Mizrahi Tefahot Bank Ltd · TASE:MZTF
Mizrahi Tefahot Bank — Q2 2021 Earnings Presentation
14 slides from Mizrahi Tefahot Bank's earnings presentation, August 2021
Slide 1: Financial statements
COO Financial statements | coumtTs
Slide 2: Disclaimer
Q2/21 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 2021 quarterly reports and/ or immediate reports, as well as the periodic, quarterly
Slide 3: Macro environment
Q2/21 Macro environment Unemployment rate)1()2( GDP growth)1( Bank of Israel interest rate and inflation Known CPI – monthly change -0.5% -0.2% 0.1% 1.3% 1 year OTC inflation expectation 1.74% )3( 1) 2021F-2022F according to BoI forecast from July 2021 2) From March 2020 onwards – Broad Unemployment
Slide 4: Overview of Mizrahi-Tefahot
Q2/21 Overview of Mizrahi-Tefahot Leading Israeli Bank NIS 374bn NIS 254bn NIS 294bn Total Assets1 Net Loans to the public1 Deposits from the public1 NIS 3.7bn NIS 5.1bn NIS 1.7bn Net Interest Revenue1 Total Revenue1 Net Profit1 NIS 26bn >7,500 197 Market Cap2 Employees3 Branches3,4 Significant Mark
Slide 5: H1/2021 Financial Highlights
Q2/21 H1/2021 Financial Highlights Total Assets (NISbn) Net Loans to the Public (NISbn) Deposits from the Public (NISbn) 374 294 Balance Sheet 360 4.0% 3.5% 254 284 3.6% 246 Growth Dec-20 Jun-21 Dec-20 Jun-21 Dec-20 Jun-21 Cost/Income Ratio Return on Equity 53.9% 17.7% 52.6% 52.8% 9.0% 9.5% Profitab
Slide 6: Asset quality
Q2/21 Asset quality Provisions / loans to the public Segment H1/2021 2020 Rate of Rate of 0.43% Provision Provision provision provision Housing loans )82( )0.10%( 279 0.18% Business )35( )0.27%( 635 0.99% Households )110( )0.34%( 136 0.53% Total )227( )0.18%( 1,050 0.43% 2020 H1/2021 (0.18%) 5
Slide 7: Credit deferrals
Q2/21 Credit deferrals Balance of the mortgage 72.2% portfolio, 30.06.21 27.8% 164.5 23.3 % 4.5% DidDid notnot request requestdeferral 118.7 deferral 113.9 Requested Requesteddeferral 45.8 deferral 45.8 Returned to orderly full repayment 38.4 0.1% Have not yet returned to orderly full repayment 7.4
Slide 8: Profitability and efficiency - 2Q and 1H 2021
Q2/21 Profitability and efficiency - 2Q and 1H 2021 Net profit (NIS mil) Return on equity Cost/income ratio 988 55.3% 21.3% 52.8% 676 14.9% 50.4% 360 9.0% 2Q/2020 1Q/2021 2Q/2021 2Q/2020 1Q/2021 2Q/2021 2Q/2020 1Q/2021 2Q/2021 17.7% 55.1% 1,664 10.3% 52.6% 52.8% 893 9.0% 717 1H/2020 2H/2020 1H/2021
Slide 9: Continuous loan growth, led by mortgages and business loan growth
Q2/21 Continuous loan growth, led by mortgages and business loan growth Credit to the public % change in Business segment 30.6.21 31.12.20 annual terms 254 246 Housing loans 163,542 155,422 10.7% 194 205 171 181 Households + private 25,873 25,697 1.4% 159 221 banking Total individuals 189,415 181,11
Slide 10: Continuous deposit growth, led by core deposit growth
Q2/21 Continuous deposit growth, led by core deposit growth (1) Deposits from the public Core deposits(1) 204 127 137 194 294 106 114 168 96 284 211 178 184 199 247 2015 2016 2017 2018 2019 2020 30.6.2021 162 (1) Core deposits by segments Segment 90.8 House holds and Private banking 138.7 31% 47% Sm
Slide 11: Financing revenues from current operations continue to grow despite decrease in interest rates
Q2/21 Financing revenues from current operations (1) continue to grow despite decrease in interest rates BoI rate: FED rate: 1-6/2020 0.18% 1-6/2020 0.66% 1-6/2021 0.10% 1-6/2021 0.08% H1/2021 H1/2020 Rate of change Interest revenues, net 3,726 2,670 Non-interest financing revenues 255 140 Total fin
Slide 12: Expenses
Q2/21 Expenses Operating and other expenses Salaries (NIS mil) (NIS mil) 1,341 1,333 2,674 870 843 1,713 233 231 464 126 107 233 )1( )1( )1( )1( )1( )1( 950 1,108 1,102 1,967 2,210 744 736 1,480 596 1,240 2Q/2020 1Q/2021 2Q/2021 1H/2020 1H/2021 2Q/2020 1Q/2021 2Q/2021 1H/2020 1H/2021 Most of the inc
Slide 13: Equity, capital adequacy and dividend
Q2/21 Equity, capital adequacy and dividend Equity (NIS mil) Capital adequacy 18,804 20,444 Total ratio Tier 1 13.62% 14.64% 2020 H1/2021 10.04% 10.53% Dividend (NIS mil) 737 31.12.2020 30.6.2021 404 483 BoI minimum requirement: 120 190 137 75 122 12.18% 12.13% 2010 2011 2012 2013 2014 2015 2016 201
Slide 14: Thank you
“Thankyou