30/ 06 /201 2 Overview
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Transcript of 30/ 06 /201 2 Overview
30/06/2012 Overview
Q2 Highlights
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Continued improvement in earnings from financing operations from core banking activity
Continued growth of the credit portfolio, mainly in consumer credit and mortgages, as well as commercial and corporate credit - leading to a decrease in concentration indices and improved distribution; FIBI’s market share (local market): 9.2%
Core capital ratio: 9%, the highest in the industry
In Q2, capital market commissions stabilized after declines due to slowing in market activity; FIBI maintained its market share throughout
Decreased expenses (operating and other) due to fiscal restraint
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Net Earnings and ROE NIS Millions
281 NIS Millions
285 NIS Millions
Note: The ROE assuming average capital industry ratio of (8.3%) in the first half of 2012 stands on 10.5%
Statements of income 1-6/2012- 1-6/2011 NIS Millions
1-6/20121-6/2011Gross change
Net interest income1,107 1,084 23
Expenses (income) for credit losses (0.16% provision rate)52052
Net interest income after expenses for credit losses1,055 1,084 (29)
Total non-interest income758 797 (39)
Of which: income (expenses) non-interest73 36 37
Commissions (decrease stems mainly from decreses in customers activity in the capital markets) 680 743 (63)
Other Income 5 18 (13)
Total operating and other expenses1,3961,434 (38)
Of which: salaries and related expenses (including losses appointed time compensation)826 847 ((21
Holding and depreciation on buildings and equipment 220 221 ((1
Amortization and impairment of intangible assets84 79 5
Other expenses266 287 (21)
Profit before tax417 447 (30)
Provision for taxes on income147 187
Bank’s share of profit of associates25 30 (5)
Net earnings285 281 4
ROE9.8%10.4%
Core (Tier 1) capital ratio (end of period)9.0%8.36%4
Statements of income 4-6/2012- 1-3/2012 NIS Millions
4-6/20121-3/2012Gross change
Net interest income57253537
Expenses (income) for credit losses (0.13% provision rate)2131(10)
Net interest income after expenses for credit losses55150447
Total non-interest income355403(48)
Commissions3423384
Of which: income (expenses) non-interest1365(52)
Of which: reconciliations to fair value of derivatives19((43(62)
Total operating and other expenses696700(4)
Of which: salaries and related expenses (including losses appointed time compensation)40841810))
Holding and depreciation on buildings and equipment 109111(2)
Amortization and impairment of intangible assets43412
Other expenses1361306
Profit before tax210207
Provision for taxes on income74731
Bank’s share of profit of associates1213(1)
Net earnings1431421
ROE9.8%9.9%
Core (Tier 1) capital ratio (end of period)9.0%8.81%
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The Ratio of Total Income to Total Risk Assets (Return of Income on Risk Assets)
1-6/20121-6/2011
Operating & Other Expenses
NIS Millions
21-
5+21-
38-
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Efficiency Ratio: Total Income to Operating Expenses
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Total Income%Total Income / Operating Expenses
1-6/2011
Operating Expenses
Ratio of Total Income to Operating Expenses
Credit to the Public NIS Millions
9
Credit to the Public by Operating Segments
30.06.1231.12.1130.06.11
Change in % Compared to
30.06.11Total Private Clients
30,19728,91228,2406.9%
Of which: Mortgage15,34514,70214,2727.5%
Commercial + Small Business
13,41213,38713,0233.0%
Corporate23,21222,67922,5912.7%Total Credit to the Public
66,82164,97863,8544.65%
Ratio of Provision for problematic Debts to Credit to the Public
Other 4 Leading Banks FIBI
10* Beginning in 2011, all collection on problematic debts is shown as Expenses for credit losses instead of earnings
from financing operations **The ratio of provision for credit losses to credit to public in the first half of 2012 is 0.16%.
