Israel Discount Bank, headed by Avi Levi, posted a net profit of NIS 1 billion for the first quarter this year, which is similar to the profit for the corresponding quarter of 2024.
The bank announced a new dividend policy. From the second quarter, the amount it can distribute will rise from 40% to 50% of its net profit.
A higher than customary dividend distribution is subject to approval by the Bank of Israel. The banks have been talking to the supervisor of banks about the possibility of a distribution higher than 40% of net profit. Discount Bank’s announcement about the second quarter is yet to be tested with the regulator, and is subject to his consent.
The banks’ first quarter profits have been hit by the surtax imposed by the government. Discount Bank says that, excluding the special tax, its net profit was NIS 1.11 billion in the first quarter. The bank’s return on equity was 13%, or 14% excluding the surtax. Return on equity in the corresponding quarter was 14.6%.
The bank’s net interest income in the first quarter of this year was NIS 2.66 billion, 4.7% more than in the corresponding quarter. The provision for credit losses was NIS 114 million, 39% higher than in the first quarter of last year. The credit loss expense was on a general basis, and resulted from an accounting write-down and growth in the credit portfolio rather than from a deterioration in the position of the banks’ customers. Credit to the public rose by 2.1% in the first quarter of this year.
Published by Globes, Israel business news – en.globes.co.il – on May 19, 2025.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2025.
