Mizrahi Tefahot Bank Ltd · TASE:MZTF
Mizrahi Tefahot Bank — Q1 2020 Earnings Presentation
29 slides from Mizrahi Tefahot Bank's earnings presentation, May 2020
Slide 1: Financial statements March 31, 2020
Financial statements March 31, 2020 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 2020 quarterly reports and/ or immediate reports, as well as the periodic, quarterly and an
Slide 3: Impact of the Corona virus crisis
Impact of the Corona virus crisis Extensive Response to operational customers in preparation which light of social Leveraging enabled distancing business appropriate service limitations and opportunities to bank customers the economic situation • At all time branch network • Expansion of all digital
Slide 4: Net profit
Net profit (NIS mil) 404 357 303 Q1/2019 Q1/2020 Q1/2020 Excluding insurance proceeds 4
Slide 5: Return on equity
Return on equity ROE 2021 target according to the strategic plan 11.3% 11.5% 9.1% 7.7% Q1/2019 Q1/2020 Q1/2020 Excluding insurance proceeds 5
Slide 6: Efficiency ratio
Efficiency ratio Cost/income ratio 2021 target according to the strategic plan 58.1% 54.7% 55.0% 52.4% Q1/2019 Q1/2020 Q1/2020 Excluding insurance proceeds 6
Slide 7: Expenses
Expenses (NIS mil) Annual growth target according to the strategic plan – 6% Salaries Operating and other expenses 1.3% 3.1% 1,017 636 644 986 Q1/19 Q1/20 Q1/19 Q1/20 7
Slide 8: Continuous loan growth
Continuous loan growth (NIS mil) 210,230 204,708 194,381 181,118 171,341 159,204 147,569 138,565 2013 2014 2015 2016 2017 2018 2019 Q12020 Q1/2020 8
Slide 9: Continuous loan growth in all segments
Continuous loan growth in all segments (NIS mil) Business segment 31.03.2020 31.03.2019 % of change Housing loans 137,227 127,368 7.7% Households and Private banking 21,642 21,222 2.0% Small and micro businesses 21,175 19,632 7.9% Medium businesses 7,225 6,789 6.4% Large businesses, Institutional 22
Slide 10: Continuous loan growth focusing on business segments
Continuous loan growth focusing on business segments (NIS mil) Business segment 31.03.2020 31.03.2019 % of change Housing loans 137,227 127,368 7.7% Households and Private banking 21,642 21,222 2.0% Small and micro businesses 21,175 19,632 7.9% Annual 51,361 47,681 growth of Medium businesses 7,225
Slide 11: Government guaranteed special Corona program – Bank's share higher than its market share
Government guaranteed special Corona program – Bank’s share higher than its market share Government guaranteed Corona program (1) Marker share of the Bank 21.4% 600 20% Total volume of the 11.1% (2) program: NIS 14 bil 805 27% Bank’s share: 1,595 53% NIS 3 bil Extended In process State guaranteed Fi
Slide 12: Adjusting provisions to market conditions
Adjusting provisions to market conditions (NIS mil) Applying methodology for possible future impact of the Corona virus on economic conditions Segment Q1/2020 Q1/2019 2019 Provision Rate of Provision Rate of Provision Rate of provision provision provision Housing loans 65 0.19% 8 0.03% 44 0.03% Hous
Slide 13: Robust, resilient balance sheet, tilted towards mortgages with lower risk level
Robust, resilient balance sheet, tilted towards mortgages with lower risk level Rate of provision Provision Rate of Provision Rate of Provision Rate of Business provision provision Business provision 1.55% credit 1.52% credit 34.7% 72.2% Mortgages 65.3% Mortgages 0.19% 0.16% 27.8% UMTB 4 other major
Slide 14: Mortgages - maintaining leading position
Mortgages - maintaining leading position Continuous growth of balance and revenues Total balance (average)(NIS bil) Total interest revenue (NIS mil) 128 130 119 401 115 384 109 348 96 307 249 216 14 * Operating segments in conformity with management approach. Note 12 to quarterly reports, note 29 to
