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FIBI FIRST INTERNATIONAL BANK OF ISRAEL O verview 30.09.13.

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Presentation on theme: "FIBI FIRST INTERNATIONAL BANK OF ISRAEL O verview 30.09.13."— Presentation transcript:

1 FIBI FIRST INTERNATIONAL BANK OF ISRAEL O verview

2 FIBI FIRST INTERNATIONAL BANK OF ISRAEL 2 Net Earnings and ROE NIS Millions * Assuming core capital ratio of (9.30%), (the Israeli banking industry average core capital ratio in 1-9/2013) the ROE is 9.4% in 1-9/2013 and 9.7% in Q Average capital Core capital adequacy ratio 5, % 6, % 6, %+ 10.5%+ ROE 144 NIS Millions 6, % 9.82%9.33% 6,651

3 FIBI FIRST INTERNATIONAL BANK OF ISRAEL 3 Statements of income 1-9/ /2012 NIS Millions Change in % Gross change 1-9/ /2013 (2.4%)(40)1,6931,653Interest income, net (23.5%)(20)8565Expenses from credit losses (0.13% provision rate) (*) (1.2%)(20)1,6081,588Net interest income after expenses from credit losses 7.2%831,1511,234Total non-interest income 22.8% Of which: non-interest financing income 3.4%351,0151,050Commissions income 100.0%22 44 Other Income (divestment of buildings + pay back of insurance) 1.3%282,0782,106Total operating and other expenses 5.1% Profit before taxes 18.0% Provision for taxes on profit (23.3%)(7)3023The bank’s share in profit of equity-basis investees, after taxes (3.6%)(16)445429Net profit 10.0%8.7%ROE 9.33%10.04%Core capital ratio (end of period) (0.92%) 2.44%1.52%Bank of Israel average interest rate * Excluding provision for mortgages the provision rate is 0.08%

4 FIBI FIRST INTERNATIONAL BANK OF ISRAEL 4 Income from Financing Activities (before Tax) 1-9/ /2012 NIS Millions Change (%) Gross change 1-9/ /2013 (394)3,0062,612Interest income 354(1,313)(959)Interest expense (2.4%)(40)1,6931,653Net interest income 22.8% financing income Non-interest (0.8%)(14)1,8071,793Total income from interest and non-interest 19(13)6Of which: Hedging of tax provision (17.1%)(6) Fair Value of derivatives (1.3%)(23)1,7941,771 Total profit from actions of financing (interest and non-interest) 9.4% Income from divestment of bonds and shares 0.8% Divestment of bonds and income from trading portfolio (15.7%)(11)7059Income from divestment of shares 26(29)(3)Provisions for writedown of bonds and shares (2.4%)(39)1,6231,584 Other financial income of financial intermediation and unoccupied capital (0.92%)2.44%1.52%Bank of Israel average interest rate

5 FIBI FIRST INTERNATIONAL BANK OF ISRAEL 5 Total Income to Total Weighted Risk Assets Ratio

6 FIBI FIRST INTERNATIONAL BANK OF ISRAEL 6 Operating & Other Expenses NIS Millions 1-9/ / * * Including amortization of 39 NIS Millions

7 FIBI FIRST INTERNATIONAL BANK OF ISRAEL Improved Operational Efficiency Ratio (Consolidated) Total Operating Expenses to Total Income % Total Income Total Operating Expenses % % Total Operating Expenses / Total Income (Before Expenses from credit losses) Total Operating Expenses / Total Income (After Expenses from credit losses) % %

8 FIBI FIRST INTERNATIONAL BANK OF ISRAEL Capital Adequacy Basel II Basel II Core Capital Adequacy Basel II Basel II Estimate Core Capital Adequacy Basel III Deposits to Credit Ratio Liquid Assets to Deposits Ratio 14.19%15.27% 9.33%10.04% 9.88% 126.5%127.6% 34.3%37.8% Capital Notes 5.8 Capital Available for Investment 4.9 Public Deposits 85.3 Gov. & Bank Bonds 2.0 Credit to the Public 66.9 Sovereigns Bonds 1.2 State of Israel Bonds 8.6 Bank of Israel Deposits 19.5 Deposits in Banks 3.1 Banks Bonds 1.7 NIS, Corporate Bonds 0.8 Structures, Hedge funds &Stocks 0.7 Market risk in VAR(0.07) * Illustration – not to scale 8 FIBI Strategic Assets & Liabilities composite* (NIS Billions) FIBI Strategic Assets & Liabilities Structure NIS Billions

9 FIBI FIRST INTERNATIONAL BANK OF ISRAEL 9 Total Assets, Deposits & Credit to the public NIS Millions Credit to the Public Public Deposits Equity Total balance 6.3% 6.2% 5.7% Shareholders` equity to total balance ratio

