FIBI FIRST INTERNATIONAL BANK OF ISRAEL O verview 31.12.13.
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Transcript of FIBI FIRST INTERNATIONAL BANK OF ISRAEL O verview 31.12.13.
FIBI
FIRST INTERNATIONAL BANK OF ISRAEL
Overview 31.12.13
FIBI
FIRST INTERNATIONAL BANK OF ISRAEL
2
Net Profit and ROE NIS Millions
* Assuming core capital ratio of (9.33%), (the Israeli banking industry average core capital ratio as of 31.12.13), the ROE is 9.18% in FY2013 and 9.42% in Q4 2013.** The Net profits include amortization of 51 NIS Millions, inflicting a 0.8% reduction in the year’s ROE.
Average capital
Core capital adequacy
ratio
6,056
9.65%
6,649
10.04%
6,418 6.0%+ 9.8%+
ROE
141 NIS Millions
6,806
10.04%9.65%
**
FIBI
FIRST INTERNATIONAL BANK OF ISRAEL
3
Statements of income 2013-2012NIS Millions
20132012Gross change
Change in %
Interest income, net2,1872,250(63)(2.8%)Expenses from credit losses (0.14% provision rate) (*)97134(37)(27.6%)
Net interest income after expenses from credit losses2,0902,116(26)(1.2%)
Total non-interest income1,6821,5471358.7%
Of which: non-interest financing 2001505033.3%
Commissions1,4181,362564.1%
Other Income 64352982.9%
Total income (after expenses from credit losses)3,7723,6631093.0%
Total operating and other expenses2,8252,791341.2%
Profit before taxes947872758.6%Provision for taxes on profit3863246219.1%The bank’s share in profit of equity-basis investees, after taxes
3051(21)(41.2%)
Net profit570577(7)(1.2%)ROE8.6%9.5% Core capital ratio (end of period)10.04%9.65%
Bank of Israel average interest rate 1.39%2.35%(0.96%)
* Excluding a one time regulatory provision for mortgages - the provision rate is 0.11%
(13)
FIBI
FIRST INTERNATIONAL BANK OF ISRAEL
4
Excluding fees from capital markets activity we maintain a 11 NIS Millions growth
An increase in customers activity resulted in a 4.1% increase in Operating commissions income (NIS Millions)
201356
4.1%
An increase of 8.6% in capital markets fees (linked to an increase in customers activity)
45
13-
24
2012
FIBI
FIRST INTERNATIONAL BANK OF ISRAEL
5
Total Income to Total Weighted Risk Assets Ratio
FIBI
FIRST INTERNATIONAL BANK OF ISRAEL
6
An increase of 1.2% in Operating & Other Expenses(NIS Millions)
1-12/20131-12/2012
1.2%
54
26-
*
*Including amortization of 51 NIS Millions
6
The operating expenses increase resulted mainly by the VAT increase on salaries and other expenses The operating expenses increase resulted mainly by the VAT increase on salaries and other expenses
3.3%
1.0% )4.7%(
FIBI
FIRST INTERNATIONAL BANK OF ISRAEL
Improved Operational Efficiency Ratio (Consolidated) Total Operating Expenses to Total Income
7
76.2%76.2%
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)
%%
FIBI
FIRST INTERNATIONAL BANK OF ISRAEL
Capital Capital AdequacyAdequacy
Basel IIBasel II
Core Capital Core Capital AdequacyAdequacy
Basel IIBasel II
Estimate Core Estimate Core Capital Capital
AdequacyAdequacy Basel IIIBasel III
Deposits to Deposits to Credit RatioCredit Ratio
Liquid Assets Liquid Assets to Deposits to Deposits
RatioRatio
14.94% 14.96%
9.65% 10.04%
10.11%
124.3% 129.7%
35.4% 38.4%
31.12.1231.12.12 31.12.1331.12.13
Capital Notes 5.7
Capital Available for Investment 5.0
Public Deposits
89.1
Gov. & Bank Bonds2.0
Credit to the Public68.7
Sovereigns Bonds 1.2
State of Israel Bonds 6.9
Bank of Israel Deposits 23.1
Deposits in Banks 3.0
Banks Bonds 1.5
NIS, Corporate Bonds 0.8
Structures, Hedge funds &Stocks 0.6
Market risk in VAR(0.04)
* illustration – not to scale8
FIBI Strategic Assets & Liabilities compositeFIBI Strategic Assets & Liabilities composite** 31.12.13 31.12.13 (NIS Billion(NIS Billions)s)
FIBI Strategic Assets & Liabilities Structure NIS Billions
FIBI
FIRST INTERNATIONAL BANK OF ISRAEL
9
5.1%
4.1%
An increase of 5% in balance sheet NIS Billions
FIBI
FIRST INTERNATIONAL BANK OF ISRAEL
10
5%
13%
Shareholders` equity to total balance ratio
6.2% 6.2%
5.7%
The presented growth in equity is after dividend distribution of 200 Nis Millions in june 2013. Additional dividend of 100 Nis Millions was distributed in Q1/13.
