We continued to focus on growth across all types of activities and our results reflect this, both in terms of credit balances and in the volume of the customers' assets, which have grown in all segments. The growth in credit is being carried out while maintaining qualitative and professional underwriting and an appropriate level of risk. The overall value of our customers' balances has increased by more than 23% in the past year, reflecting the trust that our customers place in our stability and us.

We at the First International Bank have a strategy of providing added value to customers through our unique value propositions, our new and innovative products, as well as our professional advice across all core activities and sectors.

The State of Israel has been going through a challenging period of warfare on multiple fronts for over 10 months, which is having significant and complex economic implications.  At the First International Bank, we hold the Otzar HaChayal brand, providing banking for the security forces, offering them the best banking value proposition. We are continuing to assist those customers who have been impacted directly by the security situation, including reserve soldiers, evacuees and others. Support includes waiving charges and interest on overdrafts, deferring repayments on loans and mortgages, offering interest-free loans to reservists and career soldiers, providing assistance funding to small businesses, and more.

The First International Bank looks forward to the safe return of all the hostages, as well as the safe return home of the IDF soldiers and all the evacuees.”

 

• Second quarter of 2024 net income of  NIS 609 million and return on equity of 19.6%

• First half 2024 net income of NIS 1,178 million and return on equity of 19.2%

• Credit to the public increased 4.5% compared to end of the first quarter of 2024 and 2.4% compared to 2023-end

• First half 2024 income from credit losses of approximately NIS 73 million, compared to expenses of NIS 171 million in the first half of 2023 with approximately half of the income from collections from previously written-off customer debt

• Deposit to the public increased by 3.8% compared to the first quarter of 2024, and by 6.8% compared to the 2023-end.

• The portfolio of customers' assets increased 4.8% compared to the first quarter of 2024, and by 12.4% compared to the 2023-end, to approximately NIS 755 billion.

• Equity attributed to shareholders of the Bank increased by 11.7% to NIS 12.6 billion,  compared to the end of the first half of 2023

• Tier 1 capital ratio was 11.34% 

• The Bank's Board of Directors decided to distribute a dividend amounting to 40% of the net income for the quarter 

 

Net income for the First International Bank Group was NIS 609 million in the second quarter of 2024, an increase of 3.7 % compared to the second quarter last year and an increase/decrease of 7 % compared to the prior quarter. The return on equity was 19.6%. The net income for the first half of the year was NIS 1,178 million and the return on equity was 19.2%.

Revenues were NIS 3,220 million in the first half of the year, compared to NIS 3,435 million in the first half of last year. The financing income from operating activities amounted to NIS 2,435 million in the first half of the year, compared to NIS 2,682 million in the first half of last year, a decrease of 9.2%. The decrease was due, among other factors, by customers shifting funds into interest-bearing accounts, rather than maintaining non-interest-bearing current account balances.

Income from credit losses amounted to NIS 73 million in the first half of the year, compared with expenses of NIS 171 million in the first half of last year. Approximately NIS 40 million of the income was due to income from specific customers from the collection of debts that had been previously written off in the financial accounts, with the balance due to a decrease in the collective provision for credit losses. In the second quarter of 2024, the income from credit losses amounted to NIS 71 million compared with expenses of NIS 99 million in the prior quarter.

The high-quality credit to non-performing loans ratio (NPL) was stable and was 0.59% at the end of the second quarter. The ratio indicates the quality of the credit portfolio (the balance of the non-accrual loans or those that are in arrears of 90 days or more) as a percentage of total credit to the public. The total coverage ratio (the percentage of the total allowance for credit losses to the total amount of the credit to the public) was 1.44%, compared to 1.23% as of the end of the first half of last year.

Operating and other expenses were stable at NIS 1,463 million in the first half of the year, compared to NIS 1,464 million in the first half of last year. The efficiency ratio was 45.4%.

Credit to the public was approximately NIS 122 billion, an increase of 2.4% compared to the 2023-end and an increase of 4.5% compared to the end of the first quarter of 2024.

Deposits by the public were approximately NIS 204.1 billion, an increase of 6.8% compared to the 2023-end and an increase of 3.8% compared to the end of the first quarter of 2024.

The total customers' assets portfolio increased by 4.8% compared to the first quarter of 2024 and by 12.4% compared to the 2023-end, amounting to approximately NIS 755 billion.

Equity attributed to the Bank’s shareholders increased to approximately NIS 12.6 billion, an increase of 4.5% compared to the 2023-end and increase by 11.7% compared to the end of the first half of last year. The tier 1 capital ratio was 11.34%, which is approximately 23% above the regulatory equity requirement. The liquidity coverage ratio was high and stood at 172%.

Taking into consideration the Supervisor of the Bank's directives with regard to capital planning and profit distribution policies, the Board of Directors decided to approve the distribution of a cash dividend to the shareholders at a rate of 40% of net income. The Board of Directors will continue to discuss the implementation of the Bank's dividend distribution policy, in light of the developments and their impact on the economy and on the Bank.

 

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