Bank Mizrahi-Tefahot reported a net profit of NIS 404 million during the first quarter of 2019. This profit is up from NIS 343 earned by the Bank during the first quarter of 2018 and which represents an increase of 18%. Bank Mizrahi-Tefahot’s return on equity rose of 11.3%, as compared to 10.3% for the first quarter, a return that is considerably higher than the 8.5% for the whole year of 2018 (when the Bank paid a hefty fine to the US government). In addition, the Bank’s income from banking activities jumped 18.2% to NIS 1.35 billion. However, its efficiency ratio dropped to 58.1% from 59.1% last year during the same quarter. Mizrahi-Tefahot’s mortgage portfolio stood at NIS 127 billion at the end of the quarter, up 5.5% in the year. The Bank’s income from small business lending grew 14.2%, middle-sized business lending 15%, and income from large business’s by 7.6%.
The Bank’s equity to loans now stands at 10.2 above the minimum of 9.83 set by the Bank of Israel for paying dividends. Nevertheless, Mizrahi-Tefahot will wait until the next quarter to resume paying dividends.
