Bank Leumi Le-israel B.m. · TASE:LUMI

Bank Leumi Le-israel B.m — Q2 2018 Earnings Presentation

19 slides from Bank Leumi Le-israel B.m's earnings presentation, 2018

  1. Slide 1: Q2 2018 Results Presentation

    Q2 2018 RESULTS PRESENTATION

  2. Slide 2: Disclaimer

    The conference call does not replace the need to review the latest periodic/quarterly reports in which full information is contained, including forward looking information, as defined in the Israeli Securities Law, and set out in the aforementioned reports. DISCLAIMER This document and the informati

  3. Slide 3: Recent Major Business Achievements

    Recent Major Business Achievements • Net Profit of NIS 234M (Upon completion. Selling Leumi Card to Expected in coming quarters) Warburg Pincus • Additional upside of up to NIS 273M to sale price in coming years Closed 15% Sale of BLUSA Profit attributed to Capital Gain (Q2 2108) to Endicott and MSD

  4. Slide 4: Business and Financial Highlights

    Business and Financial Highlights • - on track • ‘Digital Mortgage’ – Innovative, new and first of its kind in Israel Digital • Continued expansion of digital use across all customer segments Streamlining • New Operations Division - Simplify and improve efficiency • Progressing at full steam, launch

  5. Slide 5: Strong Results, Income and Net Profit Increased YoY

    Strong Results, Income and Net Profit Increased YoY Return on Equity Income Up – NII Up, Fees and Commissions Up; 11.3% 11.1% Noninterest income down, mainly attributed to 9.6% 9.9% depreciation of the NIS vs. USD and GBP, and the effect of derivatives Credit Loss Expenses Down - Very low in H1 and

  6. Slide 6: Year-over-Year, Core Business Continues to Improve

    Year-over-Year, Core Business Continues to Improve EFFICIENCY CREDIT LOSS LEVERAGE ROE NIM NPL RATIO CET-1 RATIO EXPENSES RATIO H1 2018 9.9% 2.20% 61.9% 0.09% 0.86% 7.00% 0.95% NPL Ratio 11.17% H1 2017 9.6% 2.07% 62.2% 0.11% 1.24% 6.93% 11.21% 6

  7. Slide 7: Year-over-Year, Core Business Continues to Improve

    Year-over-Year, Core Business Continues to Improve LOAN LOSS ROE NIM EFFICIENCY RATIO PROVISIONS Q2 2018 11.1% 2.41% 60.1% (0.02)% Q2 2017 11.3% 2.24% 59.7% 0.06% 7

  8. Slide 8: Net Interest Income and Net Interest Margins on the Rise

    Net Interest Income and Net Interest Margins on the Rise 2.20% 2.07% 9.5% 4,420 4,038 2.24% 2.41% 11.5% 2,414 2,165 Q2 2017 Q2 2018 H1 2017 H1 2018 Net Interest Margin Net Interest Income (NIS Millions) 8

  9. Slide 9: A Snapshot of our High Quality Credit Portfolio

    A Snapshot of our High Quality Credit Portfolio Low Credit Loss Expenses NPL* 1.24% NO SINGLE 10% BORROWERS GROUP 0.86% Q2 2017 Q2 2018 Total Problem Debts* 0.08% 7,651 0.06% H1 0.09% 199 0.19% 172 6,483 2015 2017 130 2016 -14 2015 2017 March 31, 2018 June 30, 2018 -125 (0.02)% (0.05)% Q2 2017 Q2 20

  10. Slide 10: Fees and Commissions Up Year-over-Year

    Fees and Commissions Up Year-over-Year 3.1% 544 520 2,025 2,087 420 435 415 409 3.5% 349 354 332 334 1,007 1,042 Q2 Q2 H1 H1 Credit Cards Financing Transactions Account Management Securities Transactions Other Fees 2017 2018 2017 2018 H1 2017 H1 2018 (NIS Millions) 10

  11. Slide 11: First Half Expenses and Efficiency Ratio

    First Half Expenses and Efficiency Ratio Improved Efficiency Ratio Total Salary & 2,236 2,293 Related Expenses 62.2% 61.9% Maintenance & Depreciation Expenses 1,834 1,858 H1 2017 H1 2018 H1 2017 H1 2018 The change is mainly attributed to Salary and Related Expenses; linked to the high ROE in H1’18 a

  12. Slide 12: Loan Growth in Line with Strategy

    Loan Growth in Line with Strategy Total Middle-Market 13% 21% Retail 6.5% Mortgages 37.2 Middle-Market 35.0 22% Corporate Other 30% Q2 2017 Q2 2018 13% Mortgages Corporate 1.5% 7.7% 56.0 80.1 52.0 78.9 Q2 2017 Q2 2018 Q2 2017 Q2 2018 (NIS Billions) Corporate includes Corporate and Real-Estate 12

  13. Slide 13: High Quality and Diverse Deposit Base

    High Quality and Diverse Deposit Base 361.3 100% 361.3 84% 342.8 286.0 75% Q2 2017 Q2 2018 Deposits from the Public June 30, 2018 7% Retail 20% 43% Small Businesses 0% Commerical 2013 2014 2015 2016 2017 Q2 2018 Corporate & Real estate Deposits from the Public Loans/Deposits Ratio 7% Capital Markets

  14. Slide 14: Strong Capital Adequacy Ratios - Along with 40% Dividend, Buy-Back in Place

    Strong Capital Adequacy Ratios - Along with 40% Dividend, Buy-Back in Place Capital Increased, in Parallel to Return to Shareholders 6.6% 34.7 Dividends 32.5 • 40% Quarterly Payout • 4.3% Q2 2018 Annualized Dividend Yield NIS 1.3 Billion 328 342 361 292 June 30, 2017 June 30, 2018 Capital Ratios Wel

  15. Slide 15: Wrapping Up First Half of 2018

    Wrapping Up First Half of 2018 Digital transformation and offerings continue to play pivotal role Strong Return on Equity High Quality Credit Portfolio – Low LLPs Growth in Credit led by Middle Market, Real estate and Mortgages Robust Capital Adequacy - 40% dividend payout and a Buy-back Plan Lookin

  16. Slide 16: Q&A

    Q&A

  17. Slide 17: Thank You

    THANK YOU

  18. Slide 18: Appendix

    APPENDIX

  19. Slide 19: Strong Macro Profile – A Positive for Leumi

    Strong Macro Profile – A Positive for Leumi 2016 2017 E2018* E2019* Strong Economic Growth – Positive for Leumi GDP, rate of change, real terms 4.0% 3.3% 3.7% 3.4% Private Consumption 6.1% 3.3% 4.2% 4.3% Robust Demographic Fundamentals – Current account surplus, % of GDP 3.8% 3.0% 2.8% 2.2% Another

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