Israel’s First International Bank net profit drops 15% in second quarter

A man talks on his mobile phone as he walks past a branch of the First International Bank of Israel in Jerusalem January 27, 2014. REUTERS/Baz Ratner

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JERUSALEM, Aug 16 (Reuters) – First International Bank of Israel (FIBI) (FIBI.TA) reported a 15% drop in second-quarter net profit on Tuesday after posting a large one-time post-COVID gain the year last, and said he would distribute 50% as a dividend.

Quarterly net profit was 342 million shekels ($104 million), down from 404 million a year earlier when it had “exceptional credit loss income” as it unwound a provision made during the pandemic.

The bank’s board approved a dividend payout of NIS 170 million, or NIS 1.69 per share.

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FIBI said it had NIS 31 million in credit losses for the quarter, following credit loss income of NIS 128 million last year.

The total value of problem credits fell about 21% from the same period last year, and 15% from the end of 2021, he said.

Net interest income rose 21% to 859 million shekels.

The bank’s Tier 1 capital ratio fell to 10.15% from 11.46% at the end of 2021.

Earlier Tuesday, Leumi (LUMI.TA), one of Israel’s two largest lenders, reported quarterly net profit of NIS 1.99 billion, up from NIS 1.67 billion a year earlier. Read more

($1 = NIS 3.2854)

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Reporting by Ari Rabinovitch; Editing by Steven Scheer and David Holmes

Our standards: The Thomson Reuters Trust Principles.

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