First International Bank of Israel Reports Financial Results for the Fourth Quarter and Full Year of 2024
PR Newswire
TEL AVIV, Israel, March 12, 2025
Reflects continued growth and strong profitability while maintaining financial stability
TEL AVIV, Israel, March 12, 2025 /PRNewswire/ -- First International Bank of Israel (TASE: FIBI) one of Israel's major banking groups, today announced its results for the fourth quarter of the year.
Financial Highlights
-- Net income of NIS 2,371 million in the year 2024; Return on equity 19%;
-- Net income of NIS 573 million in the fourth quarter of 2024; Return on
equity 17.4%
-- Net credit to the public grew by 10% in 2024 and by 3.7% in the fourth
quarter;
-- Deposits from the public grew by 12.4% in 2024 and by 0.9% in the fourth
quarter;
-- Customers' assets grew by 25% in 2024 and by 5% in the fourth quarter,
and reached NIS 839 billion;
-- Equity attributed to the Bank's shareholders amounted to NIS 13.4
billion; an increase of 11.3% compared to the end of 2023; Tier 1
shareholders' equity ratio of 11.31%;
-- The Bank's Board of Directors decided on the distribution of a dividend
amounting to NIS 228 million, representing a return of 40% of the net
income;
Financial Results of the Fourth Quarter and Full Year 2024
The First International Group's net income amounted to NIS 2,371 million in 2024, an increase of 9.2% compared with that of the previous year. The return on equity reached 19%.
In the fourth quarter of the year, the net income amounted to NIS 573 million, an increase of 14.8% over that of the previous year. The return on equity was 17.4%.
Credit to the public, net, amounted to NIS 129.4 billion, an increase of 10% in 2024 and an increase of 3.7% in the fourth quarter.
Deposits from the public amounted to NIS 214.8 billion, an increase of 12.4% in 2024 and 0.9% in the fourth quarter. The customers' assets portfolio increased by 25% in comparison with that of the previous year and by 5% in the fourth quarter of 2024, and amounted to NIS 839 billion.
Equity attributed to the Bank's shareholders increased to NIS 13.4 billion, an increase of 11.3% by comparison with the end of 2023. The tier 1 shareholders' equity ratio increased to 11.31%, 2.1 percentage points above the required regulatory amount. The liquidity coverage ratio remained high and stood at 165%.
Considering the directives of the Supervisor of Banks regarding Capital Planning and Profits Distribution Policy, the Bank's Board of Directors approved the distribution of a cash dividend to shareholders amounting to NIS 228 million, representing 40% of net income. The Board of Directors will continue to consider the implementation of the Bank's dividend distribution policy, according to which the bank will distribute up to 50% of its net profit each year, in light of ongoing developments and impacts on the economy and the Bank.
Income for credit losses amounted to NIS 16 million in 2024, compared with expenses of NIS 502 million in 2023. The expenses for credit losses were NIS 35 million in the fourth quarter of the year, of which the collective expense was NIS 41 million. The percentage of the expense to the average balance of credit to the public was 0.11%.
In terms of the qualitative credit portfolio, the non-performing loan $(NPL.SI)$ ratio (the balance of non-accrual debts or debts that are in arrears of 90 days or more, out of the balance of the credit to the public) declined, and reached 0.53% at the end of the fourth quarter, as compared to 0.6% at the end of 2023. The ratio is an indication of the quality of the credit portfolio.
Operating and other expenses amounted to NIS 2,977 million in 2024, an increase of 3.5% over 2023 and was primarily due to an improved efficiencies as well as the impact of inflation. The 2024 efficiency ratio stood at 44.1%.
Management Comment
Eli Cohen, First International Bank Israel's Chief Executive Officer, commented, "2024 presented many challenges for us, amid ongoing uncertainty. The Swords of Iron War negatively affected hundreds of thousands of Israelis, both directly and indirectly, and the Bank's staff and managers remained fully committed to providing optimal customer service throughout the period. Together with a series of benefits and reliefs for First International Bank's customers, we continued to support Israel's security forces and to society in general. This is primarily through an initiative we launched in the early days of the war, and which continues today. As part of this initiative, we stand by and supports the brave members of Kibbutz Nir Oz, who have suffered devasting losses in the attack."
