit Growth in client Growth in Growth in assets portfolio deposits total income (Quarter) (Quarter) (Quarter) +1.4%* +5.6%* +3.5%* 1,086 (+6%) 2.8% 38.2% 15.5% ROE Net income Improvement in Income from Tier 1 capital Ratio efficiency Ratio doubtful
Slide 4: Growth Through Efficiency
Growth Through Efficiency Total income before expenses for credit losses (NIS Million) Growth in credit to the public (NIS Billion) 4,344 93.6 4,122 4,160 92.2 3,494 3,752 88.8 81.2 73.4 2015 2017 2019 2020 Q1.2021 in 31.12.15 31.12.17 31.12.19 31.12.20 31.3.21 annual terms Client assets portfolio (
Slide 5: Continued Improvement in Efficiency Ratio
Continued Improvement in Efficiency Ratio 77.6% 69.5% 64.4% 61.8% 60.4% 2015 2017 2019 2020 Q1.2021 The Bank continued implementing its multi-year efficiency plan 5
Slide 6: Net Income and ROE
Net Income and ROE (NIS Millions) 13.0% 287 9.6% ROE 8.2% 210 Net income 171 Q1.20 Q4.20 Q1.21 Tier 1 capital Ratio 10.28% 11.18% 11.55% Bank of Israel interest rate (average) 0.25% 0.10% 0.10% 6
Slide 7: Income Statement Q1.2021
Income Statement Q1.2021 (NIS Millions) Change (NIS Millions) Q1.21 Q1.20 % Change before tax Interest income 670 658 12 2% Non-interest financing income 51 (3) 54 - Interest income, net 721 655 66 10% Expenses / (income) from credit losses (9) 157 (166) (106%) (0.04% - income compared to 0.71%- los
Slide 8: Income Statement Q1.2021 (continued)
Income Statement Q1.2021 (NIS Millions) continued Change (NIS Millions) Q1.21 Q1.20 % Change before tax Total operating and other expenses 656 637 19 3% Salaries and related expenses 398 379 19 5% Maintenance of buildings and equipment & depreciation 85 86 (1) - Amortization of intangible assets 26
Slide 9: Profit from Current Financing Activities
Profit from Current Financing Activities (NIS Millions) Change (NIS Millions) Q1.21 Q1.20 % Change (before tax) Interest Income, net 670 658 12 1.8% Non-interest financing income 51 (3) 54 Net financial earnings 721 655 66 10.1% Neutralizing financial earnings that are not from current activities: R
Slide 10: Income From Commissions
Income From Commissions (NIS Millions) 368 361 361 Q1.21 344 Q1.20 Q4.20 Q1.21 Q1.20 Q1.21 198 184 57 54 50 43 48 44 25 26 Transactions in Account Management Credit cards Conversion differencials Other Fees securities 10
Slide 11: Credit Portfolio
Credit Portfolio End of period (NIS billions) 93.6 Large 31.3.21 Businesses & Household & Institutional Private Entities 23% 20% 92.2 Medium Businesses 6% 91.1 Small Mortgages Businesses 31% 20% A diverse and high quality mix of credit 31.3.20 31.12.20 31.3.21 Households & Private: 54% of Credit Por
Slide 12: Credit to the Public as of 31.03.21
Credit to the Public as of 31.03.21 (NIS Millions) Mortgages 29.1 Households & Private 28.3 26.3 21.8 21.6 21.4 3.20 12.20 3.21 3.20 12.20 3.21 Large businesses Medium Businesses Small Businesses 5.9 18.9 18.8 5.4 5.5 17.9 18.1 16.7 17.1 3.20 12.20 3.21 3.20 12.20 3.21 3.20 12.20 3.21 12
Slide 13: Deferral of Credit Payments due to Corona – 31.3.21
Deferral of Credit Payments due to Corona – 31.3.21 Compared to other big Israeli banks Househol (NIS Millions) Small Median Large ds & Mortgage Total as of 31.12.20 Businesses Businesses Businesses Private The balance of payments actually deferred - FIBI 7 11 19 3 4 44 The balance of the credit for
Slide 14: Bank Increased its Credit Loss Reserves Due to Corona
Due to Corona Impact on Credit Losses: Bank Increased its Credit Loss Reserves The Bank has preserved credit loss reserves during the corona crisis Ratio of provision for 1.48% 1.44% credit losses to credit to the public 1.22% 1.11% Credit Loss reserves preservation as of 31.12.20 Provision for Cred
Slide 15: Expenses/(Income) from Credit Losses
Expenses/(Income) from Credit Losses Change compared Q1.21 2020 Q1.20 to Q1.20 Collective provision (12) 464 130 (142) Individual provision 3 - 27 24 Total (9) 464 157 (166) Total provision for Corona crisis (9) 436 129 (141) Collective provision rate (0.05%) 0.52% 0.59% Individual provision rate 0.
Slide 16: Maintained Strong Financial Strength
Maintained Strong Financial Strength Q1.21 2020 2019 2018 2017 Tier 1 capital ratio *11.55% 11.18% 10.81% 10.51% 10.38% Total ratio of capital to risk **13.74% 14.46% 13.70% 13.94% 13.94% assets LCR 140% 150% 128% 122% 123% Total ratio of deposits to credit 159% 156% 137% 133% 141% balance *3.3% abo
Slide 17: Maintained Strong Financial Strength
Maintained Strong Financial Strength Capital attributed to the shareholders of the Bank 167.8 172.5 135.7 134.1 141.1 Balance 8.568 9.141 9.478 7.756 8.093 Capital attributed to the shareholders of the Bank 31.12.17 31.12.18 31.12.19 31.12.20 31.3.21 Leverage ratio 5.50% 5.76% 5.81% 5.29% 5.31% Leve
Slide 18: Q1-21 Growth
Q1-21 Growth • Increase in credit balances - growth in Q1 2021 of ~1.4% (NIS 1.3 billion) Growth in retail (1.7%), housing loans (2.6%), medium-sized businesses (1.8%) and large businesses (2.5%). In past year, growth of ~2.8% (NIS 2.5 billion), mainly mortgages (10.6%) and small business sector (5%
Slide 19: Q1-21 Streamlining and Innovation
Q1-21 Streamlining and Innovation • Continued improvement in operating efficiency ratio at 60.4% compared to 62.2% in Q1 last year and 61.8% for 2020 as a whole. • Entering world of "digital wallets" - launched FIBI Pay app - a digital wallet for customers with an Android device and Apple Pay for iP
Slide 20: Q1-21 Strength
Q1-21 Strength Bank maintained a high level of financial strength • Capital ratios higher than the required regulatory minimum (11.55% compared to 8.28% required minimum) a high capital security cushion vs other banks in the system* (~3.3% above the required regulatory tier 1 capital ratio (8.3%); a
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