Bank Leumi reports a 40% increase in the net income for 2024, which amounted to NIS 9.8 billion ($2.7 billion); ROE - 17%; Capital return in 2024 totals approx. NIS 4 billion ($1.1 billion)
PR Newswire
TEL AVIV, Israel, March 4, 2025
-- Return on equity in Q4 2024: 16.2%
-- Capital return in Q4 2024 amounts to NIS 980 million ($269 million), out
of which NIS 706 million ($194 million) is cash dividend and the
remainder is share buyback -- which together constitute 40% of the net
income for the quarter. Total capital return for 2024 amounts to approx.
NIS 4 billion ($1.1 billion)
-- Best efficiency ratio among Israeli banks: 29.9%
-- In 2024, the loan portfolio was up by 8.6% and deposits by the public
were up by 8.9%
-- Loan portfolio quality: NPL ratio and rate of troubled debts continue to
be low, standing at 0.5% and 1.4% respectively
-- Robust financial indicators: liquidity coverage ratio of 123%, Tier 1
capital ratio of 12.17% and total capital ratio of 14.83%
-- Bank Leumi sets financial targets for the first time: For the years
2025-26, the bank is targeting an annual net income of NIS 9-11 billion
($2.5 - $3.0 billion); return on equity of 15%-16% per year; capital
return of at least 50% of the net income each year; and an annual growth
in the loan portfolio of 8%-10%
TEL AVIV, Israel, March 4, 2025 /PRNewswire/ -- Bank Leumi (TASE: LUMI) published today its financial statements for 2024:
Net income in 2024 amounted to NIS 9.8 billion ($2.7 billion), compared to NIS 7.0 billion ($1.9 billion) in 2023. Net income in Q4 2024 amounted to NIS 2.5 billion ($685 million), compared to NIS 1.8 billion ($494 million) in the corresponding period last year.
Return on equity in 2024 was 16.9%, compared with 13.7% in 2023. ROE in Q4 2024 was 16.2%, compared with 13.8% in the corresponding period last year.
The efficiency ratio in 2024 was 29.9%, compared with 32.6% in 2023. The efficiency ratio in Q4 2024 was 30.9%, compared with 36.1% in the corresponding period last year. In 2024, the Bank increased its income without increasing expenses.
Capital return in Q4 2024 amounts to NIS 980 million ($269 million), out of which NIS 706 million ($194 million) is cash dividend and the remainder is share buyback. The dividend and share buyback constitute 40% of the net income for the quarter. Total capital return from the beginning of the year amounts to NIS 3.9 billion ($1.1 billion), out of which NIS 2.9 billion ($0.8 billion) is cash dividend and NIS 1 billion ($0.3 billion) is share buyback.
Responsible growth in the loan portfolio in strategic segments: The Bank continues to focus its growth in the credit portfolio in the corporate, commercial and mortgage segments. In 2024, the credit portfolio grew by a total rate of 8.6%, with the corporate portfolio growing by 7.8%, the commercial portfolio growing by 4.0% and the mortgage portfolio growing by 11.0%.
Loan portfolio quality: Rate of troubled debts and NPL ratio continue to be low and reflect the quality of the loan portfolio, standing at 1.4% and 0.5% respectively. From the beginning of the year, troubled debts decreased by NIS 900 million ($247 million) and NPL decreased by NIS 1.3 billion ($356 million).
Deposits by the public increased by 8.9% in 2024.
Loan loss expenses in 2024 reflect an expense rate of 0.16% of the average outstanding loans to the public, compared to an expense rate of 0.58% in 2023. The expense in 2023 was high mainly due to the outbreak of the war. In 2024, the expense -- which is entirely collective -- continues to reflect a cautious approach in light of the security and economic uncertainty.
High capital adequacy: Common equity tier 1 capital ratio as at December 31, 2024 was 12.17% and total capital ratio was 14.83%.
Liquidity coverage ratio as at December 31, 2024 was 123%.
The Bank's initiatives due to the war: The Bank implemented many initiatives for the benefit of the general public and its customers, including a series of unique benefits for IDF reservists, business owners and self-employed.
These initiatives are part of Leumi's policy to expand the Bank of Israel's relief program, publishing its own relief program to both business and retail customers from across Israel -- with an emphasis on residents of the southern and northern confrontation lines.
The reliefs to eligible customers included, among others: full exemption from mortgage payments, exemption from loan repayments for retail customers and small businesses, designated aid funds, exemption from common current account fees, exemption from interest charges on current account overdraft and more.
Since the outbreak of the war, the Bank made substantial donations to residents of the southern and northern confrontation lines, IDF soldiers - both on active and reserve duty, hospitals and first responder and aid organizations.
