Israel Discount Bank Announces Q4 & Full Year 2009 Financial Results
By Israel Discount Bank Ltd, PRNEWednesday, March 24, 2010
TEL AVIV, Israel, March 25, 2010 - Israel Discount Bank Limited (TASE: DSCT), one of Israel's leading banks,
announces Q4 & Full Year 2009 Financial results:
FINANCIAL HIGHLIGHTS FOR 2009: - NET INCOME - NIS 923 MILLION ($244.5 MILLION), COMPARED WITH NIS 245 MILLION ($64.9 MILLION) FOR 2008, AN INCREASE OF 277% - RETURN ON EQUITY FOR 2009 - 9.8%, COMPARED WITH 2.7% FOR 2008 - NET OPERATING INCOME - NIS 943 MILLION ($249.8 MILLION), COMPARED WITH NIS 255 MILLION ($67.5 MILLION) FOR 2008, AN INCREASE OF 270%. - NET INCOME FOR 4th QUARTER NIS 154 MILLION ($40.8 MILLION), COMPARED to A LOSS OF NIS 121 MILLION ($32.1 MILLION) for THE CORRESPONDING PERIOD. - RETURN ON EQUITY FOR THE 4TH QUARTER - 6.3%, COMPARED TO A NEGATIVE RETURN OF 5.5% for the CORRESPONDING PERIOD. - CAPITAL ADEQUACY RATIO - 13.12%. tier 1 capital ratio - 8.8% - CAPITAL ADEQUACY RATIO (in BASEL II terms) - 12.06%
Net income for the Discount Bank Group for 2009 amounted to
NIS 923 million ($244.5 million), compared with NIS 245 million ($64.9
million) for 2008. Return on equity for 2009 reached 9.8%, compared with 2.7%
last year.
The main factors influencing the profits of the Group in 2009, compared with the corresponding period: - An increase of 15.3% in income from financing activities before provision for doubtful debts. - An increase of 20.1% in non-financing income that was affected by a rise of 5.2% in operating commissions, a rise of NIS 146 million ($38.8 million) in profits from investments in shares and a rise of NIS 242 million ($64.1 million) in other income mainly from profits for severance pay funds. - Operating income of affiliated companies amounted to NIS 158 million ($41.9 million), compared with a loss of NIS 70 million ($18.5 million) for 2008. Factors partially off-setting the increase in income for 2009: - An increase of 27.9% in the provision for doubtful debts. - An increase of 2.6% in non-financing expenses. - An increase in the provision for taxes on operating income amounting to NIS 338 million ($89.5 million). Main developments in the balance sheet for 2009, compared with the corresponding period: - Total assets of the Discount Group grew by 3.3%, amounting to NIS 187.8 billion ($49.8 billion), compared with NIS 181.1 billion ($48.2 billion) in 2008. - Credit granted to the public decreased by 1.7%, amounting to NIS 114.4 billion ($30.3 billion), compared with NIS 116.5 billion ($30.8 billion) in 2008. - Deposits from the public grew by 1.9%, amounting to NIS 141.8 billion ($37.6 billion), compared with NIS 139.2 billion ($36.9 billion) in 2008. - Shareholders' equity rose by 13.6%, amounting to NIS 10 billion ($2.6 billion), compared with NIS 8.8 billion ($2.3 billion) in 2008. Data concerning subsidiaries 2009 Return Capital on Adequacy Net Income Equity Ratio (millions) (%) (%) Discount Bancorp Inc. $44 6.6 14.9 Mercantile Discount Bank NIS 180 11.1 13.1 Discount Morgage Bank NIS 31 3.4 12.1 Israel Credit Cards (the Bank holds 71.83% of equity) NIS 249 26.3 22.8 2008 Return Capital on Adequacy Net Income Equity Ratio (millions) (%) (%) Discount Bancorp Inc. $35 5.5 12.1 Mercantile Discount Bank NIS 148 10.3 12.4 Discount Morgage Bank NIS 28.4 3.2 10.8 Israel Credit Cards (the Bank holds 71.83% of equity) NIS 279 44.5 21.1 CONDENSED CONSOLIDATED Balance Sheet as at December 31 REPORTED AMOUNTS 2009 2008 2009 US$ in NIS millions millions Assets Cash and deposits with banks 24,583 21,554 6,512.1 Securities 36,338 31,535 9,626.0 Securities borrowed or purchased under resale agreements 336 25 89.0 Credit granted to the public 114,426 *116,456 30,311.5 Credit granted to Governments 1,820 1,491 482.1 