Mizrahi Tefahot Bank Ltd · TASE:MZTF

Mizrahi Tefahot Bank — Q3 2018 Earnings Presentation

28 slides from Mizrahi Tefahot Bank's earnings presentation, November 2018

  1. Slide 1: Financial Statements

    MIZRAHI TEFAHOT Financial Statements September 2018 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 2018 quarterly reports and/ or immediate reports, as well as the periodic, quarterly and ann

  3. Slide 3: Forward looking statement – the strategic plan

    Forward looking statement – the strategic plan Developments in the third quarter of 2018: In these financial reports, the capital adequacy presented is: Tier 1 capital ratio of 10.11% and total capital ratio of 13.41% (see Note 9 to the financial reports). The bank’s Board of Directors has not annou

  4. Slide 4: High net profit in Q3/2018 derives from core banking activity

    High net profit in Q3/2018 derives from core banking activity with no significant extraordinary effects Net profit 1,269 454 982 1,004 261 1-9/2017 1-9/2018 1-9/2018 3Q2017 3Q2018 **‫הפרשה‬ ‫בנטרול‬ Excluding provision * The net profit from ongoing activity of UMTB excluding the provision for the US

  5. Slide 5: ROE

    ROE ROE ROE target for 2021 According to the 13.4% strategic plan 12.3% 10.1% 9.7% 11.5% 8.0% 1-9/2017 1-9/2018 1-9/2018 3Q2017 3Q2018 **Excluding ‫בנטרול הפרשה‬ provision * The ROE from ongoing activity of UMTB excluding the provision for the US investigation was calculated taking into account the

  6. Slide 6: Cost/income ratio

    Cost/income ratio Cost/ income ratio Cost/income ratio target for 2021 according to the strategic plan 67.2% 60.7% 62.1% 55.5% 54.5% Lower than 55% 1-9/2017 1-9/2018 1-9/2018 *‫בנטרול הפרשה‬ * Excluding provision 3Q2017 3Q2018 * The efficiency ratio from ongoing activity of UMTB excluding the provis

  7. Slide 7: Continue to increase the Equity base (NIS mil)

    Continue to increase the Equity base (NIS mil) Average annual growth rate 9.2% 14,441 13,685 12,714 11,847 10,797 9,681 8,730 2012 2013 2014 2015 2016 2017 3Q2018 Q3 2018 7

  8. Slide 8: Continuous loan growth

    Continuous loan growth Credit to the public 189,796 NIS mil 181,118 171,341 159,204 147,569 138,565 128,651 2012 2013 2014 2015 2016 2017 3Q2018 Q3 2018 Average annual growth rate 7% 8

  9. Slide 9: Credit growth in all segments

    Credit growth in all segments Loans to the public (NIS mil) 30.9.2018 30.9.2017 % of change Housing loans 123,848 118,685 4.4% Households and 20,491 19,511 5.0% Private banking Small and micro 18,428 16,114 14.4% businesses Medium businesses 6,055 5,642 7.3% Large businesses and 17,197 15,448 11.3%

  10. Slide 10: Credit growth in all segments – led by business segments

    Credit growth in all segments – led by business segments Loans to the public (NIS mil) 30.9.2018 30.9.2017 % of change Housing loans 123,848 118,685 4.4% Households and 20,491 19,511 5.0% Private banking Small and micro 18,428 16,114 14.4% businesses Medium businesses 6,055 5,642 7.3% 40,425 45,547

  11. Slide 11: Double digit average annual growth rate in credit to small and micro businesses

    Double digit average annual growth rate in credit to small and micro businesses since the beginning of the new strategic plan Credit to small and micro business (NIS mil) Average annual growth rate of 12% 18,428 15,122 31.12.2016 1Q2017 30.9.2018 1Q2018 11

  12. Slide 12: Continuous deposit growth

    Continuous deposit growth Deposits from the public NIS mil 192,943 183,573 178,252 162,380 152,379 141,244 128,081 2012 2013 2014 2015 2016 2017 3Q2018 Q3 2018 Average annual growth rate 7.4% 12

  13. Slide 13: Financing revenues from current operations continue to grow (NIS m)

    Financing revenues from current operations continue to grow (NIS m) 1,253 1,221 1,141 1,124 1,095 1,067 1,047 1,018 990 946 922 898 909 854 849 1Q2015 2Q2015 3Q2015 4Q2015 1Q2016 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 3Q2017 4Q2017 1Q2018 2Q2018 3Q2018 13