In addition, the Bank initiated and financed a series of projects to rehabilitate southern Israel and other populations affected by the war, including: Providing ongoing multi-year assistance to Kibbutz Be'eri; the "National Harvest" project - under which college and university students who volunteered to assist farmers in harvesting crops on an ongoing basis received a full year's academic tuition from the Bank; the "Leumi Matriculation" initiative, under which the Bank assists youth across the country to prepare for their matriculation exams, with an emphasis on high school students who were evacuated from the north and south; the "Bank Leumi Wedding Project", under which the bank funded weddings to dozens of reservist couples whom served an extended period of reserve duty during the war; in addition, after the report period the bank launched the "National Recognition Project", under which the Bank financed hundreds of vacations in Northern Israel to individuals who established a significant voluntary initiative during the war.
The updated cost of the reliefs and donations provided during the war is estimated at NIS 526 million ($144 million).
Strategic goals: The Bank's Board of Directors approved the Bank's strategy for the next three years, in accordance with the recommendation of the Bank's Senior Management, headed by President & CEO Hanan Friedman. At the same time, a number of strategic financial goals were set - for the first time - for the coming years, which are derived from the Bank's multi-year strategic plan.
Key financial targets for the years 2025-2026:
-- Annual net income: NIS 9-11 billion ($2.5 - $3.0 billion) -- Return on equity: 15%-16% each year -- Capital return: at least 50% of the net income each year -- Loan portfolio growth: 8%-10% each year
Development of balance sheet items:
Shareholders' equity as at December 31, 2024 totaled NIS 61.7 billion ($16.9 billion), compared to NIS 54.5 billion ($14.9 billion) as at December 31, 2023 - a 13.1% increase.
Net credit to the public as at December 31, 2024 totaled NIS 455.5 billion ($124.9 billion), compared to NIS 419.5 billion ($115.0 billion) as at December 31, 2023 - a 8.6% increase.
Housing loans (mortgages) as at December 31, 2024 totaled NIS 146.6 billion ($40.2 billion), compared to NIS 132.1 billion ($36.2 billion) as at December 31, 2023 - an 11.0% increase.
Credit to retail customers as at December 31, 2024 totaled NIS 30.6 billion ($8.4 billion), compared to NIS 30.2 billion ($8.3 billion) as at December 31, 2023 - a 1.3% increase.
Credit to small businesses as at December 31, 2024 totaled NIS 27.6 billion ($7.6 billion), compared to NIS 26.2 billion ($7.2 billion) as at December 31, 2023 - a 5.4% increase.
Middle-market credit as at December 31, 2024 totaled NIS 65.1 billion ($17.9 billion), compared to NIS 62.6 billion ($17.2 billion) as at December 31, 2023 - a 4.0% increase.
Corporate credit (including real estate) as at December 31, 2024 totaled NIS 137.3 billion ($37.6 billion), compared to NIS 127.4 billion ($34.9 billion) as at December 31, 2023 - a 7.8% increase.
Deposits by the public as at December 31, 2024 totaled NIS 618.3 billion ($169.5 billion), compared to NIS 567.8 billion ($155.7 billion) as at December 31, 2023 - a 8.9% increase.
Deposits by retail customers as at December 31, 2024 totaled NIS 225.8 billion ($61.9 billion), compared to NIS 216.9 billion ($59.5 billion) as at December 31, 2023 - a 4.1% increase.
Deposits by small businesses as at December 31, 2024 totaled NIS 61.2 billion ($16.8 billion), compared to NIS 56.1 billion ($15.4 billion) as at December 31, 2023 -- a 9.1% increase.
CET1 capital ratio as at December 31, 2024 was 12.17%, compared to 11.66% as at December 31, 2023.
Total capital ratio as at December 31, 2024 was 14.83%, compared to 14.72% as at December 31, 2023.