"I am proud and grateful to the thousands of First International Bank's staff members, for their devotion during this period of war, for their motivation, their determination and their dedicated service they continue to provide our customers."
"Today, we published the Bank's financial results for 2024. Despite the significant challenges, the results reflect resilience and growth. This year, we have seen strong momentum in our core operations and strategic focus areas, with the credit portfolio growing by 10% and customer assets increasing by 25%. We have achieved growth through our activity with new customers and the continued expansion in our activity with existing customers, reinforcing our position as the leading bank in the capital markets sector. "
"The Bank's results are also marked through a high level of financial stability, reflected in the quality of the credit portfolio, as well as the high capital and liquidity ratios. This stability is of considerable importance in the current period of economic uncertainty."
"We are continuing to improve our value proposition to customers, by providing both a personalized service and also through our digital capabilities. The First International Bank's customers are the first who can benefit from FibiWise, an innovative system we developed, that provides customers with a comprehensive financial view of their various accounts across all banks and financial institutions. Additionally, we also recently launched a preloaded wallet called Beyond, which, for the first time in the Israeli banking system, enables its holders to benefit from significant fixed benefits on their purchases."
"I hope and pray that we will achieve calm in the security situation on the various fronts, for the safe return of the residents of the North and the South and for the return of all the hostages. I send my wishes for a speedy and full recovery to all the wounded and share my deepest condolences to the bereaved families."
CONDENSED PRINCIPAL FINANCIAL INFORMATION AND PRINCIPAL EXECUTION INDICES
--------------------------------------------------------------------------------------
Principal financial ratios 2024 2023 2022 2021 2020
------------------------------------ ------- ------- ------- ------- -----------
percent
------- -------
Execution indices
Return on equity attributed to
shareholders of the Bank 19.0 19.7 16.6 14.7 8.6
Return on average assets 1.02 1.06 0.89 0.82 0.49
Ratio of equity capital tier 1 11.31 11.35 10.42 11.46 11.18
Leverage ratio 5.18 5.26 5.19 5.34 5.29
Liquidity coverage ratio(1) 165 156 127 128 150
Net stable funding ratio(2) 140 146 133 139
Ratio of total income to average
assets 2.9 3.2 2.9 2.6 2.7
Ratio of interest income, net to
average assets 2.0 2.4 2.0 1.6 1.7
Ratio of fees to average assets 0.7 0.7 0.8 0.8 0.9
Efficiency ratio 44.1 43.5 50.9 58.3 61.8
Credit quality indices
Ratio of provision for credit losses
to credit to the public 1.25 1.36 1.02 1.05 1.38
Ratio of total provision for credit
losses (3) to credit to the public 1.38 1.50 1.12 1.13 1.48
Ratio of non-accruing debts or in
arrears of 90 days or more to credit
to the public 0.53 0.60 0.48 **0.63 0.86
Ratio of provision for credit losses
to total non-accruing credit to the
public 244.6 234.5 219.7 **244.0 221.3
Ratio of net write-offs to average
total credit to the public (0.04) 0.03 0.03 (0.01) 0.10
Ratio of expenses (income) for credit
losses to average total credit to
the public (0.01) 0.42 0.11 (0.23) 0.52
------------------------------------- ------- ------- ------- ------- -----------
Principal data from the statement of
income 2024 2023 2022 2021 2020
------------------------------------ ------- ------- ------- ------- -----------
NIS million
------------------------------------ ------- ------- ------- ------- -----------
Net profit attributed to shareholders
of the Bank 2,371 2,172 1,667 1,405 750
Interest Income, net 4,740 4,966 3,803 2,794 2,637
Expenses (income) from credit losses (16) 502 123 (216) 464
Total non-interest income 2,006 1,652 1,611 1,756 1,523
Of which: Fees 1,553 1,502 1,489 1,444 1,371
Total operating and other expenses 2,977 2,877 2,755 2,652 2,569
Of which: Salaries and related
expenses 1,739 *1,766 *1,700 *1,621 *1,552
Primary net profit per share of NIS
0.05 par value (NIS) 23.63 21.65 16.62 14.00 7.48
------------------------------------- ------- ------- ------- ------- -----------
Principal data from the balance
sheet 2024 2023 2022 2021 2020