Slide 15: Continuous deposit growth
Continuous deposit growth (NIS mil) 223,189 210,984 199,492 183,573 178,252 162,380 152,379 141,244 2013 2014 2015 2016 2017 2018 2019 1Q2020 Q1/2020 15
Slide 16: Growth of core deposit
Growth of core* deposit (NIS mil) Deposits growth rate 9% 31.3.2019 31.3.2020 Rate of Segment change House holds and Private 13.2% banking 73,382 74,356 33% 36% Small and micro 21.4% businesses Share of core deposits 97,555 Share of core deposits 110,458 48% Medium 14.8% 64% businesses 67% 50% Large
Slide 17: Financing revenues from current operations continue to grow (NIS mil)
Financing revenues from current operations continue to grow (NIS mil) 1,388 1,416 1,357 1,372 1,324 1,349 1,253 1,221 1,124 1,141 1,095 1,067 990 1,018 1,047 946 904 909 922 846 851 17
Slide 18: Growth in financing revenues from current operations
Growth in financing revenues from current (NIS mil) Led by substantial increase in mortgages, small and micro businesses and medium businesses Segment 1Q/2020 1Q/2019 Rate of change Housing loans 459 403 13.9% Households and Private banking 359 357 0.6% Small and micro businesses 298 280 6.4% Medium
Slide 19: Bank Yahav business results continue to improve
Bank Yahav business results continue to improve 78% 76.6% 76.2% 77.3% 13% 75.5% 11.3% 12% 76% 11.1% 74% 10.2% 11% 10% 72% 9% 70% 7.4% 7.1% 70.7% 8% 68% 6.2% 7.1% 68.4% 7% 66% 68.0% 6% 64% 5% 62% 4% 2014 *2015 2016 2017 2018 2019 1Q2020 Q1/2020 להון ROEתשואה יעילות יחס Cost/income ratio 19 *
Slide 20: Highest ROE in the system, consistently
Highest ROE in the system, consistently (1) UMTB 4 other major banking groups (1) Excluding one offs and extra-ordinary items 20
Slide 21: Best cost/income ratio in the system, consistently
Best cost/income ratio in the system, consistently (1) 4 other major banking groups UMTB (1) Excluding one offs and extra-ordinary items 21
Slide 22: Financial Statements
Financial Statements 22 2019 יולי
Slide 23: Net profit and ROE
Net profit and ROE (NIS mil) 15.8% 576 11.3% 11.1% 11.5% 422 440 9.1% 404 357 7.7% 303 (1) Q1/2019 Q2/2019 Q3/2019 Q4/2019 Q1/2020 (1) Excluding revenues amounting NIS 82 million (net of taxes NIS 54 million) with respect to agreement with insurers 23 to conclude derivative proceedings.
Slide 24: Condensed P&L report
Condensed P&L report (NIS mil) Q1/2020 Q1/2019 % of change Interest revenue, net 1,347 1,231 9.4 Non interest revenues 593 466 27.3 Total 1,940 1,697 14.3 Expenses with respect to - credit losses 345 76 Operating and other expenses 1,017 986 3.1 Net profit 357 404 )11.6( 24
Slide 25: Financing revenues
Financing revenues (NIS mil) Rate of Q1/2020 Q1/2019 change Interest revenues, net 1,347 1,231 Non-interest financing revenues 64 57 Total financing revenues 1,411 1,288 9.5 Less: Linkage differentials with respect to CPI position )83( )42( Revenues from collection of interest on troubled debt 7 12
Slide 26: Provisions / loans to the public
Provisions / loans to the public 0.66% 0.23% 0.20% 0.15% 0.14% Q1/2019 Q2/2019 Q3/2019 Q4/2019 Q1/2020 26
Slide 27: Capital adequacy
Capital adequacy 13.88% 13.39% 13.33% Total Ratio Tier 1 10.12% 10.14% 9.89% 31.3.2019 31.12.2019 31.3.2020 BoI minimum Tier 1 9.83% 9.83% 8.82% requirement Total Ratio 13.33% 13.33% 12.32% 27
Slide 28: Total balance sheet items development
Total balance sheet items development (NIS mil) 31.3.2020 31.3.2019 % of change Total balance sheet 284,731 260,011 9.5 Loans to the public, net 210,230 196,271 7.1 Deposits from the public 223,189 204,777 9.0 Securities 8,709 9,130 )4.6( Equity 16,371 15,121 8.3 28
Slide 29: Equity
Equity (NIS mil) 15,121 16,033 16,371 31.3.2019 31.12.2019 31.3.2020 29