Investment in investee companies (consolidated - affiliated companies) 1,795 1,827 475.5 Buildings and equipment 3,178 3,039 841.8 Other assets 5,341 5,904 1,414.8 Total assets 187,817 181,831 49,752.8 Liabilities and Shareholders' Equity Deposits from the public 141,825 139,232 37,569.5 Deposits from banks 3,724 4,555 986.5 Deposits from the Government 284 206 75.2 Securities loaned or sold under buy-back arrangements 7,651 7,194 2,026.8 Subordinated capital notes 11,529 9,373 3,054.1 Other liabilities 12,512 *12,248 3,314.4 Total liabilities 177,525 172,808 47,026.5 Minority interest 298 226 78.9 Shareholders' equity 9,994 8,797 2,647.4 Total liabilities and shareholders' equity 187,817 181,831 49,752.8 * Reclassified. Note: US Dollar figures have been converted from New Israel Shekels at the representative rate of exchange on December 31, 2009: NIS 3.775=US$1.00
CONDENSED CONSOLIDATED Statement of Income For The Year Ended December 31 Reported Amounts 2009 2008 2007 US$ In NIS millions millions Financing Income Income from financing activities before provision for doubtful debts 4,757 4,127 4,225 1,260.1 Provision for doubtful debts 998 780 447 264.4 Income from financing activities after provision for doubtful debts 3,759 3,347 3,778 995.7 Operating and other Income Operating commissions 2,625 2,495 2,474 695.4 Net income on investment in shares 197 51 58 52.2 Other income 269 27 119 71.2 Total operating and other income 3,091 2,573 2,651 818.8 Operating and other Expenses Salaries and related expenses 3,175 3,106 3,030 841.0 Maintenance and depreciation of buildings and equipment 981 910 819 259.9 Other expenses 1,330 1,332 1,296 352.3 Total operating and other expenses 5,486 5,348 5,145 1,453.2 Operating income before taxes 1,364 572 1,284 361.3 Provision for taxes on operating income 507 169 566 134.3 Operating income after taxes 857 403 718 227.0 Bank's share in operating income (loss) net of tax effect of affiliated companies 158 (70) 45 41.9 Minority interest, after taxes, in the operating income of consolidated subsidiaries (72) (78) (56) (19.1) Net operating income 943 255 707 249.8 Net income (loss) from extraordinary items, net of taxes (20) (10) 558 (5.3) Net income 923 245 1,265 244.5 Earnings (losses) per share of NIS 0.1 (in NIS) Net operating income 0.96 0.26 0.72 0.254 Net income (loss) from extraordinary items, net of taxes(1) (0.02) (0.01) 0.57 0.005 Net income 0.94 0.25 1.29 0.249 Total number of shares used for the above computation (in thousands) 980,639 980,639 980,639 The notes to the financial statements are an integral part thereof. Statement of Changes in Shareholders Equity Reported Amounts Capital reserves Benefit in Total respect of share equity-based capital Share Share compensation and capital premium transactions Other reserves in NIS millions Balance at December 31, 2006 658 2,939 8 212 3,817 Changes in 2007: Net Income for the year - - - - - Benefit in respect of equity based compensation transactions - - 27 - 27 Net adjustments for the presentation of available-for-sale securities at fair value - - - - - Net adjustments for the presentation of available-for-sale securities reclassified to the income statement - - - - - Related tax effect - - - - - Financial statements translation adjustments - - - - - Balance at December 31, 2007 658 2,939 35 212 3,844 Changes in 2008: Initial application of IFRS in affiliated companies - - - - - Initial application of new accounting principles in a subsidiary abroad - - - - - Net Income for the year - - - - - Dividend - - - - - Benefit in respect of equity based compensation transactions - - 15 - 15 Net adjustments for the presentation of available-for-sale securities at fair value - - - - - Net adjustments for the presentation of available-for-sale