------------------------------------ ------- ------- ------- ------- -----------
NIS million
------------------------------------ ------- ------- ------- ------- -----------
Total assets 248,563 221,593 195,955 180,470 167,778
of which: Cash and deposits with
banks 77,175 68,866 57,130 57,370 57,802
Securities 34,396 26,985 16,010 15,091 13,105
Credit to the
public, net 129,416 117,622 115,961 101,164 90,970
Total liabilities 234,479 208,947 184,920 170,033 158,243
of which: Deposits from the public 214,755 191,125 168,269 153,447 141,677
Deposits from
banks 2,508 4,314 4,821 5,144 2,992
Bonds and
subordinated
capital notes 4,479 4,767 4,749 3,356 4,394
Capital attributed to the
shareholders of the Bank 13,430 12,071 10,559 10,003 9,141
------------------------------------- ------- ------- ------- ------- -----------
Additional data 2024 2023 2022 2021 2020
------------------------------------ ------- ------- ------- ------- -----------
Share price (0.01 NIS) 17,940 14,990 13,900 12,950 8,514
Dividend per share (0.01 NIS) 986 795 942 543 125
Average number of positions (4) 3,555 3,634 3,676 3,715 3,895
------------------------------------- ------- ------- ------- ------- -----------
* Reclassified.
** Restated in respect of the new disclosure format on non-accruing debts instead
of impaired debts, since January 1, 2022. Comparative data for 2020 have not been
restated.
(1) The ratio is computed in respect of the three months ended at the end of the
reporting period.
(2) According to instructions of the Bank of Israel the Net stable funding ratio was
calculated since 2021. Therefor no comparative data is stated.
(3) Including provision in respect of off-balance sheet credit instruments.
(4) The number of positions includes conversion of overtime in terms of positions.
STATEMENT OF INCOME FOR THE YEAR ENDED DECEMBER 31
(NIS million)
------------------------------------------------------------------
Consolidated The Bank
----------------- ---------------------- ----------------------
2024 2023 2022 2024 2023 2022
----------------- ------ ------ ------ ------ ------ ------
Interest Income 11,097 9,850 5,161 10,506 9,317 4,833
Interest Expenses 6,357 4,884 1,358 6,251 4,801 1,339
------------------ ------ ------ ------ ------ ------ ------
Interest Income,
net 4,740 4,966 3,803 4,255 4,516 3,494
Expenses (income)
from credit
losses (16) 502 123 (23) 484 118
------------------ ------ ------ ------ ------ ------ ------
Net Interest
Income after
expenses from
credit losses 4,756 4,464 3,680 4,278 4,032 3,376
------------------ ------ ------ ------ ------ ------ ------
Non-Interest
Income
Non-Interest
Financing income 432 142 113 432 161 111
Fees 1,553 1,502 1,489 1,387 1,348 1,331
Other income 21 8 9 78 62 66
------------------ ------ ------ ------ ------ ------ ------
Total non-Interest
income 2,006 1,652 1,611 1,897 1,571 1,508
------------------ ------ ------ ------ ------ ------ ------
Operating and
other expenses
Salaries and
related expenses 1,739 *1,766 *1,700 1,620 *1,644 *1,582
Maintenance and
depreciation of
premises
and equipment 359 *321 *312 334 *297 *288
Amortizations and
impairment of
intangible
assets 134 122 113 133 120 111
Other expenses 745 668 630 717 642 604
------------------ ------ ------ ------ ------ ------ ------
Total operating
and other
expenses 2,977 2,877 2,755 2,804 2,703 2,585
------------------ ------ ------ ------ ------ ------ ------
Profit before
taxes 3,785 3,239 2,536 3,371 2,900 2,299
Provision for
taxes on profit 1,383 1,090 884 1,228 973 801
------------------ ------ ------ ------ ------ ------ ------
Profit after taxes 2,402 2,149 1,652 2,143 1,927 1,498
The bank's share
in profit of
equity-basis
investee, after
taxes 74 113 74 228 245 169
------------------ ------ ------ ------ ------ ------ ------
Net profit:
Before attribution
to
non-controlling
interests 2,476 2,262 1,726 2,371 2,172 1,667
Attributed to
non-controlling
interests (105) (90) (59) - - -
Attributed to
shareholders of
the Bank 2,371 2,172 1,667 2,371 2,172 1,667
------------------ ------ ------ ------ ------ ------ ------
Consolidated and
The Bank 2024 2023 2022
----------------- ------ -------------- -------------- ------
Primary profit
per share
attributed to the
shareholders of
the Bank NIS
----------------- ------ ------ ------ ------ ------ ------
Net profit per
share of NIS 0.05
par value 23.63 21.65 16.62
------------------ ------ -------------- -------------- ------
* Reclassified.