Continued Growth in EquityShareholders` equity to total balance ratio is stable despite of the substantial growth in the total balance
FIBI
FIRST INTERNATIONAL BANK OF ISRAEL
11
Statement Of Changes in EquityNIS Millions
Balance At 31/12/12 Total Shareholders Equity6,563
2013 Net Earnings for the year 570
Dividend Paid 2013(200)
Other Comprehensive loss and others(41)
Balance At 31/12/13 Total Shareholders Equity6,892
Increase in Equity5%
Increase in Equity Excluding Dividend Paid
8%
FIBI
FIRST INTERNATIONAL BANK OF ISRAEL
12
Credit to the Public by segments
31.12.2013 NIS Millions
31.12.1331.12.12
Gross Change
Compared to 2012
Gross Change in Average Balance
Compared to
2012
Change in % Average Balance
Compared to
2012
Private + Retail (Households)
16,39015,3351,0559126.1%
Mortgage 17,42716,2601,1672,06113.4%
Total private clients33,81731,5952,2222,9739.8%
Commercial * + Small Business
12,94313,274(331))290((2.2%)
Corporate 21,94623,010(1,064)(1,344)(5.9%)
Total Credit to the Public
67,70667,8798271,3392.0%
* The decrease is due to the closure proceedings of FIBI London.
– ()31.12.12
)23%()19%(
)34%( )24%(
FIBI
FIRST INTERNATIONAL BANK OF ISRAEL
13
Provisions for Credit losses 2007-2013
*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 bank’s ratio is about 0.08% and the group’s ratio is 0.11% in 2013.** In Q4 Expenses for Credit Losses to Credit to the Public Ratio is 0.19%
Expenses for Credit Losses to Credit to the Public Ratio
**
FIBI
FIRST INTERNATIONAL BANK OF ISRAEL
14
An increase of Total Client Assets NIS Millions
31.12.1331.12.12
Gross Change
Compared to 31.12.12
Change in % Compared to
31.12.12
Total Deposits89,12284,3654,7575.6%
Securities clients portfolio
225,098192,67832,42016.8%
Total Client Assets314,220277,04337,17713.4%
– ()31.12.12
)13%(
)23%()32%(
)30%(
Breakdown of deposits portfolio
FIBI
FIRST INTERNATIONAL BANK OF ISRAEL
13.42%
*
14.30%14.57%
13.42%
*
*
*
**
* **-1.3* **-1.3-0.67 -0.63 0.57-
Minimal Regulatory Requirement For
HAPOALIM&LEUMI
Minimal
Regulatory
requirement
Ga
p
The highest Core Capital Ratio compare to other 4 leading banks
15
10.11%8.73%8.80%9.20%9.15%
Ba
se
l II**B
as
el III
Basel II
Basel lII
%%%
FIBI
FIRST INTERNATIONAL BANK OF ISRAEL
16*In annual terms . Financial ratios are as of 12.2013.** In Q1/14 additional dividend of 100 Nis Millions was distributed, hence dividend yield as of 30/6/13 is 5.3%. 16
Core capital ratio and principal financial ratios 31.12.2013
FIBI is demonstrating relative strength in main financial ratios
Shareholders` equity to total balance ratio
Ratio of core capital to risk
assets
Deposits from the public to credit to the
public
Provision for credit
losses, to impaired
credit (excluding mortgage)
Expenses for credit losses to credit to the public*
Dividend yield
2013
6.20%10.04%129.7%73.9%0.14%3.53%**
7.64%9.37%109.9%48.7%0.34%1.17%
7.06%9.43%118.7%59.3%0.11%-
6.10%9.30%128.5%56.8%0.50%-
5.49%9.01%101.9%59.7%0.21%0.87%
Other 4 leading Banks Average6.84%9.33%114.2%57.0%0.27%
FIBI
FIRST INTERNATIONAL BANK OF ISRAEL
17
