FIBI FIRST INTERNATIONAL BANK OF ISRAEL Overview 31. 12. 14
FIBI FIRST INTERNATIONAL BANK OF ISRAEL Net Profit and ROE (NIS Millions) ROE 8. 5% 8. 4% **3. 5% Average capital 6, 715 % +2. 5 Equity capital (tier 1) to risk components ratio 6, 886 % +1. 3 6, 974 6, 591 9. 98% 4% +3. 6, 812 9. 73% *Assuming equity capital (tier 1) to risk components ratio of the Israeli Other 4 leading Banks average the ROE is 7. 4% in 2014. Additionally, regulation and new wage agreement in LEUMI further reduced the ROE by 0. 7%. The annual net income including amortization of 52 NIS millions of investment in subsidiaries, further reduced the ROE by 0. 8%. **ROE in Q 4/2014 was affected by the regulatory implementation and the implementation of LEUMI wage agreement which lowered ROE by 2. 4% in annual terms. 2
FIBI FIRST INTERNATIONAL BANK OF ISRAEL One-time effects including regulation in financial terms on Q 4/2014 and 2014 Effect on the decrease in profit (NIS Millions) 2014 Q 4/2014 Net Gross Implementation of Bank of Israel directives regarding group provision 28 45 Implementation of Bank of Israel instructions regarding software costs 11 18 3 5 Future Effects Implementation of the new LEUMI Salaries agreement 10 16 Total 49 79 41 Increase safety cushion for credit Lower depreciation expense in future Reducing future rise of salary expenses and inflicts a decrease in the provision (of about 108 NIS Millions). From this amount the effect of vacation and sick leave payments in respect of retirement will be deducted. 66 ROE effect in annual terms 0. 7% 2. 4% 3
FIBI Statements of income 2014 – 2013 FIRST INTERNATIONAL BANK OF ISRAEL (NIS Millions) Interest and non Interest Incomes Gross Change change in % 2014 2013 2, 248 2, 387 (139) (5. 8%) 89 97 (8) (8. 2%) 44 73 (79) (39. 7%) 2, 012 1, 667 1, 471 638 113 2, 090 1, 682 1, 418 571 102 (78) (15) 53 68 11 (3. 7%) (0. 9%) 3. 7% 11. 7% 10. 8% 1 0. 0% (Income) Expenses from credit losses (0. 13% income provision rate) Of which: Expenses from credit losses - excluding Group provisions (rate of 0. 06%) Interest income after Expenses from credit losses Non interest income Of which: Commissions * Of which: Commissions for clients activity in the capital market Expenses from capital market Commissions Total operating and other expenses (Excluding Commissions for customer activity in the capital market and the effect of the Salaries agreement LEUMI Bank ) The effect of the Salaries agreement LEUMI Bank Profit before taxes Provision for taxes on profit The bank’s share in VISA CAL profit Net profit ROE Equity capital (tier 1) to risk components ratio (end of period) 2, 749 2, 748 16 801 340 35 478 7. 0% 9. 73% 922 376 30 555 8. 5% 9. 98% Bank of Israel average interest rate 0. 6% 1. 4% 16 (121) (13. 1%) (36) (9. 6%) 5 16. 7% (77) (13. 9%) (0. 8%) * Excluding the effect of FAS 91 implementation which increased the net interest income by 83 NIS Millions and reduced commissions in 96 NIS Millions. 4
FIBI FIRST INTERNATIONAL BANK OF ISRAEL positive influences Main changes in net profit 2014 - 2013 (NIS Millions) Net increase in commissions paid Capital gain on sale of FIBI London shares Decrease in expenses from credit losses Of which: the effect of the Supervisor of Banks instructions in the matter of - Group basis provision in respect to consumer credit to private individuals 2013 Gross change Net change An Income increase from capital market commissions 2014 86 638 571 68 43 (113) (102) (11) (7 ) 31 - 31 26 (89) (97) 8 15 (45) (28) (45) 5