  14. Slide 14: Growth in financing revenues in all business segments

    Growth in financing revenues in all business segments Double digit growth in all business segments )Financing revenues (NIS m 1-9/2018 1-9/2017 of change % Housing loans 1,118 956 16.9% Households and 997 887 12.4% private banking Small and micro 738 654 12.8% businesses Medium businesses 178 153 16

  15. Slide 15: Mortgages –balance and revenues

    Mortgages –balance and revenues* 323 333 310 307 284 275 262 249 244 235 215 Total balance (average)(NIS, bil) Total interest revenues, net (NIS, mil) * Operating segments in conformity with management approach. Note 12 to quarterly reports 15

  16. Slide 16: After new IT system successful implementation, Yahav bank presents strong business results

    After new IT system successful implementation, Yahav bank presents strong business results 78% 77.3% 11% 77% 76.6% 76.2% 10.1% 10% 76% 75.5% 75% 9% 74% 8% 7.4% 73% 7.1% 7.1% 72% 6.2% 7% 71% 6% 71.1% 70% 5% 69% 68% 4% 2014 *2015 2016 2017 1-9/2018 ‫להון‬ ROE‫תשואה‬ ‫יעילות‬ ‫ יחס‬ratio Cost/income *

  17. Slide 17: Becoming a significant financial assets administrator

    Becoming a significant financial assets administrator Financial assets administration services Segment 30.9.2018 30.9.2017 % of change Provident funds operation 82,113 76,192 7.8 Trustee assets 75,926 77,275 )1.7( Mutual funds operation 17,204 16,240 5.9 Other managed assets 14,364 11,640 23.4 17

  18. Slide 18: Financial results

    oo MIZRAHI TEFAHOT Financial results 18

  19. Slide 19: Net profit (NIS mil)

    Net profit (NIS mil) 454 400 365 343 321 261 (1) 207 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2017 2018 (1) Net Profit excluding the impact of provision with respect to the US DOJ investigation totaled 472 NIS mil. 19

  20. Slide 20: Net profit - ROE

    Net profit - ROE 13.4% 12.7% 11.2% 10.4% 10.3% 8.0% )1( 6.1% Q1 Q2 Q3 Q4 Q1 Q2 Q3 2017 2018 (1) ROE excluding the impact of US DOJ investigation - 14.1% 20

  21. Slide 21: Equity (NIS mil)

    Equity (NIS mil) 14,441 13,399 13,685 30.9.2017 31.12.2017 30.9.2018 21

  22. Slide 22: Loans to the public (NIS bil)

    Loans to the public (NIS bil) 189.8 181.1 171.3 159.2 147.6 31.12.2014 31.12.2015 31.12.2016 31.12.2017 30.9.2018 22

  23. Slide 23: Deposits from the public (NIS bil)

    Deposits from the public (NIS bil) 192.9 183.6 178.2 162.4 152.4 31.12.2014 31.12.2015 31.12.2016 31.12.2017 30.9.2018 23

  24. Slide 24: Financing Revenues (NIS mil)

    Financing Revenues (NIS mil) Rate of 1-9/2017 1-9/2018 change Interest revenues, net 3,211 3,662 Non-interest financing revenues 81 324 Total financing revenues 3,292 3,986 21.1 Less: Linkage differentials with respect to CPI position 22 165 Revenues from collection of interest on troubled debt 33 2

  25. Slide 25: Commissions (NIS mil)

    Commissions (NIS mil) 1,091 1,056 1-9/2017 1-9/2018 25

  26. Slide 26: Provisions / loans to the public

    Provisions / loans to the public 0.13% 0.09% Q3 Q3 2017 2018 26

  27. Slide 27: Cost / income ratio

    Cost / income ratio )1( 71.7 67.2 59.0 58.7 59.1 56.3 54.5 Q1 Q2 Q3 Q4 Q1 Q2 Q2 2017 2018 (1) Cost/income ratio excluding the impact of US DOJ investigation – 53.8% 27

  28. Slide 28: Capital adequacy

    Capital adequacy 13.48% 13.94% 13.41% Total Ratio Tier I 10.16% 10.20% 10.11% 30.9.2017 31.12.2017 30.9.2018 28

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