First International Bank Of Israel Ltd · TASE:FIBI
First International Bank Of Israel — The First International Bank of Israel — FY2022 Earnings Presentation
25 slides from First International Bank Of Israel's earnings presentation, March 2023
Slide 1: Financial Statements as of December 31, 2022
Financial Statements as of December 31, 2022 1
Slide 2: Disclaimer
Disclaimer Without derogating from the generality of the provisions contained in the Terms of Use as published on the website of The First International Bank of Israel Ltd. (the “Bank” and/ or “FIBI”), this presentation and its contents were prepared by the Bank for its exclusive use as part of the
Slide 3: Net Profit and ROE growth (NIS millions)
Net Profit and ROE growth (NIS millions) 16.6% ROE *14.7% 1,667 1,405 Net 10.5% profit *8.6% 9.1% 865 6.5% 678 750 446 2015 2017 2019 2020 2021 2022 Tier 1 capital ratio 9.81% 10.38% 10.81% 11.18% 11.46% 10.42% Total capital ratio 13.26% 13.94% 13.70% 14.46% 13.59% 13.75% BOI interest (average) 0.13
Slide 4: Business Focus and Strategy
Business Focus and Strategy Strategy Strengths The Bank’s board of directors has approved the corporate strategy Specialization in wealth management for 2023-2025, which is designed to propel the Bank forward in the Leadership in capital market services emerging competitive environment No. 1 in trad
Slide 5: Growth
Growth Total income (before provision for credit losses) (NIS millions) 31.3% 5,414 4,550 4,122 4,160 2019 2020 2021 2022 Deposits (NIS billions)- end of period Total credit to public (NIS billions)-end of period 168.3 117.2 153.4 141.7 102.2 120.1 92.2 88.8 31.12.19 31.12.20 31.12.21 31.12.22 31.12
Slide 6: Efficiency
Efficiency Efficiency ratio Improvement Headcount (average) 77.6% 5,035 69.5% 4,429 64.4% 4,086 61.8% 3,895 3,715 3,676 58.3% 50.9% 2015 2017 2019 2020 2021 2022 2015 2017 2019 2020 2021 2022 6
Slide 7: Principal Information 2022
Principal Information 2022 Profitability and Growth . ROE Net income growth Financing earnings from Revenue growth current activity growth 16.6% 14.7% 1,667 19% 4,016 41% 5,414 19% 2022 2021 2022 change 2022 change 2022 change Interest income growth Commission income Credit growth Deposit growth gro
Slide 8: Net Financing Earnings
Net Financing Earnings (NIS millions) Financing earnings from current activities (excluding fair value of derivatives and investment income) 4,016 1,266 2,844 714 Q4.21 Q4.22 2021 2022 0.10% 2.89% 0.10% 1.25% Bank of Israel interest rate (avg’) ** Impact of CPI on revenue growth – NIS 36 million. Ex
Slide 9: Main Commissions
Main Commissions (NIS millions) 1,489 1,444 2022 2021 2021 2022 (2%) (16) 760 744 1% 19% 1 206 214 168 195 16 119 128 82 98 109 110 Transactions Credit cards Conversion Commissions on Other commissions Account in securities management differentials financing activities 9
Slide 10: Total Operating Expenses
Total Operating Expenses (NIS millions) Total Operating Expenses 2,755 2,652 2022 2021 2021 2022 1,680 1,601 476 491 340 332 105 113 130 139 Salaries and related expenses Maintenance and depreciation Amortization of intangible assets Computer expenses Other expenses (excluding of premises and equipm
Slide 11: Principal Information Q4.22
Principal Information Q4.22 Profitability . ROE Net income growth Revenue growth Financing earnings from current activity growth 20.7% 18.5% 13.3% 536 15% 60% 1,607 12% 36% 1,266 18% 77% Q4.22 Q3.22 Q4.21 Q4.22 Compared Compared Q4.22 Compared Compared Q4.22 Compared Compared to Q3.22 to Q4.21 to Q3
Slide 12: Credit Portfolio Growth
Credit Portfolio Growth End of period (NIS billions) 31.12.2022 Private Large customers businesses 20% (includes institutional) 25% 115.7 117.2 Medium businesses 7% 102.2 Housing loans Smallµ 30% businesses 31.12.21 30.09.22 31.12.22 18% Housing loans & households comprise 50% of credit portfol
Slide 13: Credit Portfolio Growth