New measurement according to new B.O.I problematic Debts Regulation*
Deposits from the Public
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Deposits by Segments Activity
30.06.1231.12.1130.06.11Change in % Compared to
30.06.11
Private Banking
23,74223,57121,57810.0%
Household27,13726,36524,65310.1%
Total Private Deposits
50,87949,93646,23110.1%
Commercial + Small Business
10,63711,13810,690((0.5%
Corporate21,51220,31322,164(2.9%)
Total 83,02881,38779,0855.0%
NIS Millions
Composition of Total Proprietary Trading Book
Volume30.06.12
Volume31.03.12
Composition 30.06.12
Composition 31.03.12
Government bonds & Secured by Government bonds
8,5309,26574%75%
State of Israel bonds90%92%
Commercial Banks bonds1,7091,65915%14%
Shares4655424%4%
Other 8798818%7%
Of which: Fx Corporate Bonds
145180
Of which: NIS Corporate Bonds
735701
Total11,58312,347100%100%
NIS Millions
NIS Millions
Government bonds & Secured by Government bonds
74%
Total
Spain84*
Italy78*
Portugal0
Greece0
Ireland0
NIS Millions
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PIIGS proprietary trading book exposure
*No significant change in the quarter
Deposits from the Public83.0 NIS Billion
Deposits to Credit Ratio
Liquid Assets to Deposits Ratio
Capital Adequacy Basel II
Tier 1 Capital Adequacy :Of which
Corporate and Commercial 36.315.2Consumer
15.3 Mortgage
Credit tothe Public66.8 NIS Billion
Gov. & Bank Deposits1. 5 NIS Billion
9.0%
124.3%
32.3%
39.3%Of capital available for Investments
State of Israel Bonds: 7.6 NIS Billion
Deposits-Bank of Israel:16.4 NIS Billion
Sovereigns Bonds: 0.9 NIS Billion
Deposits in Banks: 2.4 NIS Billion
Banks Bonds: 1.7 NIS Billion
NIS+foreign Corporate Bonds:0.9 NIS BillionStructure Products, Hedge Funds & Stocks:0.7 NIS Billion
Market Risks in VAR Terms: (0.03) NIS Billion
Capital Notes5.4 NIS Billion
Capital available for Investments4.1 NIS Billion
13.82%
11.07% Credit against liquid assets
FIBI Strategic Assets & Liabilities Structure NIS Millions
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14.30%14.57%
13.42%
Core Capital (Tier 1) Ratio 30.06.12- Basel II
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*
*
***
**
-1.3
-1.7 -1.71
0.97-
1.62-
0.75-
%
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-0.7
Key Concentration Indicators
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The share of credit to borrowers whose liability greater than 40 million NIS out of Total ***credit
Gini index of distribution of credit
by borrower size**
Herfindahl index (H) of sector concentration of commercial credit portfolio*
Year5 BANKING GROUPSFIBI BANK5 BANKING
GROUPSFIBI BANK
5 BANKING
GROUPSFIBI BANK
200744.541.00.8970.8970.1740.190
200843.133.70.8960.8370.1720.172
200941.430.80.8970.8540.1770.177
201041.633.30.9020.8550.1810.177
201140.629.30.9030.8460.1820.168
*The index range moves from 0 ( full distribution) to 1 (full concentration))Maximally inequality in the share of credit ( 1 to(equality **The index range moves from 0 (full
***The index range moves from 0% (no credit meets the criterion) to 100% (all of the credit is over 40 million NIS)
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RAROC Index
Bank of Israel’s RAROC index measures the risk adjusted return in the 5 leading bank’s. The index evaluates what is the excess return that shows each bank relative to riskless assets
Bank of Israel RAROC Index
Changes in Net Profit - Subsidiaries NIS Millions
H1/2012
Percent Change
Relative to H1/2011
ROECore (Tier 1)
Capital Ratio
50.221%11.1%8.76%
23.8(16.2%)11.9%15.0%
22.45.2%13.1%11.4%
20.121.8%10.7%13.71%
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