securities reclassified to the income statement - - - - - Related tax effect - - - - - Financial statements translation adjustments - - - - - Balance at December 31, 2008 658 2,939 50 212 3,859 Changes in 2009: Net Income for the year - - - - - Benefit in respect of equity based compensation transactions - - 2 - 2 Option expiration(3) - 4 (4) - - Net adjustments for the presentation of available-for-sale securities at fair value - - - - - Net adjustments for the presentation of available-for-sale securities reclassified to the income statement - - - - - Related tax effect - - - - - Financial statements translation adjustments - - - - - Balance at December 31, 2009 658 2,943 48 212 3,861 (table continued) Other cumulative comprehensive income (loss) Adjustment for presentation Net of available gains for (losses) sale on Total securities cash shareh- at fair Translation flow Retained olders' value adjustments(1) hedging earnings(2) equity in NIS millions Balance at December 31, 2006 249 (233) (1) 4,133 7,965 Changes in 2007: Net Income for the year - - - 1,265 1,265 Benefit in respect of equity based compensation transactions - - - - 27 Net adjustments for the presentation of available-for-sale securities at fair value 8 - - - 8 Net adjustments for the presentation of available-for-sale securities reclassified to the income statement (90) - - - (90) Related tax effect 30 - - - 30 Financial statements translation adjustments - (1) - - (1) Balance at December 31, 2007 197 (234) (1) 5,398 9,204 Changes in 2008: Initial application of IFRS in affiliated companies - - - 1 1 Initial application of new accounting principles in a subsidiary abroad - - - (4) (4) Net Income for the year - - - 245 245 Dividend - - - (250) (250) Benefit in respect of equity based compensation transactions - - - - 15 Net adjustments for the presentation of available-for-sale securities at fair value (873) - - - (873) Net adjustments for the presentation of available-for-sale securities reclassified to the income statement 249 - - - 249 Related tax effect 231 - - - 231 Financial statements translation adjustments - (21) - - (21) Balance at December 31, 2008 (196) (255) (1) 5,390 8,797 Changes in 2009: Net Income for the year - - - 923 923 Benefit in respect of equity based compensation transactions - - - - 2 Option expiration(3) - - - - - Net adjustments for the presentation of available-for-sale securities at fair value 1,014 - - - 1,014 Net adjustments for the presentation of available-for-sale securities reclassified to the income statement (556) - - - (556) Related tax effect (205) - - - (205) Financial statements translation adjustments - 19 - - 19 Balance at December 31, 2009 57 (236) (1) 6,313 9,994 Footnotes: (1) Translation adjustments of foreign operations, primarily from a consolidated subsidiary Israel Discount Bank of New York in amount of NIS 231 million, which was treated until December 31, 1994, in the financial statements of the Bank as autonomous unit. Accordingly this item included the financing sources of this investment and the related tax effect until that date. (2) Including an amount of NIS 2,704 million that is not available for distribution. (3) In respect of 784,511 un-exercised option warrants. For additional details please contact: Sarit Weiss Spokesperson Tel: +972-3-5145516 Mobile: +972-52-2461151 E-mail: spokes@discountbank.net
For additional details please contact: Sarit Weiss, Spokesperson, Tel: +972-3-5145516, Mobile: +972-52-2461151, E-mail: spokes at discountbank.net
Filed under: Banking and Financial Services, Earnings, Insurance, Investors
Tags: Israel, Israel Discount Bank Ltd, March 25, Tel aviv
Tags: Israel, Israel Discount Bank Ltd, March 25, Tel aviv
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