10 FIBI FIRST INTERNATIONAL BANK OF ISRAEL 10 Credit to the Public by segments NIS Millions Change in % Average Balance Compared to 1-9/2012 Change in % Compared to %6.6%15,09116,056 Private + Retail (Households) 13.9%7.5%15,98917,208Mortgage 10.0%7.0%31,08033,264Total private clients (1.5%) 13,33513,128 Commercial * + Small Business (3.5%)(6.0%)21,78420,503Corporate 3.0%1.1%66,19966,895 Total Credit to the Public * Of which, 167 NIS Millions decrease, in comparison to , due to the closure of FIBI London. Total Private + Retail 50%

11 FIBI FIRST INTERNATIONAL BANK OF ISRAEL 11 Provisions for Credit losses /2013 FIBI maintained low provisions for credit losses even during the recent credit crisis *In Q1 the Bank has implemented a one time regulatory provision on mortgage portfolio in order to set the expenses for credit losses ratio to 0.35% of the mortgage credit balance (24 NIS million). Excluding this one time provision, the ratio of FIBI is about 0.05% in 1-9/2013 and the ratio of the group is 0.08%. Expenses for Credit Losses to Credit to the Public Ratio Change of measurement according to Impaired Debts Directive *

12 FIBI FIRST INTERNATIONAL BANK OF ISRAEL 12 Deposits from the Public breakdown by segments NIS Millions Change in % Average Balance Compared to Q3/2012 Change in % Compared to (0.6%)(3.3%)51,54649,802 Total Private & Retail (1.8%)0.9%10,77010,892 Commercial + Small Business 3.9%14.9%21,45824,686 Corporate 0.4%1.9%83,77485,380 Total Total Private + Retail 58% The customers` securities portfolio grew in 18 NIS Billions compared to (about 10% growth). In private and retail segment the securities portfolio grew in 6 NIS Billions (about 13% growth). 25% of the growth due to increase in the market value.

13 FIBI FIRST INTERNATIONAL BANK OF ISRAEL 13.42% * 14.30% 14.57% 13.42% * * * ** * -1.3 *** Minimal Regulatory Requirement For HAPOALIM&LEUMI FIBI is the only bank in Israel that has already met the new regulatory requirement for Core Capital ratio (in 31/12/14) according to Basel II Minimal Regulatory requirement Gap Core Capital Ratio – * Core capital in FIBI is 6.8 NIS Billions up to , increase of 7% compared with % 8.54% 8.60% 8.89% 9.03%-8.82% Basel II ** Basel III 0.70-

14 FIBI FIRST INTERNATIONAL BANK OF ISRAEL 14 Core capital ratio and principal financial ratios FIBI is demonstrating relative strength in main financial ratios Dividend yield (As ) Expenses for credit losses to credit to the public* Total operating expenses / Revenue (before credit losses expenses Deposits from the public to credit to the public Ratio of core capital to risk assets 3.52%0.13%72.9%127.6%10.04% 0.81%0.49%62.8%108.1.%9.32% -0.06%69.3%116.2%9.28% -0.52%76.4%130.6%9.30% 0.87%0.28%57.7%99.5%8.84% 0.32%67.0%112.7%9.24% Other 4 leading Banks Average

15 FIBI FIRST INTERNATIONAL BANK OF ISRAEL 15 Changes in Net Profit - Subsidiaries NIS Millions Core Capital Ratio ROE Gross change Net profit 1-9/ % 10.45% % 8.9% (7.8) % 9.2% (2.6) % 9.7% (10.3)24.7

16 FIBI FIRST INTERNATIONAL BANK OF ISRAEL /2013 Highlights  Net profit NIS Million. The Profit before taxes increased – 5.1%.  The highest Core capital ratio in the banking system – 10.04%, despite a dividend paid in June Estimated Core Capital Adequacy under Basel III – 9.88%.  ROE in 1-9/ % (9.0% in Q3). Assuming the banking industry core capital average ratio (9.30%) the ROE is 9.4% in 1-9/2013 and 9.7% in Q3.  Increase in revenue from commissions – in spite of the regulatory reforms inflicting reductions in commissions, an increase in clients' activity in capital markets resulted in 7.7% increase in capital markets commissions and a slight increase in other commissions. Moreover, the 3rd quarter, due to the timing of the Jewish holidays, included less business days, which mainly reduced capital markets activity revenues in comparison to previous years.  Provisions for credit losses in 1-9/ % (0.08%- excluding regulatory provision on mortgages).  Moderate growth in operating expenses - 1.3% - mainly explained by the increase in VAT.  Operational Efficiency Ratio Improvement (before Expenses from credit losses)- 72.9% in 1-9/2013 compared to 73.1% in 1-9/2012.


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