Bank Leumi Le-Israel B.M. · TASE:LUMI
Bank Leumi Le-Israel B.M — Q1 2012 Earnings Presentation
21 slides from Bank Leumi Le-Israel B.M's earnings presentation, 2012
Slide 1: Leumi Group Q1 2012 Earnings Review
Leumi Group Q1 2012 Earnings Review
Slide 2: This document has been prepared by Bank Leumi le-Israel B.M. (the “Bank”) and is
This document has been prepared by Bank Leumi le-Israel B.M. (the “Bank”) and is provided to you solely for your information and is not to be copied or distributed to any other person. This document does not purport to be all-inclusive or to contain all the information that may be relevant in making
Slide 3: The Israeli economy
The Israeli economy Main Macroeconomic Variables 2011 2012* Annual Rates of Change, Real Terms 3% GDP forecast continues to outpace that of other developed GDP 4.8% 2.8% economies Gross product of the business sector 5.3% 2.8% Government deficit expected to increase in 2012 due to a shortfall Percen
Slide 4: Net Profit and RoE
Net Profit and RoE NIS millions 10.3% 2,334 10.8% 2,089 11.2% 10.1% 10.3% 618 554 564 7.5% 431 2.7% 155 2009 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 4
Slide 5: Financial Performance
Financial Performance NIS millions 31.3.2012 31.3.2011 Δ Δ% Net Interest income 1,822 1,811 11 0.6 Noninterest income 1,183 1,151 32 2.8 Total Income 3,005 2,962 43 1.5 Provisions for credit 225 (102) 327 -- losses Operating and other 1,995 2,086 (91) (4.4) expenses Pre-tax profit 785 978 (193) (19.
Slide 6: Net interest income and interest margins
Net interest income and interest margins Interest margin, accumulated for the period end NIS millions 2.76% 2.32% 1.26% 1.36% 1.45% 1.00% Q1 2011 YE 2011 Q1 2012 Interest margin excluding the effect of derivatives Interest margin including the effect of derivatives Net interest income, in NIS millio
Slide 7: Expenses for credit losses
Expenses for credit losses NIS millions Individual Expenses Group Expenses 137 207 64 241 178 161 49 24 -61 -41 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 2011 Q1 2012 In % Q1 Q2 Q3 Q4 FY Q1 Individual expenses/total credit to the public (0.11) 0.04 0.41 0.30 0.16 0.27 Group expenses/total credit to th
Slide 8: Noninterest income
Noninterest income NIS millions Noninterest income 31.03.12 31.03.11 Δ Δ% Operating Commissions 1,020 1,086 (66) (6.1) Noninterest financing income 151 54 97 + Other income 12 11 1 9.1 Total 1,183 1,151 32 2.8 Noninterest financing income 31.03 Δ Δ% 2012 2011 Income (expenses) in respect of derivati
Slide 9: Diversified commission revenues
Diversified commission revenues NIS millions 291 259 210 216 204 209 122 104 98 85 73 72 82 81 Securities Account Credit Cards Credit Handling Conversion Commissions Other Fees Transactions* Management differences from financing transactions 31.3.2011 31.3.2012 *Includes financial product distributi
Slide 10: 4.4% YoY decrease in total operating and other expenses
4.4% YoY decrease in total operating and other expenses NIS millions (4.4%) 2,086 1,995 (29.1%) Related Salary expenses 592 420 (primarily severance pay and provident funds) 0.9% Salary expenses 766 759 Maintenance of buildings & 10.1% equipment, depreciation & 735 809 other expenses 31.03.2011 31.0
Slide 11: Cost/Income Ratio
Cost/Income Ratio NIS millions 74.0% 11,286 8,347 70.4% 66.4% 2,962 3,005 2,086 1,995 Q1 2011 YE 2011 Q1 2012 Total Income Total Expenses 11
Slide 12: Long-term balance and off-balance sheet growth
Long-term balance and off-balance sheet growth NIS billions Total assets 18.9% Deposits 16.6% 365.9 359.3 279.4 277.6 311.0 321.9 328.3 244.8 250.4 249.6 302.2 238.0 2007 2008 2009 2010 2011 Q1 2012 2007 2008 2009 2010 2011 Q1 2012 Credit Off-balance sheet 15.1% 21.1% 241.3 240.5 560.4 532.5 531.4 2
Slide 13: Diversified credit portfolio
Diversified credit portfolio Composition of loan portfolio by segment NIS billions, %, 31.3.2012 49, 21% 1, 0% 78, 32% 27, 11% 9, 4% 57, 24% 20, 8% Households Mortgages 47% Small businesses Private banking Corporate banking Commercial banking 53% Financial management, capital markets & others 13
Slide 14: 79% of nostro investments are in Israel government bonds and deposits
79% of nostro investments are in Israel government bonds and deposits NIS billions, 31.3.2012 NIS 97.2 billion nostro portfolio Other 10.0 1.7 1.6 3.4 Israeli stocks 3.4 Israeli corporate and bank bonds 29.7 MBS/ABS (mostly U.S. Gov't Sponsored) Foreign sovereign bonds (mostly USA) 79% 47.4 Gov't of
Slide 15: Composition of "Other" (foreign exposure)
Composition of “Other” (foreign exposure to corporate shares, corporate bonds and bank bonds) NIS Billions, 31.3.2012 10.0 0.7 1.5 Foreign corporate funds Foreign corporate bonds Foreign bank bonds 7.8 15
Slide 16: Other Comprehensive Income
Other Comprehensive Income* 637 573 468 388 309 228 252 172 74 42 -70 -214 -218 -1,078 * Net balances in capital(net adjustments in respect of available-for-sale securities) 16
Slide 17: Exposure to certain foreign countries
Exposure to certain foreign countries NIS millions, 31.3.2012 Bank Credit to Bank Country bonds and Other Total the public deposits others Portugal - - - - - Ireland 7 2 1 - 10 Italy¹ 58 342 21 10 431 Greece 3 - - - 3 Spain² 40 414 13 5 472 Total 108 758 35 15 916 1. Most of the exposure is to bonds
Slide 18: Capital: well-positioned for the evolving regulatory environment
Capital : well-positioned for the evolving regulatory environment Capital to risk weighted assets, % 14.96 14.34 14.69 13.90 11.52 11.34 Total 8.43 8.28 Core 8.20 8.07 7.55 Tier I 7.35 Capital development NIS billions 23.6% 23.4 24.1 23.3 21.5 19.5 18.3 2007 2008 2009 2010 2011* Q1 2012 *The increas
Slide 19: Focused strategy to increase value for stakeholders
Focused strategy to increase value for stakeholders Position Leumi at the forefront of retail banking in Israel by increasing market share in growth segments and small businesses Expand the scope and range of business services to institutional customers Strengthen Leumi’s leading position in the mid
Slide 20: The Leumi Group
The Leumi Group 31.03.2012 Assets: $97b ~30% market share in Israel Market Cap: $3.8b** Credit: $65b 270 branches in Israel* ROE: 7.5% Deposits: $75b 61 offices in 17 countries* CAR: 14.69% Equity: $6.5b 13,633 employees* Core Tier 1 Ratio: 8.28% AuM: $240b Leumi has been recognized for its excellen
Slide 21: Thank You Investor Relations Contacts
Thank You Investor Relations Contacts herb.small@bankleumi.co.il +972 (0)3 514 8630 rachel.livnatseri@bankleumi.co.il +972 (0)3 514 8954 21
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