Tel-Aviv, March 11, 2025
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED DECEMBER 31
(NIS million)
------------------------------------------------------------------------
Consolidated
-------------------------------------------------- -------------------
2024 2023 2022
-------------------------------------------------- ----- ----- -----
Net profit before attribution to non-controlling
interests 2,476 2,262 1,726
Net profit attributed to non-controlling interests (105) (90) (59)
--------------------------------------------------- ----- ----- -----
Net profit attributed to the shareholders of the
Bank 2,371 2,172 1,667
Other comprehensive income (loss) before taxes:
Adjustments of available for sale bonds to fair
value, net 31 213 (441)
Adjustments of liabilities in respect of employee
benefits(1) (60) 25 235
--------------------------------------------------- ----- ----- -----
Other comprehensive income (loss) before taxes (29) 238 (206)
Related tax effect 9 (81) 71
--------------------------------------------------- ----- ----- -----
Other comprehensive income (loss) before
attribution to non-controlling interests, after
taxes (20) 157 (135)
Less other comprehensive income (loss) attributed
to non-controlling interests 3 9 (13)
--------------------------------------------------- ----- ----- -----
Other comprehensive income (loss) attributed to the
shareholders of the Bank, after taxes (23) 148 (122)
--------------------------------------------------- ----- ----- -----
Comprehensive income before attribution to
non-controlling interests 2,456 2,419 1,591
Comprehensive income attributed to non-controlling
interests (108) (99) (46)
--------------------------------------------------- ----- ----- -----
Comprehensive income attributed to the shareholders
of the Bank 2,348 2,320 1,545
--------------------------------------------------- ----- ----- -----
(1) Mostly reflects adjustments in respect of actuarial assessments as
of the end of the period regarding defined benefits pension plans, of
amounts recorded in the past in other comprehensive profit.