Credit Portfolio Growth End of period (NIS billions) Housing loans Private customers 35.5 35.3 22.7 23.9 23.7 32.3 31.12.21 30.09.22 31.12.22 31.12.21 30.09.22 31.12.22 Medium businesses Small & Micro businesses Large businesses 21.0 21.7 20.5 29.4 26.8 7.9 8.2 20.1 6.1 31.12.21 30.09.22 31.12.22 31
Slide 14: Ratio of expenses (income) from credit losses to average total credit
Ratio of expenses (income) from credit losses to average total credit FIBI’s moderate credit policy resulted in lower provision rates FIBI 4 largest Israeli banks (avg) 0.76% 0.76% 0.76% 0.43% 0.42% 0.44% 0.31% 0.52% 0.27% 0.44% 0.22% 0.39% 0.16% 0.13% 0.14% 0.10% 0.11% 0.18% 0.20% 0.20% 0.14% 0.14%
Slide 15: Credit Quality and Problematic Credit Risk
Credit Quality and Problematic Credit Risk Problematic credit risk (NIS millions) and credit quality Provision for credit loss ratios indices 31.12.21 31.12.22 2021 2022 Q4.22 Problematic credit risk (nonaccrual) 551 603 Individual provision (0.04% ) (0.04% ) (0.01%) Problematic credit risk (accrual
Slide 16: Deposit Growth
Deposit Growth End of period (NIS billions) 168.3 31.12.22 Institutional entities 164.9 22% Private customers Large 47% businesses 153.4 11% Medium businesses 4% Small businesses 16% 31.12.21 30.09.22 31.12.22 * Diversified deposit portfolio- 63% private customers and small businesses 16
Slide 17: Total Private Customers AUM Growth
Total Private Customers AUM Growth Average balances (NIS billions) 140 141 135.5 Total 133 Total 64 63 Securities 60 Securities 64 Total Total deposits deposits 73 76 72 78 2021 2022 Q4.21 Q4.22 17
Slide 18: Robust Financial Strength
Robust Financial Strength Equity attributable to shareholders of the Bank and financial ratios at period end (NIS billions) 196.0 180.0 167.8 2018 2019 2020 2021 2022 134.1 141.1 Tier 1 capital ratio 10.51% 10.81% 11.18% 11.46% *10.42% 10.559 10.003 9.141 Gap from the required 8.568 8.093 regulatory
Slide 19: Net Changes in Tier 1 Capital Ratio (1-12.2022)
Net Changes in Tier 1 Capital Ratio (1-12.2022) 11.46% (1.64%) (0.03%) 10.42% 1.73% (0.98%) Other (0.28%) 0.16% Growth in risk assets Dividend Net profit 31.12.22 Net change in adjustments of Net change in available-for-sale adjustments of 31.12.21 bonds to fair value employee benefits to fair value
Slide 20: Highest Dividend Yield in the Banking System
Highest Dividend Yield in the Banking System (NIS millions) 8.093 6.82% 4.5% 4.5% 945 4.4% 1.5% 410 355 545 125 2018 2019 2020 2021 2022 On 21.3.23, the Board of Directors of the Bank passed a resolution to approve the payment of a cash dividend to shareholders at a total of NIS 268 million, constit
Slide 21: Securities Portfolio
Securities Portfolio 31.12.22 31.12.21 Book value Book value % Duration % Change % (NIS millions) (NIS millions) A . Bonds held to maturity 3,138 3.67 20% 2,488 16% 26% Of which: Israel government 2,941 3.64 18% 2,277 15% 29% (94%) B . Bonds available to for sale 12,401 2.12 77% 11,639 77% 7% Of whi
Slide 22: Innovation Value Proposition to Our Clients
Innovation Value Proposition to Our Clients Innovation in Private Banking and the Capital Market – Unique Tools - TipRanks – advanced analyses and analysts’ ratings - BridgeWize – stock analysis and intelligent decision support system (AI) (to be launched shortly) - Advise.Me – Israel’s first stock
Slide 23: Key Highlights- 2022
Key Highlights- 2022 . Low NPL (0.48% (0.48%) 23% decline in problematic credit 5 1 ROE- 16.6% Significant credit growth in 2022- 14.7% 'mprovsmsnt in sfflisnly ratio 6 2 from 58.3% to 50.9% Diversified deposit portfolio- Maintaining financial stability, 63% households, private 7 3 Tier 1 capital ra
Slide 24: Bank of Israel Service Satisfaction Survey – Private Clients
The Bank of Israel checked and found: Bank of Israel Service Satisfaction Survey – Private Clients The First International Bank is Number 1 in customer satisfaction and the leader in five Number 1 in satisfaction with service at the branch categories Number 1 in satisfaction with the website Number
Slide 25: Thank You
Thank You 25
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