Israel Discount Bank Limited Class A · TASE:DSCT
Israel Discount Bank Limited Class A — Q2 2013 Earnings Presentation
15 slides from Israel Discount Bank Limited Class A's earnings presentation, 2013
Slide 1: Q2 - 2013 Investor Presentation
Q2 - 2013 Investor Presentation www.discountbank.co.il/IR | TASE DSCT | BLOOMBERG DSCT.IT | REUTERS DSCT.TA
Slide 2: Key Metrics & Ratios
Key Metrics & Ratios Q2/13 Q1/13 Change Q2/12 Change Net Interest Income 1,041 1,044 -0.3% 1,153 - 9.7% Loan Loss Provisions 141 145 - 2.8% 118 + 19.5% Non-Interest Income 924 895 + 3.2% 744 + 24.2% Commissions 668 668 - 673 -0.7% Operating & Other Expenses 1,504 1,472 + 2.2% 1,453 +3.5% Net Income
Slide 3: Key Highlights of Q2/2013
Key Highlights of Q2/2013 Net Interest Income Flat, despite lower Interest Rates & Credit Levels- Support mainly from higher CPI. Interest Margins unchanged over Q1. LLP’s flat over Q1/13 (Lower than average levels). Non Interest Income boosted by capital gains on Bonds & Private Equity Investments.
Slide 4: Management Focus 2013
Management Focus 2013 Capital preservation and de-leveraging will remain a central theme Regulatory target 9% by YE 2014. Additional efficiency measures to be taken in 2013, as well as renegotiation of employee wage agreements. Continued improvement in asset quality. Long Term 5yr strategic plan to
Slide 5: Net Income & ROE (NIS m)
Net Income & ROE (NIS m) Net Income ROE 500 10.0% 9.2% 9.0% 450 7.1% 400 8.0% 6.1% 350 6.0% 300 802 250 4.0% 200 150 2.0% 263 263 100 0.0% 165 50 -2.0% 0 2012 Q2 12 Q1 13 Q2 13 Total Revenues 7,716 7,716 1,897 1,939 1,965 2012 Q2/12 Q1/13 Q2/13 5
Slide 6: Loans & Deposits (NIS m)
Loans & Deposits (NIS m) Loan / Deposit Ratio 77.0 Net Loans (Relative Market Share 14.5% as of 31.03.13) 117,611 63,758 62,251 116,155 115,121 60,393 53,853 53,904 54,728 Corporate & Commercial Retail (Households, SME, Private Banking) 31.12.12 31.03.13 30.06.13 Net Deposits (Relative Market Share
Slide 7: Net Interest Income (NIS m)
Net Interest Income (NIS m) Flat over Q1 despite lower interest rates& Credit Levels, support from higher CPI 2.32% 2.13% 2.14% 4,459 1,153 1,044 1,041 2 2 Q2 12 Q1 13 Q2 13 Net Interest Income by Business Sectors (NIS mm) Corporate & Commercial Retail (Household, SME, Private Banking) 659 580 574 3
Slide 8: Non-Interest Income (NIS m)
Non-Interest Income (NIS m) Supported by Capital Gains from Bond Sales & Equity Investments Commissions Non Interest Financing Income Other 924 895 20 37 900 3,257 744 236 800 220 34 190 700 37 Primary Commissions 352 600 H1 H1 2013 2012 500 1200 Account Maintenance 293 301 1000 Credit 400 Cards 457
Slide 9: Asset Quality (NIS m)
Asset Quality (NIS m) Ongoing Favorable Trends in Impaired Debt; Improved Coverage Ratio Loan Loss Provisions 0.84% Quarterly Provision LLP/ Total Credit 0.78% 0.61% 0.49% 0.48% 0.42% 0.40% 726 233 252 123 118 145 141 2012 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 30.06.12 31.12.12 31.03.13 30.06.13 31.12
Slide 10: Operating & Other Expenses (NIS m)
Operating & Other Expenses (NIS m) Quarterly Uptick in expenses due to Provision for Bonuses (contingent on H1 results) Total Expenses 5,826 1,453 1,472 1,504 1,600 266 289 268 1,400 1,200 310 307 303 1,000 800 600 877 876 933 400 200 0 2012 Q2 12 Q1 13 Q2 13 Salary & Related Maintenance & Depreciat
Slide 11: Capital Ratios and Risk Weighted Assets (NIS m)
Capital Ratios and Risk Weighted Assets (NIS m) 120,256 120,853 Higher CT-1 due to Stronger Earnings & Flat RWA levels (Basel II Reporting) Regulatory CT-1 Target Basel 3: 9% YE 2014 Risk Weighted Assets Capital Adequacy Ratio Core Tier-1 Credit Risk Operational Risk Market Risk 14.1 14.2 14.4 138,6
Slide 12: Group Subsidiary Companies – Net Income
Group Subsidiary Companies – Net Income IDBNY Israel Credit Cards 8.0% 7.1% 35 25.0% 90 7.0% 30 20.2% 85 80 75 6.0% 5.1% 25 20.0% 70 65 5.0% 3.8% 20 15.0% 12.9% 12.3% 60 55 4.0% 15 58 50 45 40 3.0% 10.0% 35 2.0% 14.4 10 33 34 30 25 1.0% 10.4 7.9 5 5.0% 20 15 10 5 0.0% 0 0.0% 0 Q2-12 Q1-13 Q2-13 Q2-
Slide 13: About Discount Bank
About Discount Bank Exchange: TASE Stock Symbol: DSCT Incorporated in 1935. Market Capitalization NIS 6.2 bln (as of 25.08.13) Asset Size NIS 197,207 m (as of 30.06.13) Main Shareholders Branches in Israel (Annual Report 2012) 74.84% Discount Bank : 147 Branches Public Float Mercantile D
Slide 14: Disclaimer
Disclaimer This document has been prepared by Israel Discount Bank solely for use of the company's presentation of its Second Quarter 2013 results as well as strategic updates at various investor forums. The information contained herein is partial and may include information that has not been indepe
Slide 15: Investor Information
Investor Information www. discountbank.co.il/IR Subscribe to receive email alerts. IR Contact: Barry Simon barry.simon@discountbank.co.il +972-3-5146593 5