BALANCE SHEET AS AT DECEMBER 31
(NIS million)
----------------------------------------------------------------------
Consolidated The Bank
--------------------------------- ---------------- ----------------
2024 2023 2024 2023
--------------------------------- ------- ------- ------- -------
Assets
Cash and deposits with banks 77,175 68,866 76,194 67,472
Securities 34,396 26,985 31,996 25,940
Securities which were borrowed 70 57 70 57
Credit to the public 131,050 119,240 124,573 113,118
Provision for Credit losses (1,634) (1,618) (1,533) (1,520)
---------------------------------- ------- ------- ------- -------
Credit to the public, net 129,416 117,622 123,040 111,598
Credit to the government 1,496 1,055 789 369
Investment in equity-basis
investees 842 786 1,826 1,642
Premises and equipment 867 877 847 855
Intangible assets 363 328 360 324
Assets in respect of derivative
instruments 2,565 3,651 2,565 3,651
Other assets(2) 1,373 1,366 1,290 1,293
Total assets 248,563 221,593 238,977 213,201
---------------------------------- ------- ------- ------- -------
Liabilities and Shareholders'
Equity
Deposits from the public 214,755 191,125 207,007 184,082
Deposits from banks 2,508 4,314 4,091 6,344
Deposits from the Government 2,540 750 2,540 750
Securities lent or sold under
agreements to repurchase 2,304 - 2,304 -
Bonds and subordinated
capital notes 4,479 4,767 2,218 2,442
Liabilities in respect of
derivative instruments 2,729 3,784 2,732 3,790
Other liabilities(1)(3) 5,164 4,207 4,655 3,722
Total liabilities 234,479 208,947 225,547 201,130
---------------------------------- ------- ------- ------- -------
Capital attributed to the
shareholders of the Bank 13,430 12,071 13,430 12,071
Non-controlling interests 654 575 - -
---------------------------------- ------- ------- ------- -------
Total equity 14,084 12,646 13,430 12,071
---------------------------------- ------- ------- ------- -------
Total liabilities and
shareholders' equity 248,563 221,593 238,977 213,201
---------------------------------- ------- ------- ------- -------
(1) Of which: provisions for credit losses in respect of
off-balance sheet credit instruments in the amount of NIS 177 million
and NIS 165 million (consolidated) and NIS 173 million and NIS 161
million (the Bank) as of December 31, 2024 and 2023, respectively.
(2) Of which: other assets measured at fair value in the amount of
NIS 1 million consolidated and the Bank (31.12.23 - NIS 10 million
consolidated and the Bank). (3) Of which: other liabilities
measured at fair value in the amount of NIS 1 million consolidated and
the Bank (31.12.23 - NIS 11 million consolidated and the Bank).
STATEMENT OF CHANGES IN EQUITY
(NIS million)
------------------------------------------------------------------------------------------
Share Accumulated
capital other Total
and comprehensive share- Non-
premium income Retained holders' controlling
(1) (loss) earnings(2) equity interests Total equity
--------------- ------- ------------- ----------- -------- ----------- ------------
Balance as at
January 1,
2022 927 (181) 9,213 9,959 430 10,389
Changes during
2022 -
Net profit for
the year - - 1,667 1,667 59 1,726
Dividend - - (945) (945) - (945)
Other
comprehensive
loss, after tax
effect - (122) - (122) (13) (135)
---------------- ------- ------------- ----------- -------- ----------- ------------
Balance as at
December 31,
2022 927 (303) 9,935 10,559 476 11,035
Adjustment of
the opening
balance, net of
tax, due to the
effect of
initial
implementation
in investee
company* - - (10) (10) - (10)
---------------- ------- ------------- ----------- -------- ----------- ------------
Balance as at
January 1,
2023, following
initial
implementation 927 (303) 9,925 10,549 476 11,025
---------------- ------- ------------- ----------- -------- ----------- ------------
Changes during
2023 -
Net profit for
the year - - 2,172 2,172 90 2,262
Dividend - - (798) (798) - (798)
Other
comprehensive
income, after
tax effect - 148 - 148 9 157
---------------- ------- ------------- ----------- -------- ----------- ------------
Balance as at
December 31,
2023 927 (155) 11,299 12,071 575 12,646
Changes during
2024 -
Net profit for
the year - - 2,371 2,371 105 2,476
Dividend - - (989) (989) (29) (1,018)
Other
comprehensive
income (loss),
after tax
effect - (23) - (23) 3 (20)
Balance as at
December 31,
2024 927 (178) 12,681 13,430 654 14,084
---------------- ------- ------------- ----------- -------- ----------- ------------
* Cumulative effect of the initial implementation of US accounting principles in the
matter of financial instruments - credit losses (ASC-326). (1) Including share premium
of NIS 313 million (as from 1992 onwards). (2) Including an amount of NIS 2,391 million
which cannot be distributed as dividend.
Contact:
Dafna Zucker
First International Bank of Israel
zucker.d@fibi.co.il
+972-3-519-6224
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SOURCE First International Bank of Israel
(END) Dow Jones Newswires
March 12, 2025 03:58 ET (07:58 GMT)
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