FIBI FIRST INTERNATIONAL BANK OF ISRAEL Main changes in net profit 2014 - 2013 (NIS Millions) Negative influences Gross change 2014 2013 1, 991 2, 073 (82) (50) The effect of last year increase in tax rate on deferred tax balances (34) Net decrease in the reconciliations in fair value of derivative instruments 2 50 (48) (30) 55 91 (36) (21) Interest income, net (the effect of the Decrease in Bank of Israel interest rate) Decrease in other income (Decrease in the Realization of fixed assets last year and funding's of the severance pay profits) The effect of FAS 91 implementation Net change (163) (8) Total decrease of 77 Nis millions in net profit 6
FIBI FIRST INTERNATIONAL BANK OF ISRAEL Statements of financing income 2014 – 2013 (NIS Millions) 2014 2013 Gross change Net change 2, 101 2, 187 (86) (3. 9%) 230 200 30 15. 0% 2, 331 2, 387 (56) (2. 3%) (2) 5 (7) 2 50 (48) 2, 331 2, 332 (1) (0. 0%) Profits from the sale of bonds and trading portfolio 257 259 (2) (0. 8%) Profits from sale of bonds and trading portfolio 197 174 23 13. 2% 60 85 (25) (29. 4%) 2, 074 2, 073 1 (0. 0%) (83) - (83) Other financial income and financial intermediation free capital 1, 991 2, 073 (82) Bank of Israel average interest rate 0. 6% 1. 4% (0. 8%) 7 Total Interest income Total non-interest financing income Interest income and non-interest financing Of which: Hedging fluctuations in the tax provision regarding FIBI London Fair value of derivatives Total income from financing (interest and non-interest) Profits from sale of shares Other financial income and financial intermediation free capital FAS 91 influence on Interest income and non-interest financing
FIBI Statements of income Q 4/2014 –Q 4/2013 FIRST INTERNATIONAL BANK OF ISRAEL (NIS Millions) Interest and non Interest Incomes (Income) Expenses from credit losses (0. 56% income provision rate Including 45 NIS millions for Group provision in 2014) Interest income after Expenses from credit losses Non interest income Of which: Commissions * Of which: Commissions for clients activity in the capital market Expenses from capital market Commissions Decrease in other income (mainly funding's of the severance pay profits) Total operating and other expenses (Excluding Commissions for customer activity in the capital market and the effect of Bank LEUMI Salaries agreement) The effect of Bank LEUMI Salaries agreement Profit before taxes Provision for taxes on profit The bank’s share in VISA CAL profit Net profit ROE Bank of Israel average interest rate Gross Change change in % Q 4/2014 Q 4/2013 553 594 (41) (6. 9%) 97 32 65 (2. 0%) 401 429 375 167 32 502 448 368 152 29 (101) (20. 1%) (19) (4. 2%) 7 1. 9% 15 9. 9% 3 10. 3% 2 20 (18) - 679 698 (19) (2. 7%) 16 103 46 7 61 3. 5% 0. 25% 223 88 7 136 8. 4% 1. 00% 16 (120) (53. 8%) (42) (47. 7%) 0. 0% (75) (55. 1%) (0. 75%) * Excluding the effect of FAS 91 implementation that increased the net interest income by 19 NIS Millions and reduced their income from commissions in 22 NIS Millions, 2 million effect on the net profit. 8
FIBI FIRST INTERNATIONAL BANK OF ISRAEL Excluding the increase in fees paid and the effect of LEUMI agreement stability in operating expenses Operating & Other Expenses (NIS Millions) 2014 2013 28 1. 0% 10 18 (the effect of the new LEUMI wage agreement is amounted to 16 NIS Millions. 60% of the Salaries expenses in FIBI are Related to LEUMI. * (Including amortization of 52 NIS Millions per year) 9
FIBI % FIRST INTERNATIONAL BANK OF ISRAEL Consolidated Operational Efficiency Ratio Total Operating Expenses to Total Income Total Operating Expenses / Total Income ( Before Expenses for credit losses) Total Operating Expenses Total Income 76. 4% 73. 7% 10
