Mizrahi Tefahot Bank Ltd · TASE:MZTF
Mizrahi Tefahot Bank — Q1 2019 Earnings Presentation
26 slides from Mizrahi Tefahot Bank's earnings presentation, Mar 31, 2019
Slide 1: Financial Statements March 31, 2019
Financial Statements March 31, 2019
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 2019 quarterly reports and/ or immediate reports, as well as the periodic, quarterly and an
Slide 3: Looking ahead
Looking ahead Now that the US Department of Justice’s investigation is concluded, the Bank can focus on achieving the goals of the strategic plan and resume to act in accordance with the dividend policy as early as in respect of Q2/19 profits 3
Slide 4: The strategy is working
The strategy is working 4
Slide 5: Net profit
Net profit (NIS mil) 404 17.8% 1,647* 343 1Q2018 1Q2019 5
Slide 6: Net profit - ROE
Net profit - ROE (NIS mil) ROE target for 2021 11.3% 11.5% according to the strategic plan 10.3% 1Q2018 1Q2019 6
Slide 7: Cost/income ratio
Cost/income ratio Cost/income ratio target for 2021 according to the strategic plan 59.1% 58.1% 55% 1Q2018 1Q2019 7
Slide 8: Continuous loan growth
Continuous loan growth Credit to the public (NIS mil) 196,271 Average annual growth rate – 7% 194,381 181,118 171,341 159,204 147,569 138,565 128,651 2012 2013 2014 2015 2016 2017 2018 1Q2019 1Q/2019 8
Slide 9: Credit growth in all segments: retail and business
Credit growth in all segments: retail and business (NIS mil) 31.3.2019 31.3.2018 % of change Housing loans 127,368 120,811 5.4% Households and Private banking 21,222 20,164 5.2% Small and micro businesses 19,632 17,184 14.2% Medium businesses 6,789 5,906 15.0% Large businesses and Institutional inve
Slide 10: Significant growth in the business segments
Significant growth in the business segments (NIS mil) 31.3.2019 31.3.2018 % of change Housing loans 127,368 120,811 5.4% Households and Private banking 21,222 20,164 5.2% Small and micro businesses 19,632 17,184 Annual 14.2% growth of 47,748 42,693 Medium businesses 6,789 5,906 15.0% 11.8% in Large
Slide 11: Mortgage – continuous growth of balance and revenues
Mortgage – continuous growth of balance and revenues * 400.2 127.5 349 350.2 122.5 310 122 300.2 117.5 262 116 250.2 215 112.5 111 200.2 107.5 150.2 102 102.5 100.2 97.5 50.2 92.5 0.2 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 Total balance (average)(NIS bil) Total interest rev
Slide 12: Continuous deposit growth
Continuous deposit growth Deposits from the public (NIS mil) Average annual growth rate 7.8% 204,777 199,492 183,573 178,252 162,380 152,379 141,244 128,081 2012 2013 2014 2015 2016 2017 2018 1Q2019 1Q/2019 12
Slide 13: Financing revenues from current operations continue to grow
Financing revenues from current operations continue to grow (NIS mil) 1,349 1,324 1,253 1,221 1,141 1,124 1,095 1,067 1,047 1,018 946 990 922 898 909 854 849 1Q2015 2Q2015 3Q2015 4Q2015 1Q2016 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 3Q2017 4Q2017 1Q2018 2Q2018 3Q2018 4Q2018 1Q2019 13
Slide 14: Growth in financing revenues in all business segments
Growth in financing revenues in all business segments Financing revenues (NIS m) Q1/2019 Q1/2018 % of change Housing loans 403 357 12.9% Households and private banking 371 324 14.5% Small and micro businesses 279 232 20.3% Medium businesses 68 58 17.2% Large businesses and institutional investors 16
Slide 15: Increasing equity base
Increasing equity base (NIS mil) Average annual growth rate – 9.2% 15,121 14,681 13,685 12,714 11,847 10,797 9,681 8,730 2012 2013 2014 2015 2016 2017 2018 1Q2019 1Q/2019 15
Slide 16: Bank Yahav’s business results continue to improve
Bank Yahav’s business results continue to improve 78% 77.3% 12% 76.6% 76.2% 75.5% 10.6% 11% 76% 10.2% 10% 74% 9% 72% 7.4% 8% 7.1% 7.1% 6.2% 7% 70% 70.7% 70.5% 6% 68% 5% 66% 4% 2014 *2015 2016 2017 2018 1Q2019 1Q/2019 ROE Cost/income ratio * 2015 results exclude extraordinary profit from capital mark
Slide 17: Financial results
Financial results 17
Slide 18: Net profit and ROE
Net profit and ROE (NIS mil) 13.4% 11.3% 454 10.3% 404 343 6.1% 5.7% 207 202 Q1 Q2 Q3 Q4 Q1 2018 2019 18
Slide 19: Net profit and ROE (excluding DOJ provisions)
Net profit and ROE * * (NIS mil) 14.1%* 13.4% 11.3% 472* 454 10.7%* 10.3% * 404 343 378 Q1 Q2 Q3 Q4 Q1 2018 2019 *Excluding the provisions for the US Department of Justice's investigation, and taking into account provisions for bonuses in line with the level of profitability from current operations,
Slide 20: Condensed P&L report
Condensed P&L report Q1/2019 Q1/2018 % of change Interest revenue, net 1,231 1,081 13.9 Non interest revenues 466 463 (0.6) Total 1,697 1,544 9.9 Expenses with respect to credit losses 76 82 (7.3) Operating and other expenses 986 912 8.1 Net profit 404 343 17.8 20
Slide 21: Financing revenues
Financing revenues (NIS mil) Rate of Q1/2019 Q1/2018 change Interest revenues, net 1,231 1,081 Non-interest financing revenues 57 90 Total financing revenues 1,288 1,171 10.0 Less Linkage differentials with respect to CPI position (42) 39 Revenues from collection of interest on troubled debt 12 12 G
Slide 22: Provisions / loans to the public
Provisions / loans to the public 0.19% 0.18% 0.16% 0.15% 0.13% 31.3.2018 30.6.2018 30.9.2018 31.12.2018 31.3.2019 22
Slide 23: Operating and other expenses
Operating and other expenses Q1/2019 Q1/2018 % of change Salaries 636 569 11.8 Building and equipment maintenance and depreciation 191 189 1.1 Others 159 154 3.2 Total 986 912 8.1 23
Slide 24: Main balance sheet items development
Main balance sheet items development 31.3.2019 31.3.2018 % of change Total balance sheet 260,108 242,805 7.1 Loans to the public, net 196,271 183,628 6.9 Deposits from the public 204,777 187,066 9.5 Securities 9,130 9,057 0.8 Equity 15,121 13,890 8.9 24
Slide 25: Capital adequacy
Capital adequacy 13.64% 13.38% Total Ratio Tier 1 10.01% 10.12% 31.12.2018 31.3.2019 25
Slide 26: Thank You
Thank You