First Int'l Bank Q2 profit up 43%

First International Bank of Israel (TASE: FTIN) today posted 43% growth in its net profit, compared with the corresponding quarter, to NIS 143 million for the second quarter of 2012. First half net profit rose 1.4% to NIS 285 million from NIS 281 million for the corresponding half.

Return on equity rose to 9.8% for the second quarter from 7.3% for the corresponding quarter, and 8.3% for 2011 as a whole. Tier-1 capital adequacy ratio is 9%.

First half net interest income and non-financing interest income rose 5.4%, compared with the corresponding half to NIS 1.18 billion. Second quarter net interest income and non-financing interest income rose 14.1%, compared with the corresponding quarter, to NIS 584 million. The expense for credit losses was NIS 21 million (0.13% of total credit) for the second quarter and NIS 52 million (0.16% of total credit) for the first half.

First half commission income fell 8.5%, compared with the corresponding half to NIS 680 million, due to a 21% drop income from commissions on securities activity, caused by fall in turnover on the TASE and lower management fees.

Credit to the public totaled NIS 66.82 billion at the end of June, 4.6% more than a year earlier. Consumer credit, including mortgages, rose by 6.9%. Deposits from the public totaled NIS 83.03 billion at the end of June, 5% more than a year earlier.

First International Bank CEO Smadar Barber-Tsadik said, �The First International Bank is continuing to display financial resilience as apparent from its highest core capital ratio in the banking system, which reached 9%, and from the lowest allowance for credit losses in the system. This financial resilience is enabling the bank to maintain sustained growth and development, concurrent with continued expansion in the credit portfolio. In addition, the group is continuing to increase its efficiency and keep a hold on expenses."

Published by Globes [online], Israel business news - www.globes-online.com - on August 29, 2012