Mizrahi Tefahot Bank Ltd · TASE:MZTF
Mizrahi Tefahot Bank — FY2014 Earnings Presentation
27 slides from Mizrahi Tefahot Bank's earnings presentation, 2015
Slide 1: Financial Statements December 2014
Financial Statements December 2014 Financial Statements 31 December 2008 1
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 2014 quarterly and annual reports and/ or immediate reports, as well as the periodic, quarte
Slide 3: Highest increase in Loans to the Public
Mizrahi Tefahot presents the highest increase in Loans to the Public (rate of growth 31.12.14/31.12.13) Loans to the Public as 147,569 263,980 249,481* 120,123 68,957 at 31.12.14 (NIS mil) 6.5% 4.9% 3.6% 3.7% 0.4% Mizrahi Poalim Leumi* Discount FIBI Tefahot SOURCE: Banks’ financial reports * Bank Le
Slide 4: Highest increase in Deposits from the Public
Mizrahi Tefahot presents the highest increase in Deposits from the Public (rate of growth 31.12.14/31.12.13) Deposits from the 152,379 297,230 286,632* 152,903 95,155 Public as at 31.12.14 (NIS mil) 7.9% 7.5% 6.8% 2.7% 2.4% Mizrahi Poalim Leumi* Discount FIBI Tefahot SOURCE: Banks’ financial reports
Slide 5: Mizrahi Tefahot – the most efficient bank
Mizrahi Tefahot – the most efficient bank Cost/income ratio* for 2014 85.3% 74.7% 76.4% 65.2% 60.8% Mizrahi Tefahot Poalim*** Leumi** FIBI Discount*** SOURCE: Banks’ financial reports * Cost / income ratio = non-interest expenses divided by total pre-provision revenues ** Bank Leumi – for the period
Slide 6: Mizrahi Tefahot presents the best ROE
Mizrahi Tefahot presents the best ROE (1-12.2014) 10.4% 9.0% 7.9% 7.0% 4.7% Mizrahi Poalim Leumi* Discount FIBI Tefahot SOURCE: Banks’ financial reports * Bank Leumi – for the period 1-9.2014 6
Slide 7: Double digit ROE despite macro conditions and regulatory requirements
Mizrahi Tefahot achieved double digit ROE despite macro conditions and regulatory requirements BoI interest rate: average BoI interest rate for 2014 – 0.6% compared with 1.39% for 2013 Inflation: CPI decreased in 2014 by 0.2% compared with an increase of 1.8% in 2013 The financial reports were impac
Slide 8: Best combination of high return and low risk
Continue to provide the best combination of high return and low risk Risk Adjusted Return on Capital, comparison of five major banking groups and banking system, average 2007-2013 ROE % The system Risk = SOURCE: Bank of Israel 8
Slide 9: Increasing equity while maintaining growth
Increasing equity while maintaining growth Equity* (NIS mil) +11.5% 10,987 9,852 8,811 7,666 7,130 2010 2011 2012 2013 2014 SOURCE: Bank’s Financial reports * Equity attributable to equity holders of the Bank 9
Slide 10: More challenging market share targets for 2017
Within the update of the strategic plan for 2017, more challenging market share targets were set Market Shares 30.9.2014 31.12. 2017 31.12.2017 Updated plan Original plan Credit to the Public 17.4% 19.0% 17.5% Balance Sheet Debt in Israel 18.6% 20.0% 18.0% Deposits from the Public 15.8% 17.5% 16.0%
Slide 11: Mortgage market: continue to lead while keeping high quality underwriting
Mortgage market: continue to lead (market share of 34%) while keeping high quality underwriting of mortgages Volume of new mortgage Main risk parameters for new mortgages loans in the system (NIS bil) (2011-2014, the system) 51.7 51.5 2011 2014 Average 54.5% LTV 50.6% 47.1 Average 44.8 32.8% payment
Slide 12: Significant growth in credit to SME
Significant growth in credit to SME Credit to SME (NIS mil) 9,018 17.6%+ 7,667 6,860 6,428 2011 2012 2013 2014 SOURCE: Bank’s Financial reports 12
Slide 13: Increasing activities with households
Increasing activities with households Continue to open new branches while improving efficiency of current branch layout The Arab Israeli sector – implementing the plan - opening branches. Launching wide range campaign Continue the differentiation of the service standard of the Bank (personal and hum
Slide 14: Co-operations with institutional entities
Co-operations with institutional entities Corporate credit: establishing syndications unit in the corporate division in 2014. special transactions and co-operations with institutional entities. Operating services for Provident funds: assets of provident funds to which the bank provided operating ser
Slide 15: Financial results
oOo MIZRAHI TEFAHOT Financial results 15
Slide 16: Net profit (NIS mil)
Net profit - (NIS mil) 1,078 1,083 2013 2014 16
Slide 17: Net profit by quarter (NIS mil)
Net profit - (NIS mil) 301 302 304 280 264 245 252 213 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2013 2014 17
Slide 18: Net profit - ROE
Net profit - ROE - (NIS mil) 11.5% 10.4% 2013 2014 18
Slide 19: Equity (NIS bil)
Equity (NIS bil) 11.0 9.9 8.8 7.7 7.1 31.12.2010 31.12.2011 31.12.2012 31.12.2013 31.12.2014 19
Slide 20: Loans to the public (NIS bil)
Loans to the public (NIS bil) 147.6 138.6 128.7 119.3 107.0 31.12.2010 31.12.2011 31.12.2012 31.12.2013 31.12.2014 20
Slide 21: Deposits from the public (NIS bil)
Deposits from the public (NIS bil) 152.4 141.2 128.1 119.2 106.0 31.12.2010 31.12.2011 31.12.2012 31.12.2013 31.12.2014 21
Slide 22: Total Revenues (NIS Mil.)
Total Revenues (NIS Mil.) (1) 4,987 4,963 4,787 2012 2013 2014 (1) Including interest revenues net, and total non interest revenues 22
Slide 23: Financing Revenues
Financing Revenues Rate of 2014 2013 change Interest revenues, net 3,375 3,464 Non-interest financing revenues 173 14 Total financing revenues 3,548 3,478 2.0 Less: Effect of application of FAS 91 153 - Linkage differentials with respect to CPI (11) 147 position Revenues from collection of interest
Slide 24: Commissions (NIS mil.)
Commissions (NIS mil.) 1,458 1,487 * 2013 2014 * Excluding the effect of FAS 91 of 92 NIS mil. Including said effect commissions amounted to 1,395. 24
Slide 25: Operating and other expenses (NIS mil)
Operating and other expenses (NIS mil) 1,869 1,836 2.5% increase in operating and other expenses 2014/2013 683 705 438 458 Salaries Building & Equipment Others maintenance & depreciation 2013 2014 25
Slide 26: Provisions/loans to the public (excluding mortgages)
Provisions/loans to the public (excluding mortgages) 0.68% 0.55% 0.33% 0.20% 2011 2012 2013 2014 26
Slide 27: Capital adequacy
Capital adequacy Basel II Basel III Basel III Total Ratio 13.04% 12.88% 13.03% Tier I 9.01% 8.73% 9.12% 31.12.2013 1.1.2014 31.12.2014 27