Mizrahi Tefahot Bank Ltd · TASE:MZTF

Mizrahi Tefahot Bank — Q2 2018 Earnings Presentation

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

  1. Slide 1: Financial Statements June 2018

    MIZRAHI TEFAHOT Financial Statements June 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: The US DOJ investigation

    The US DOJ investigation Forward-Looking Information – The Strategic Plan For details regarding the bank’s targets and its business strategy for the years 2017-2021, see the Targets and Business Strategy chapter of the 2017 annual report of the Board of Directors and management. On August 7th, 2018,

  4. Slide 4: Net profit (NIS mil)

    Net profit (NIS mil) 815 472 721 400 550 207 1H2017 1H2018 1H2018 2Q2017 2Q2018 2Q2018 * *Excluding ‫בנטרול הפרשה‬ provision **‫הפרשה‬ ‫בנטרול‬ Excluding provision * The net profit from ongoing activity of UMTB excluding the provision for the US investigation was calculated taking into account the p

  5. Slide 5: ROE

    ROE ROE target for 2021 According to the strategic plan 14.1% 12.7% 11.4% 12.0% 8.1% 11.5% 6.1% 1H2017 1H2018 1H2018 2Q2017 2Q2018 2Q2018 *‫הפרשה‬ ‫בנטרול‬ * Excluding provision **‫הפרשה‬ ‫בנטרול‬ Excluding provision * The ROE from ongoing activity of UMTB excluding the provision for the US investig

  6. Slide 6: Cost/income ratio

    Cost/income ratio Cost/income ratio target for 2021 according to the strategic plan 71.7% 65.9% 57.5% 56.2% 56.3% 53.8% Lower than 55% 1H2017 1H2018 1H2018 2Q2017 2Q2018 2Q2018 **‫הפרשה‬ ‫בנטרול‬ Excluding provision **‫הפרשה‬ ‫בנטרול‬ Excluding provision * The efficiency ratio from ongoing activity

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

    Continue to increase the Equity base (NIS mil) Average annual growth rate 9.3% 13,986 13,685 12,714 11,847 10,797 9,681 8,730 2012 2013 2014 2015 2016 2017 Q2 2018 2Q2018 7

  8. Slide 8: Continuous loan growth

    Continuous loan growth Credit to the public 187,055 NIS mil 181,118 171,341 159,204 147,569 138,565 128,651 2012 2013 2014 2015 2016 2017 2Q2018 Q2 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) 30.6.2018 30.6.2017 % of change Housing loans 122,078 117,585 3.8% Households and 20,757 19,155 8.4% Private banking Small and micro 17,775 16,169 9.9% businesses Medium businesses 5,822 5,615 3.7% Large businesses and 17,049 15,444 10.4% I

  10. Slide 10: Credit growth in all segments

    Credit growth in all segments Loans to the public (NIS mil) 30.6.2018 30.6.2017 % of change Housing loans 122,078 117,585 3.8% Households and 20,757 19,155 8.4% Private banking Small and micro 17,775 16,169 9.9% businesses Medium businesses 5,822 5,615 3.7% 40,393 44,220 Large businesses and 17,049

  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 11.4% 17,775 15,122 31.12.2016 1Q2017 30.6.2018 1Q2018 11

  12. Slide 12: Continuous deposit growth

    Continuous deposit growth Deposits from the public NIS mil 189,900 183,573 178,252 162,380 152,379 141,244 128,081 2012 2013 2014 2015 2016 2017 2Q2018 Q2 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) 1,201 1,136 1,124 1,095 1,067 1,047 1,018 990 946 922 909 898 854 849 1Q2015 2Q2015 3Q2015 4Q2015 1Q2016 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 3Q2017 4Q2017 1Q2018 2Q2018 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 H1 2018 H1 2017 of change % Housing loans 729 624 16.8% Households and private banking 657 582 12.9% Small and micro businesses 477 423 12.8% Medium businesses 117 101 15.8%

  15. Slide 15: Mortgages – balance and revenues

    Mortgages –balance and revenues* 310 323 307 284 275 262 249 244 235 215 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% 10.0% 10% 76% 75.5% 75% 9% 74% 8% 7.4% 73% 7.1% 7.1% 72% 6.2% 71.6% 7% 71% 6% 70% 5% 69% 68% 4% 2014 *2015 2016 2017 1H2018 H1 2018 ‫להון‬ ROE ‫תשואה‬ ‫יעילות‬ ‫ יחס‬ratio Cost/in

  17. Slide 17: Progress in one of the three main strategic plan pillars

    Progress in one of the three main strategic plan pillars - becoming a significant financial assets administrator in the system Financial assets administration services Segment 30.6.2018 30.6.2017 % of change Provident funds operation 80,257 76,240 5.3% Trustee assets 76,025 75,614 0.5% Mutual funds

  18. Slide 18: Financial results

    oo MIZRAHI TEFAHOT Financial results 18

  19. Slide 19: Net profit (NIS mil)

    Net profit (NIS mil) 400 365 343 321 261 (1) 207 Q1 Q2 Q3 Q4 Q1 Q2 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 12.7% 11.2% 10.4% 10.3% 8.0% (1) 6.1% Q1 Q2 Q3 Q4 Q1 Q2 2017 2018 (1) ROE excluding the impact of US DOJ investigation - 14.1% 20

  21. Slide 21: Equity (NIS mil)

    Equity (NIS mil) 13,685 13,986 13,276 30.6.2017 31.12.2017 30.6.2018 21

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

    Loans to the public (NIS bil) 187.1 181.1 171.3 159.2 147.6 31.12.2014 31.12.2015 31.12.2016 31.12.2017 30.6.2018 22

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

    Deposits from the public (NIS bil) 189.9 183.6 178.2 162.4 152.4 31.12.2014 31.12.2015 31.12.2016 31.12.2017 30.6.2018 23

  24. Slide 24: Financing Revenues (NIS mil)

    Financing Revenues (NIS mil) Rate of H1- 2017 H1- 2018 change Interest revenues, net 2,200 2,426 Non-interest financing revenues 20 219 Total financing revenues 2,220 2,645 18.1 Less: Linkage differentials with respect to CPI position 84 133 Revenues from collection of interest on troubled debt 22 2

  25. Slide 25: Commissions (NIS mil)

    Commissions (NIS mil) 725 710 H1-2017 H1-2018 25

  26. Slide 26: Provisions / loans to the public

    Provisions / loans to the public 0.19% 0.09% Q2 Q2 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 Q1 Q2 Q3 Q4 Q1 Q2 2017 2018 (1) Cost/income ratio excluding the impact of US DOJ investigation – 53.8% 27

  28. Slide 28: Capital adequacy

    Capital adequacy 13.94% 13.42% 13.29% Total Ratio 10.15% 10.20% 9.95% Tier I 30.6.2017 31.12.2017 30.6.2018 28

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