Banks present record earnings
צילום: אלי אלגרט
Banks to present record earnings
Israel’s three largest banks – Hapoalim, Leumi and Discount – will present annual financial reports for 2005 tomorrow, concluding another year or record profits; 5 largest banks expected to present profits of over NIS 7 billion altogether
Israel’s three largest banks, Hapoalim, Leumi and Discount, are expected to present record earnings for this year on Wednesday, continuing the trend of the past two years. The banks will present their annual reports for 2005, and the top five banks are expected to show revenue of NIS 7 billion between them.
Banks will present revenues in absolute terms – in the billions of shekels, but the most important parameter for measuring bank performance is capital yields – profits relative to independent capital.
Although profits are higher than previous year, Israel still have some ground to cover in international terms: Hapoalim is expected to present 19% yields and Leumi a 15% yield, compared to the 20% yield typical in western countries.
The excellent profits mainly result from economic improvement. Bank Hapoalim is expected to show profits of NIS 2.8 billion, and Leumi profits of NIS 2.3 billion.
Profits at Discount Bank are more modest - roughly NIS 500 million – after a money laundering scandal uncovered at a New York branch of the bank this year cost them USD 25 million in fines to United States authorities.
Mizrahi Bank reported profits over NIS 500 million and capital yields of 12.3 percent, and the International Bank reported profits of NIS 453 million and a 12.2 percent capital yield.
Forecasts predict that next year will show continued increases in bank profits, as the economic situation is expected to continue to improve.
