Mizrahi Tefahot Bank Ltd · TASE:MZTF
Mizrahi Tefahot Bank — Q3 2023 Earnings Presentation
16 slides from Mizrahi Tefahot Bank's earnings presentation, November 2023
Slide 1: Financial statements September 30, 2023
Financial statements September 30, 2023 0
Slide 2: Disclaimer
Q3/23 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 reports and/ or immediate reports, as well as the periodic, quarterly
Slide 3: Macro environment
Q3/23 Macro environment Unemployment rate)1( GDP growth (2) Bank of Israel interest rate and inflation Known CPI – monthly change 1 year OTC inflation expectation 2.58% )3( (1) Broad Unemployment Rate (general definition of unemployed, unemployed that ceased working due to dismissal or closing of th
Slide 4: Overview of Mizrahi-Tefahot
Q3/23 Overview of Mizrahi-Tefahot Leading Israeli Bank NIS 438bn NIS 324bn NIS 351bn Total Assets1 Net Loans to the public1 Deposits from the public1 NIS 9.3bn NIS 11.7bn NIS 3.9bn Net Interest Revenue2 Total Revenue2 Net Profit2 NIS 35.7bn >7,500 204 Market Cap3 Employees4 Branches5 Significant Mar
Slide 5: Financial Highlights
Q3/23 Financial Highlights Total Assets (NISbn) Net Loans to the Public (NISbn) Deposits from the Public (NISbn) 438 6.4% 1.6% 2.0% 324 351 Balance Sheet 430 304 345 Growth Sep-22 Sep-23 Sep-22 Sep-23 Sep-22 Sep-23 1 Cost/Income Ratio Return on Equity 1 43.8% 45.2% 37.4% 20.6% 1 20.1% 1 20.3% Profit
Slide 6: The effect of Iron Swords war events
Q3/23 The effect of Iron Swords war events • On October 7, 2023, after the balance sheet date, 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. •
Slide 7: Payments deferments
Q3/23 Payments deferments Payment deferment due to the war (NIS in millions, as off November 24, 2023) Payment amounts Payment amounts Total credit to this No. of loans deferred deferred segment (2) to total credit Large businesses 59 20 46,149 0.04% Medium businesses 295 31 12,522 0.25% Small busin
Slide 8: Asset quality (NIS mil)
Q3/23 Asset quality (NIS mil) Segment 1-9/2023 1-9/2022 Q3/2023 Q3/2022 Provisions / loans to the public Rate of Rate of Rate of Rate of Provision Provision Provision Provision provision provision provision provision 0.86% Housing loans 235 0.15% 88 0.06% 172 0.34% 36 0.07% Business 671 0.97% 200 0.
Slide 9: Provisions
Q3/23 Provisions • The increase in provisions in the third quarter of 2023 is mostly due to adjustments made by the Bank to components of group- based provision for credit losses calculated on qualitative basis, recognized so as to reflect the increase in credit risk in the market due to the war sta
Slide 10: Profitability and efficiency
Q3/23 Profitability and efficiency Net profit (NIS mil) Return on equity Cost/income ratio 1,178 1,098 20.8% 43.3% 16.8% 36.6% Q3/2022 Q3/2023 Q3/2022 Q3/2023 Q3/2022 Q3/2023 3,385 3,863 20.6% 45.5% )1( 279 20.3% 43.8% )1( 3,106)1( 18.9% 37.4% 1-9/2022 1-9/2023 1-9/2022 1-9/2023 1-9/2022 1-9/2023 9
Slide 11: Continuous loan growth
Q3/23 Continuous loan growth (NIS bil) Credit to the public(1) 323.6 307.5 271.4 Business segment 30.9.23 30.9.22 % change in 245.5 Housing loans 203.7 192.7 5.7 194.4 204.7 220.8 181.1 Households + private 159.2 171.3 27.6 26.8 3.1 banking Total individuals 231.3 219.5 5.4 Total businesses (2) 92.3
Slide 12: Continuous deposit growth (NIS bil)
Q3/23 Continuous deposit growth (NIS bil) Deposits from the public (NIS bil) Core deposits(1) (NIS bil) 221.0 225.6 193.9 205.8 136.6 344.5 351.0 105.6 113.5 126.9 167.9 307.9 95.5 284.2 199.5 211.0 246.8 2015 2016 2017 2018 2019 2020 2021 2022 30.9.23 178.3 183.6 162.4 Deposits by segments Segment
Slide 13: Financing revenues from current operations
Q3/23 Financing revenues from current operations From Q4/2020 including Union Bank. NIS mil 1-9/2023 1-9/2022 Rate of change Interest revenues, net 9,286 7,288 Non-interest financing revenues 678 556 Total financing revenues 9,964 7,844 27.0% less: Effect of the Consumer Price Index 907 874 Revenues
Slide 14: Expenses
Q3/23 Expenses Operating and other expenses (NIS mil) Salaries (NIS mil) 4,359 4,373 2,835 2,842 1-9/2022 1-9/2023 1-9/2022 1-9/2023 1,814 1,529 1,415 1,194 1,002 902 Q3/2022 Q4/2022 Q3/2023 Q3/2022 Q4/2022 Q3/2023 13
Slide 15: Equity, capital adequacy and dividend
Q3/23 Equity, capital adequacy and dividend Equity (NIS mil) Leverage ratio 23,780 26,459 5.78% 5.42% 31.12.22 30.9.23 2022 Q3/2023 (1) (2) Capital adequacy Dividend (NIS mil) 1,024 995 Total 13.02% ratio 13.12% 737 483 489 10.12% 404 410 9.94% 120 190 165 75 122 137 2010 2011 2012 2013 2014 2015 20
Slide 16: Thank you
Thank you 15