Mizrahi Tefahot Bank, the third largest bank in Israel, posted a net profit of NIS 1.45 billion for the second quarter, 3.4% more than in the corresponding quarter of 2023. Mizrahi Tefahot is the second bank to report an increase in profit year-on-year, after Bank Hapoalim. Discount Bank and Bank Leumi both reported declines.
Mizrahi Tefahot’s annualized return on equity for the second quarter of 19.9% is the highest of all the banks, and compares with 16.4% for Bank Hapoalim, 15.9% for Bank Leumi, and 14.1% for Discount Bank. It is however lower than Mizrahi Tefahot‘s own annualized return on equity for the corresponding quarter of 2023 of 22%.
Mizrahi Tefahot’s credit to the public grew 6.6% year-on-year to NIS 338 billion at the end of the second quarter. Deposits from the public grew by 8.2%, to NIS 374 billion.
Mizrahi-Tefahot branch in Jerusalem on February 22, 2018. (credit: DARIO SANCHEZ/FLASH90)
Credit losses
The bank made a NIS 109 million provision for credit losses in the second quarter, down from NIS 247 million in the second quarter last year.
Mizrahi Tefahot will distribute a cash dividend of NIS 580.8 million for the second quarter, representing 40% of its net profit, a similar proportion to the distributions by Hapoalim and Leumi (which both partly consisted of share buybacks). Discount Bank will distribute 30% of its profit.