Leumi Group - Key Financials
------------------------------------------------------------------------------
Profit and Profitability (in NIS millions)
------------------------------------------------------------------------------
For the three months
ended December 31
--------------------------- ---------------------- ------------ -----------
Change in
2024 2023 NIS million Change in %
--------------------------- ---------- ---------- ------------ -----------
Net Interest income 3,819 3,850 (31) (0.8)
---------- ---------- ------------ -----------
Loan loss expenses 197 668 (471) (70.5)
---------- ---------- ------------ -----------
Non-interest income 1,728 1,297 431 33.2
---------- ---------- ------------ -----------
Operating and other
expenses 1,712 1,860 (148) (8.0)
--------------------------- ---------- ---------- ------------ -----------
Profit before tax 3,638 2,619 1,019 38.9
---------- ---------- ------------ -----------
Provision for tax 1,294 869 425 48.9
---------- ---------- ------------ -----------
Profit after tax 2,344 1,750 594 33.9
---------- ---------- ------------ -----------
The Bank's share in profits
of associates 107 76 31 40.8
---------- ---------- ------------ -----------
Net income attributable to
the bank's shareholders 2,451 1,826 625 34.2
--------------------------- ---------- ---------- ------------ -----------
Return on equity (%) 16.2 13.8
--------------------------- ---------- ---------- ------------ -----------
Earnings per share (NIS) 1.63 1.20
--------------------------- ---------- ---------- ------------ -----------
For the year ended
December 31
----------------------------- -------------------- ------------ -----------
Change in
2024 2023 NIS million Change in %
----------------------------- --------- --------- ------------ -----------
Net Interest income 16,509 15,997 512 3.2
--------- --------- ------------ -----------
Loan loss expenses 713 2,383 (1,670) (70.1)
--------- --------- ------------ -----------
Non-interest income 6,599 5,181 1,418 27.4
--------- --------- ------------ -----------
Operating and other expenses 6,904 6,894 10 0.1
----------------------------- --------- --------- ------------ -----------
Profit before tax 15,491 11,901 3,590 30.2
--------- --------- ------------ -----------
Provision for tax 5,422 3,988 1,434 36.0
--------- --------- ------------ -----------
Profit after tax 10,069 7,913 2,156 27.2
--------- --------- ------------ -----------
The Bank's share in profits
of associates (271) (886) 615 69.4
--------- --------- ------------ -----------
Net income attributable to
the bank's shareholders 9,798 7,027 2,771 39.4
----------------------------- --------- --------- ------------ -----------
Return on equity (%) 16.9 13.7
----------------------------- --------- --------- ------------ -----------
Earnings per share (NIS) 6.46 4.58
----------------------------- --------- --------- ------------ -----------
Development of Balance Sheet Items (in NIS millions)
-----------------------------------------------------------
December 31
-------------------------- ------------------ -----------
2024 2023 Change in %
-------------------------- -------- -------- -----------
Net loans to the public 455,519 419,486 8.6
-------------------------- -------- -------- -----------
Deposits by the public 618,301 567,824 8.9
-------------------------- -------- -------- -----------
Shareholders' equity 61,658 54,497 13.1
-------------------------- -------- -------- -----------
Total assets 785,551 731,497 7.4
-------------------------- -------- -------- -----------
Principal Financial Ratios (%)
-----------------------------------------------------------
December 31
---------------------------------------- -----------------
2024 2023
---------------------------------------- -------- -------
Net loans to the public to total assets 58.0 57.3
---------------------------------------- -------- -------
Deposits by the public to total assets 78.7 77.6
---------------------------------------- -------- -------
Total equity to risk assets 14.83 14.72
---------------------------------------- -------- -------
Tier 1 capital to risk assets 12.17 11.66
-------- -------
Leverage ratio 6.94 6.65
---------------------------------------- -------- -------
Liquidity coverage ratio 123 124
---------------------------------------- -------- -------
The data in this press release has been converted into US dollars solely for convenience purposes, at the representative exchange rate published by the Bank of Israel on December 31, 2024, NIS 3.647.
Conference Call Details
A webcast and conference call for analysts and investors will be held today at 5 PM (Israel); 3 PM (UK); 10 AM $(EST.UK)$ to discuss the results.
To access the webcast, please register via the link below:
https://veidan.activetrail.biz/BankLeumiQ4-2024
Alternatively, you can dial in to the conference call using one of the numbers below (no passcode required):
Israel: 03-9180610
UK: 0-800-917-9141
US & Canada: 1-866-527-8676
All other locations: +972-3-918-0610
Please allow sufficient time for registration.
The conference call and webcast will make use of a presentation which will be published on the day of the publication of the Financial Results on the Israeli Securities Authority reporting website (MAGNA) and on the Leumi website under Investor Relations.
An archived recording of the webcast will be available on the Leumi website one business day after the publication of results.
For more information visit the investor relations page on our website or contact Michael Klahr, VP, Head of Investor Relations, at investorrelations@bankleumi.co.il.
The conference call and webinar does not replace the need to review the latest periodic/quarterly reports containing full information, including forward-looking information, as defined in the Israeli Securities Law, and set out in the aforementioned reports.
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SOURCE Bank Leumi
/CONTACT: for media only: +972 76-8857
(END) Dow Jones Newswires
March 04, 2025 01:43 ET (06:43 GMT)
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