FIBI FIRST INTERNATIONAL BANK OF ISRAEL Statement Of Changes in Equity 2014 (NIS Millions) 7, 025 Balance At 31/12/13 Total Shareholders Equity Net Earnings 478 Net profit Attributed to non-controlling interests 18 Change in capital reserve (25) Dividend (285) Balance At 31/12/14 Total Shareholders Equity (Including non-contro. Iling interests) 7, 211 Equity capital to risk components ratio (Basel III) Ratio of capital to risk assets 31. 12. 14 31. 12. 13 Tier 1 9. 73% 9. 98% Total 14. 27% 14. 66% 11
FIBI Credit to the Public by segments FIRST INTERNATIONAL BANK OF ISRAEL (NIS Millions) 31. 12. 14 31. 12. 13 Rates of change in average balances compared to the average in 2013 Private + Retail (Households) 17, 051 16, 376 4. 0% Mortgage 18, 547 17, 427 6. 1% Total private clients 35, 598 33, 803 5. 1% Corporate 20, 428 21, 816 0. 9% Commercial & Small Business 12, 931 13, 087 (1. 2%) Small Business 5, 221 5, 442 (3. 8%) Total Credit to the Public 68, 957 68, 706 2. 4% Our share in local activity (average for the period) 8. 8% 12
FIBI FIRST INTERNATIONAL BANK OF ISRAEL Development of the Group's Credit portfolio The share of credit to households, private banking and mortgages has increased significantly Credit mix in 12/2014 Total Credit – 69. 0 Nis millions Credit mix in 2013 Total Credit – 68. 7 Nis millions In 2002, the Bank focused primarily on business credit Credit mix in 2002 Total Credit – 47. 6 Nis millions Today, the Bank's credit mix portfolio is well distributed and reflects the Bank's proportionate approach 13
FIBI FIRST INTERNATIONAL BANK OF ISRAEL Expenses for Credit Losses to Credit to the Public Ratio ** * * Excluding the regulatory impact this year and last year, the rate Provision for credit losses this year is 0. 06%, compared to 0. 11% in 2013 ** The data from Banks in 2014 is still presented without Bank Leumi. 14
FIBI Deposits from the Public breakdown by segments (NIS Millions) FIRST INTERNATIONAL BANK OF ISRAEL 31. 12. 14 Total private clients 49, 031 Rates of change in Gross average balances Change 31. 12. 13 compared to the Compared to average in 2013 31. 12. 13 48, 301 730 * (2. 2%) (23%) (54%) Corporate 25, 209 20, 684 4, 525 26. 5% Commercial + Small Business 20, 915 20, 137 778 17. 3% Total (23%) 31. 12. 13 – () 95, 155 89, 122 6, 033 6. 0% Deposits from the public to credit to the public, net 31. 12. 14 138. 0% * As a result of Transition clients fund to capital market investment 31. 12. 13 129. 7% 15
FIBI FIRST INTERNATIONAL BANK OF ISRAEL clients activity in the capital market Client assets portfolio (deposits & securities) present Continued growth (average balances, NIS Billions) 8. 5% 12% 571 526 273 639 330 8. 4% 23 296 11. 5% 34 13% 11% 21 2% 2 28 7% 6 Increase of 34 NIS Billions (11. 5%) in client assets portfolio, A similar rate of increase in commissions from the capital market 16
FIBI FIRST INTERNATIONAL BANK OF ISRAEL Equity capital (tier 1) ratio * -0. 66% * -0. 71% -1. 3 -0. 56% 14. 30% 14. 57% 13. 42% * Equity ratio (Tier 1) all Banks are updated to 31/12/14, except Leumi that is updated to 30/9/14. 17
FIBI FIRST INTERNATIONAL BANK OF ISRAEL FIBI is demonstrating relative strength in main financial ratios 2014 Total operating expenses / Revenue (before credit losses expenses) Deposits from the public to credit to the public equity capital (tier 1) to risk components ratio NPL-Provision for credit losses to total impaired credit (without mortgages)** Dividend yield 9. 73% 138. 0% 1 76. 4% 4 96. 1% 2 ***5. 1% 9. 29% 3 112. 6% 4 65. 2% 2 64. 7% 5 1. 7% 9. 44% 2 114. 9% 3 74. 7% 3 72. 5% 3 - 9. 44% 2 127. 3% 2 85. 3% 5 71. 9% 4 - 9. 12% Other 4 leading Banks Average 1 4 103. 3% 5 60. 8% 1 98. 3% 1 - 9. 34% 113. 8% 71. 5% *In annual terms. ** Calculated only on the balance sheet credit. *** Including dividend paid during 2014. All Banks financial Ratios are updated to 31/12/14, except Leumi that is updated to 30/9/14 70. 4% 18
