Israel Discount Bank Limited Class A · TASE:DSCT
Israel Discount Bank Limited Class A — Q1 2025 Earnings Presentation
21 slides from Israel Discount Bank Limited Class A's earnings presentation, May 19, 2025
Slide 1: 1Q 2025 Review: Financial Highlights
1Q 2025 REVIEW Financial Highlights Investor Relations May 19, 2025
Slide 2: 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 1st quarter 2025 report, as well as in strategic updates referred to in the Bank’s reports. This presentation is not a substitute for the Bank’s 1st quarter 202
Slide 3: 1Q 2025 – Delivering Robust Performance
1Q 2025 – DELIVERING ROBUST PERFORMANCE NET INCOME ROE EFFICIENCY RATIO 1,036 M 13.0% 53.4% Banking in Israel * 890M 14.9% 45.3% DIVIDEND POLICY DIVIDEND PAYOUT + SHARE BUYBACK NII CHANGE CREDIT GROWTH QoQ QoQ 50% 30% + 10% 2.5% 2.1% ** Consolidated figures for banking operations of Discount & Merca
Slide 4: The Economy Is at Full Employment; GDP Growth Expected to Recover in 2025
THE ECONOMY IS AT FULL EMPLOYMENT GDP GROWTH IS EXPECT TO RECOVER IN 2025 The war has impacted GDP growth in 2024, Job market shows resilience and strength 6.5 with recovery anticipated in 2025 (%) (GDP growth, in %) 9.7 8.5 6.3 6.1 3.5 5.5 4.8 4.4 3.0 4.1 4.0 3.7 1.4 3.8 3.7 3.7 1.2 0.7 3.4 3.3 2.0
Slide 5: Despite Economic Stability, Growth Drivers Remain Uncertain
DESPITE ECONOMIC STABILITY, GROWTH DRIVERS REMAIN UNCERTAIN Housing Market Sales Decline After Robust 2024 Recovery Private Spending Remains Flat (Sales in units) (Purchase in Credit-Cards, Jan 2023 = 100) 136.5 10,209 129.4 8,277 114.6 114.0 100.0 7,256 109.7 86.6 6,585 17.9 Jan 23 Apr 23 Jul 23 Oc
Slide 6: Expectations for BoI to Slowly Reduce Rate; Inflation Expected to Converge
EXPECTATIONS FOR BOI TO SLOWLY REDUCE RATE INFLATION IS EXPECTED TO CONVERGE WITHIN LIMITS Bank of Israel holds Interest Rate – Slow decrease Inflation is projected to converge within BoI middle range (Market Expectations for BoI Rate at end of 2025 on specific dates, %) (Israel Inflation - CPI Forw
Slide 7: 1Q25 Financial Highlights
1Q25 FINANCIAL HIGHLIGHTS Net income reaches NIS 1,036m and ROE of 13.0% in 1Q25, with NII grew by 2.5% and fees by 3.8% QoQ. Strong Credit growth: Total credit grew by 2.1% QoQ and 9.3% YoY, with corporates growing by 3.2% QoQ, SME’s with 1.7% and households credit by 1.4%. Credit Loss Provision, s
Slide 8: Robust Credit Growth Driven by Corporate Segment & Households
ROBUST CREDIT GROWTH DRIVEN BY THE CORPORATE SEGMENT & HOUSEHOLDS Total Credit Well Balanced Loan Book Small businesses Corporates in NIS bn; growth % in NIS bn; growth % in NIS bn; growth % 9.3% 5.9% 14.5% 1.7% 3.2% 2.1% 292.0 12% 12% 80.0 44.0 44.7 77.5 42.2 285.9 69.9 28% 26% 267.1 1Q24 4Q24 1Q25
Slide 9: Credit Loss Expenses & NPL Ratio
CREDIT LOSS EXPENSES & NPL RATIO Credit Loss Provision remains low due to Reversal of Collective NPL/Total Credit* Ratio Returns to Pre-War Levels Allowances Provisions 800 0.86% To reflect improvements in macroeconomic parameters 0.83% 0.76% 0% and the financial condition of borrowers 750 0.69% 0.6
Slide 10: Increase in Recurring Revenues: NII & Fees
INCREASE IN RECURRING REVENUES NII & FEES Total Revenues 1Q25 1Q25 Financing Income From Current Operations decreases with vs. vs. BOI rate narrowing margins 1Q24 4Q24 Q-end 4.50% 4.50% 4.50% 4.50% 4.50% Avg.* 4.51% 4.50% 4.50% 4.50% 4.50% 3,973 3,964 5.5% -0.2% 2.0% 3,757 36 36 2 389 280 358 -2.3%
Slide 11: Expenses Are Contained