Subsidiaries net profit
Specialization
Net profit 2013
Nis Millions
ROECore
Capital Ratio
Retail customers
Defense forces personnel
Commercial/ Corporate Factoring
103.19.65%9.6%
Capital Markets, Trust & Custody services
Private& affluent banking42.09.5%15.5%
Retail customers
Teachers sector
Israeli-Arab segment
42.19.6%15.1%
Ultra orthodox segment38.511.1%12.4%
FIBI
FIRST INTERNATIONAL BANK OF ISRAEL
18
2013 Highlights
Net profit of 570 NIS Million in 2013 similarly to 2012, despite of substantially decrease in interest rate and regulatory reforms inflicting reductions in commissions
The Profit before taxes increased by 8.6%.
Stable net Stable net profitprofit
The Highest The Highest dividend yield dividend yield in the Israeli in the Israeli
banking banking system system
The highest The highest Core capital Core capital
ratioratio
In 2013 the bank distributed a dividend of 200 NIS Million, additional dividend of 100 Nis Millions was distributed in Q1/2013.
The highest Core capital ratio in the Israeli banking system (also according to Basel III regulation ) – 10.04%.
FIBI
FIRST INTERNATIONAL BANK OF ISRAEL
19
2013 Highlights
Total income increased by 3% while Operating & Other Expenses increased by only 1.2% (despite of an increase of salaries).
Most of the increase in the operating expenses is related to the VAT increase
Improve in Improve in Operational Operational Efficiency Efficiency
Ratio Ratio
Maintaining Maintaining quality and quality and
spreading of spreading of credit portfoliocredit portfolio
Continued Continued growth in growth in retail core retail core
activityactivity
Decrease in credit losses Provisions - 0.14% compared to 0.2% in 2012.
A yearly increase of 5% in total balance over the last two years 2.0% increase in the average credit balance, and 9.8% in private clients
credit balance Total client assets (deposits & securities) increased by about 23 Nis Billion
(13.4%), including an increase of 8.6% in capital markets fees An increase of 4.1% in commissions due to growth in customers activity
particularly in capital markets
FIBI
FIRST INTERNATIONAL BANK OF ISRAEL FIBI’s Main Strategic Objectives for the next years
Continued development of online and mobile banking
Maintain market position in private banking & investment consultancy
Customer base growth via subsidiaries and organic growth
Retail CustomersRetail Customers
Continued efforts to Improve income per employee and per account
Maximizing group’s synergies and economies of scale
Continued on going process to utilize the groups real estate including reduction of HQ areas & effective planning of branches format
Operational improvementOperational improvement
Maintaining quality and diversified credit portfolio
Increasing the Bank`s market share in the commercial sector
Commercial & Corporate Commercial & Corporate BankingBanking
Maintain market leader position and professional reputation in capital and money markets
Capital and money market Capital and money market ServicesServices
2014-2014-20162016
StrategyStrategy
20