Mizrahi Tefahot Bank Ltd · TASE:MZTF
Mizrahi Tefahot Bank — FY2023 Earnings Presentation
15 slides from Mizrahi Tefahot Bank's earnings presentation, March 2024
Slide 1: Financial statements December 31, 2023
Financial statements December 31, 2023 0
Slide 2: Disclaimer
Q4/23 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 2023 quarterly and annual reports and/ or immediate reports, as well as the periodic,
Slide 3: Macro environment
Q4/23 Macro environment Unemployment rate)1( GDP growth (2) 6.0% Bank of Israel interest rate and inflation Known CPI – monthly change 5.0% 4.50% 4.0% 1 year OTC inflation expectation 2.61% )4( 3.0% 2.0% 1.0% 0.0% 0.0% -1.0% Oct-17 Oct-18 Oct-19 Oct-20 Oct-21 Oct-22 Oct-23 Feb-18 Feb-19 Feb-20 Feb-2
Slide 4: Overview of Mizrahi-Tefahot
Q4/23 Overview of Mizrahi-Tefahot Leading Israeli Bank NIS 448bn NIS 325bn NIS 359bn Total Assets1 Net Loans to the public1 Deposits from the public1 NIS 12.0bn NIS 14.8bn NIS 4.9bn Net Interest Revenue2 Total Revenue2 Net Profit2 NIS 36.1bn >7,100 206 Market Cap3 Employees1 Branches1 Significant Ma
Slide 5: Financial Highlights
Q4/23 Financial Highlights Total Assets (NISbn) Net Loans to the Public (NISbn) Deposits from the Public (NISbn) 5.8% 325 4.1% 4.6% 448 359 Balance Sheet 428 307 345 Growth Dec-22 Dec-23 Dec-22 Dec-23 Dec-22 Dec-23 Cost/Income Ratio Return on Equity 1 45.2% 46.4% 37.7% 20.1% 19.0%1 19.1% Profitabili
Slide 6: The effect of Iron Swords war events
Q4/23 The effect of Iron Swords war events • On October 7, 2023, the Iron Swords war was declared following a sudden murderous rampage into settlements close to the Gaza Strip border. This was concurrently with the start of military escalation on the Northern border. • The Bank is prepared to contin
Slide 7: Loan balance with changes to terms and conditions of debt due to the war
Q4/23 Loan balance with changes to terms and conditions of debt due to the war (NIS mil) Loan balance with Loan balance with Loan balance with Loan balance with changes to terms and changes to terms and changes to terms and changes to terms and Total credit to conditions of debt as of conditions of
Slide 8: Asset quality (NIS mil)
Q4/23 Asset quality (NIS mil) Segment 1-12/2023 1-12/2022 Q4/2023 Q4/2022 Provisions / loans to the public Rate of Rate of Rate of Rate of Provision Provision Provision Provision provision provision provision provision Housing loans 0.45% 247 0.12% 99 0.05% 12 0.02% 11 0.02% Business 892 0.96% 336 0
Slide 9: Profitability and efficiency
Q4/23 Profitability and efficiency Net profit (NIS mil) Return on equity Cost/income ratio 20.1% 46.4% )1( 4,910 4,472 19.0% )1( 19.1% 45.2% 279 37.7% )1( )1( 4,193 4,472 2022 2023 2022 2023 2022 2023 8 (1) Excluding effect of capital gain, net from sale of assets.
Slide 10: Continuous loan growth
Q4/23 Continuous loan growth (NIS bil) Credit to the public(1) 325.3 307.5 271.4 Business segment 31.12.23 31.12.22 % change in 245.5 Housing loans 205.4 195.8 4.9 194.4 204.7 220.8 181.1 Households + private 159.2 171.3 26.9 27.2 )1.3( banking Total individuals 232.3 223.0 4.2 Total businesses (2)
Slide 11: Continuous deposit growth
Q4/23 Continuous deposit growth (NIS bil) Deposits from the public (NIS bil) Core deposits(1) (NIS bil) 221.0 231.8 193.9 205.8 358.6 136.6 344.5 105.6 113.5 126.9 167.9 307.9 95.5 284.2 199.5 211.0 246.8 2015 2016 2017 2018 2019 2020 2021 2022 2023 178.3 183.6 162.4 Deposits by segments Segment 126
Slide 12: Financing revenues from current operations
Q4/23 Financing revenues from current operations From Q4/2020 including Union Bank. NIS mil 2023 2022 Rate of change Interest revenues, net 11,975 10,240 Non-interest financing revenues 511 754 Total financing revenues 12,486 10,994 13.6% less: Effect of the Consumer Price Index 941 1,144 Revenues f
Slide 13: Expenses
Q4/23 Expenses Operating and other expenses (NIS mil) Salaries (NIS mil) 6,173 5,569 4,029 3,544 2022 2023 2022 2023 1,814 1,415 1,194 1,196 902 702 Q4/2022 Q3/2023 Q4/2023 Q4/2022 Q3/2023 Q4/2023 Operating and other expenses decreased by 9.8%, primarily due to completion of the Union Bank merger in
Slide 14: Equity, capital adequacy and dividend
Q4/23 Equity, capital adequacy and dividend Equity (NIS mil) Leverage ratio 23,780 27,461 5.83% 5.42% 31.12.22 31.12.23 2022 2023 (1)(2) Dividend (NIS mil) 1024 Capital adequacy 995 Total 737 ratio 13.12% 13.36% 483 489 404 410 9.94% 10.32% 190 209 120 122 137 165 75 2010 2011 2012 2013 2014 2015 20
Slide 15: Thank you
Thank you 14