EXPENSES ARE CONTAINED Total Expenses NIS m 52.8% 51.3% 49.1% 55.5% 53.4% 6.7% * -4.0% 2,205 2,116 2,065 2,075 1,984 813 723 619 746 747 379 380 384 392 381 118 108 114 174 115 868 830 834 834 886 1Q24 2Q24 3Q24 4Q24 1Q25 11 Salary & related Maintenance Other Cost Income Ratio Awards and depreciatio
Slide 12: Robust and Diversified Funding Base with Strong Capital Ratio
ROBUST AND DIVERSIFIED FUNDING BASE WITH STRONG CAPITAL RATIO Diversified domestic public deposit base Capital ratio well above the regulatory requirement with 50% share of retail deposits Total Capital Ratio Tier I Capital Ratio Leverage Ratio Overseas 29% Households 13.49% 10.54% 6.8% QoQ QoQ QoQ
Slide 13: Contribution to Profit from Key Subsidiaries
CONTRIBUTION TO PROFIT FROM KEY SUBSIDIARIES 14.7% 15.0% 14.2% 13.2% 7.2% 14.5% In NIS m YoY growth in In NIS m 97 7.7% Total credit YoY growth in 208 (net) 81 13.9% Credit card 206 transactions 184 ROE Cost income ROE Net income 40.2% Ratio 1Q25 Net income 49 YoY growth in as reported 7.4% credit 1
Slide 14: To Summarize
TO SUMMARIZE Continuous strong results for 1Q25, with net income of 1.04 bil NIS, and ROE of 13.0%. Strong credit growth continues the momentum, with solid asset quality – Credit growth of 2.1% in 1Q25, across focused segments. Credit loss provisions: Low Collective allowances are reflecting the imp
Slide 15: Appendices
APPENDICES 15
Slide 16: Israel Discount Bank: P&L and Selected Ratios
ISRAEL DISCOUNT BANK: P&L AND SELECTED RATIOS NIS m 1Q25 4Q24 1Q24 vs.4Q24 vs.1Q24 Net interest income 2,655 2,591 2,537 2.5% 4.7% Credit loss expenses 114 88 82 29.5% 39.0% Non-interest financing income 280 389 358 )28.0%( )21.8%( Commissions 993 957 860 3.8% 15.5% Other income 36 36 2 - 1,700.0% T
Slide 17: Israel Discount Bank: Adjustments to P&L
ISRAEL DISCOUNT BANK: ADJUSTMENTS TO P&L NIS, m NIS m 1Q25 4Q24 1Q24 Reported net income 1,036 1,049 1,050 Realization of assets )24( Special Income tax 79 6 50 Effect of Settlement 6 Provisions stemming from the separation of ICC - 18 Total 55 30 50 Adjusted net income 1,091 1,079 1,100 17
Slide 18: Israel Discount Bank: Selected Balance Sheet Items
ISRAEL DISCOUNT BANK: SELECTED BALANCE SHEET ITEMS NIS m 31.3.25 31.12.24 31.3.24 Cash and deposits with banks 51,867 62,584 45,449 Securities 69,854 67,634 56,061 Securities borrowed or purchased under agreements to resell 1,406 1,000 930 Credit to the public 291,912 285,898 267,079 Provision for c
Slide 19: Mercantile: Financial Performance
MERCANTILE: FINANCIAL PERFORMANCE Main P&L and Balance Sheet metrics and selected ratios NIS m 1Q25 4Q24 1Q24 Vs. 4Q24 Vs. 1Q24 Net interest income 538 524 528 2.7% 1.9% Non-interest income 109 100 111 9.0% )1.8%( Total income 647 624 639 3.7% 1.3% Operating & other expenses 272 289 277 )5.9%( )1.8%
Slide 20: IDBBANK: Financial Performance
IDBBANK: FINANCIAL PERFORMANCE Main P&L and Balance Sheet metrics and selected ratios USD m 1Q25 4Q24 1Q24 Vs. 4Q24 Vs. 1Q24 Net Interest Income 90 86 81 4.7% 11.1% Non-Interest income (Expenses) 21 19 18 10.5% 16.7% Total Income 111.0 105.0 99 5.7% 12.1% Operating & Other Expenses 78 73 70 6.8% 11.
Slide 21: CAL: Financial Performance
CAL: FINANCIAL PERFORMANCE Main P&L and Balance Sheet metrics and selected ratios NIS m 1Q25 4Q24 1Q24 Vs. 4Q24 Vs. 1Q24 Income From Credit Card Transactions 518 503 438 3.0% 18.3% Credit Loss Expense 62 74 40 )16.2%( 55.0% Total Income 758 776 663 )2.3%( 14.3% Total Expenses (excluding credit loss