Mizrahi Tefahot Bank's (TASE:MZTF) first quarter results published today show that improved credit results in the mortgages segment increased the bank's net profit from NIS 248 million in the first quarter of 2015 to NIS 288 million in the first quarter of this year, reflecting a 10% return on equity.
Financing revenue from current activity totaled NIS 922 million, up 9%, compared with NIS 846 million in the corresponding quarter last year. Mizrahi Tefahot announced that it would distribute a NIS 43 million dividend.
The main improvement in the bank's results was growth in credit business, especially in the mortgages segment. Total credit to the public amounted to NIS 162.1 million in the first quarter, 7.6% more than in the corresponding quarter last year. Non-housing credit grew 9.2% in the first quarter, compared with the first quarter of 2015, while housing credit rose 10.8%, reflecting increased activity in the real estate market. Credit for small businesses climbed 6.2%, compared with the first quarter of 2015.
"The financial results were outstanding, in view the business environment in which the bank operates: negative inflation, a near-zero Bank of Israel interest rate, and continued burdensome regulation," Mizrahi Tefahot CEO Eldad Fresher said.
Published by Globes [online], Israel business news - www.globes-online.com - on May 18, 2016
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