Mizrahi Tefahot Bank Ltd · TASE:MZTF
Mizrahi Tefahot Bank — FY2016 Earnings Presentation
36 slides from Mizrahi Tefahot Bank's earnings presentation, 2017
Slide 1: Financial Statements December 2016
Financial Statements December 2016 Financial Statements 31 December 2008 1
Slide 2: Disclaimer
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 2016 quarterly and annual reports and/ or immediate reports, as well as the periodic, quarte
Slide 3: The strategy: growth while maintaining operational and capital efficiency
The strategy Strategy of growth while maintaining operational and capital efficiency 3 3
Slide 4: Continuous loan growth
Continuous loan growth Credit to the public 171,341 NIS mil 159,204 147,569 138,565 128,651 2012 2013 2014 2015 2016 Average annual growth rate 7.4% 4
Slide 5: Continuous loan growth (quarterly)
Continuous loan growth Credit to the public NIS mil 171,341 168,620 165,515 162,073 159,204 157,996 152,317 150,694 1Q2015 2Q2015 3Q2015 4Q2015 1Q2016 2Q2016 3Q2016 4Q2016 5
Slide 6: Credit growth in most segments
Credit growth in most segments Loans to the public 31.12.2016 31.12.2015 % of change Housing loans 114,070 105,106 8.5% Households 19,026 16,883 12.7% and private banking Medium businesses + small and micro 19,912 18,695 6.5% businesses Large businesses 15,110 15,459 *)2.3( and institutional investo
Slide 7: Continuous growth in market share in credit to the public
Continuous growth in market share in credit to the public UMTB’s market share in credit to the public 18.2% 17.7% 17.3% 17.0% 16.0% 2012 2013 2014 2015 3Q2016 3Q2016 7
Slide 8: Continuous deposit growth
Continuous deposit growth Deposits from the public 178,252 NIS mil 162,380 152,379 141,244 128,081 2012 2013 2014 2015 2016 Average annual growth rate 8.6% 8
Slide 9: Continuous deposit growth (quarterly)
Continuous deposit growth Deposits from the public NIS mil 178,252 173,748 169,621 165,001 162,380 158,107 153,736 153,002 1Q2015 2Q2015 3Q2015 4Q2015 1Q2016 2Q2016 3Q2016 4Q2016 9
Slide 10: Continuous growth in market share of deposits from the public
Continuous growth in market share of deposits from the public UMTB’s market share in deposits from the public 15.7% 15.2% 15.1% 15.0% 13.8% 2012 2013 2014 2015 3Q2016 3Q2016 10
Slide 11: Higher growth in market share of deposits in retail and corporate
Even higher growth in market share of deposits in retail and corporate segments UMTB’s market share in deposits from the public (excluding institutional investors) 14.6% 13.8% 12.5% 11.9% 11.3% 2012 2013 2014 2015 3Q2016 3Q2016 11
Slide 12: Financing revenues from current operations continue to grow
Financing revenues from current operations continue to grow (NIS m) 1,018 990 952 909 916 898 854 849 1Q2015 2Q2015 3Q2015 4Q2015 1Q2016 2Q2016 3Q2016 4Q2016 12
Slide 13: Growth in financing revenues in all business segments
Growth in financing revenues in all business segments Financing revenues (NIS m) 2016 2015 % of change Housing loans 1,100 992 10.9% Households 1,131 997 13.4% and private banking Medium businesses + small and micro 968 895 8.2% businesses Large businesses 551 546 0.9% and institutional investors Ov
Slide 14: Mortgages - continue to lead the market
Mortgages - continue to lead the market while ensuring high quality underwriting of mortgage loans Mortgages initiations (system, NIS b) Main risk parameters in mortgages UMTB’s market share in mortgages (%) ((system 65 2016 2011 59.1 Average 47.2 52.2 52 50.4% LTV* 54.6% 36.0 35.4 38.4 Average 34.7
Slide 15: Opening more branches, hiring more employees
Opening more branches, hiring more employees Number of branches Number of employees 6,047 6,141 184 177 2015 2016 2015 2016 15
Slide 16: Tight control of expenses
Tight control of expenses Operating and other expenses Maintenance and depreciation 2.3% 0.1% 3,226 3,299 692 693 2015 2016 2015 2016 16
Slide 17: Continue to improve efficiency
Continue to improve efficiency 60.9% 59.8% 58.5% 2014 2015 2016 17
Slide 18: Achieving regulatory financial ratios thresholds
Achieving regulatory financial ratios thresholds Core tier 1 Leverage ratio LCR Regulatory requirement 18
Slide 19: Increasing equity base
Increasing equity base NIS m Average annual growth rate 9.85% 12,714 11,847 10,797 8,730 9,681 2012 2013 2014 2015 2016 Average growth of ~NIS 1 billion every year ! 19
Slide 20: Proactive management of capital and assets
Proactive management of UMTB’s capital and assets Improving risk weighted assets - selling mortgage portfolios - insuring guarantees according to the Sale Law - syndications and participations with institutional investors Creating operational flexibility in managing the physical assets of UMTB b
Slide 21: Double digit ROE despite increase in equity and low interest rate
Double digit ROE despite dramatic increase in equity and extremely low interest rate ROE(%) Equity (NIS mil) In black – Bank of Israel interest rate at the end of the period 21
Slide 22: Record high net profit
Record high net profit, considerably higher than previous years 1,266 1,134 1,083 1,092 1,060 1,029 2011 2012 2013 2014 2015 2016 22
Slide 23: Dividend distribution
Dividend distribution Dividend distribution NIS m 186 120 75 86 0 0 2011 2012 2013 2014 2015 2016 23
Slide 24: Financial results
oo MIZRAHI TEFAHOT Financial results 24
Slide 25: Net profit (NIS mil)
oo MIZRAHI TEFAHOT Net profit (nis mil) 1,134 1,266 2015 2016 25
Slide 26: Net profit (NIS mil)
(ee) MIZRAHI TEFAHOT 340 330 316 288 265 ai a2 2015 2016 26
Slide 27: Net profit - ROE
oo MIZRAHI TEFAHOT Net profit -ROE 2015 2016
Slide 28: Net profit - ROE
ee Net profit -ROE MIZRAHI TEFAHOT 10) 11.6% 12.4% 10.0% 8.6% 2016 28
Slide 29: Equity (NIS bil)
oo MIZRAHI TEFAHOT Equity (nis bil) 2015 12,714 2016
Slide 30: Total revenues (NIS mil)
es Total revenues* (nis mil) MIZRAHI TEFAHOT 5,640 5,392 4,987 2014 2015 2016 * Including interest revenues net, and non interest revenues 30
Slide 31: Financing Revenues (NIS mil)
Financing Revenues (NIS mil) 31
Slide 32: Commissions (NIS mil)
oo MIZRAHI TEFAHOT Commissions (nis mil) 2015 1,433 2016
Slide 33: Operating and other expenses (NIS mil)
Operating and other expenses (NIS mil) 33
Slide 34: Provisions / loans to the public
Provisions / loans to the public 34
Slide 35: Capital adequacy
ae Capital adequacy MIZRAHI TEFAHOT 13.29% Total Ratio 9.50% Tier | 31.12.2015 13.80% 10.10% 31.12.2016 35
Slide 36: Dividend (NIS mil)
es Dividend (nis mil) MIZRAHI TEFAHOT 2015 2016