FIBI FIRST INTERNATIONAL BANK OF ISRAEL Specialization Subsidiaries net profit Net profit 2014 Nis ROE Millions Retail clients 44. 2 § Commercial/ Corporate (The Influence § Defense forces personnel Factoring equity capital (tier 1) to risk components ratio § § § Capital Markets, Trust & Custody services § Teachers sector § 9. 7% 15. 8% • Expansion activities with private and institutional clients • Developing wealthy clients branches 14. 5% • Winning in the teachers loans tender • Growth at the Israeli-Arab sector 12. 0% • Increasing network coverage in the ultra orthodox sector Retail clients § 43. 1 4. 2% • Extension of the agreement with Hever • Renewal of activities with Small Business Fund • Expansion of the factoring activity Private & affluent banking § of Group basis provision is amounted to )20 NIS, 1. 4% in ROE terms Israeli-Arab sector § Ultra orthodox sector 36. 2 27. 2 7. 5% 7. 3% Growth centers 19
FIBI FIRST INTERNATIONAL BANK OF ISRAEL n Structural changes in the group n n Branch deployment Improvements in the credit sector Divestment of FIBI London - Net capital gain of 26 NIS million. Reduction in the management team members of FIBI and of subsidiaries Merger of all portfolio management companies into one company. U Bank – consolidation of headquarters functions (currently being implemented) Reduction of one district headquarters Focus on planning the long term optimal branch deployment at the Group level: n In 2014 the group closed 4 branches and opened 3 new branches n During 2014 the group reduced its real estate areas by 2. 2% a trend that is expected to continue in the coming years n Since 2009 the Group opened 21 branches as part due to demographic changes and elimination of duplications in the groups deployment. New branches are constructed in a more efficient manner. n Client Asset Management Major steps at FIBI group in 2014 - 2015 with an emphasis on efficiency n n § § Expansion and improvement in the range of investment and savings products due to the low interest environment Unite the treatment with all clients assets under one division, while the comprehensive service to the customer (including consolidation of trading rooms) Platinum system upgrade affluent to clients Processes improvements aimed at promoting cross-selling, increasing customer base and utilization of existing customers Expansion of direct banking channels and upgrade to business website Mortgage streamlining work processes and shortening branches improving customer response times Focus on promoting factoring activities 20
FIBI FIRST INTERNATIONAL BANK OF ISRAEL FIBI ‘s Technological innovation -Capital market trading system , Investment Radar , Upgrading and developing the website and clients -focusing banking Duchifat-Net - Advanced trading platform within the Bank's website with no dedicated software that support professional trading in the Israel and abroad A wide range of capital market trading options Buying and selling activities of securities in Israel and the United States and Europe. Short selling stocks and bonds in the country, buy / sell / write options in Israel and abroad. Other commercial functions Stop Loss in Israel and abroad. Scenarios and simulations derivatives collateral Online personal clients oriented service A wide range of information and useful tips alerts Wide useful customer information Alerts in the life of the account Useful Tips "The investment radar" helps regular professional management of the client's investment portfolio 21
FIBI FIRST INTERNATIONAL BANK OF ISRAEL n n Net profit Main parameters Equity to risk components ratio Private credit growth Continued growth in activities Continued growth in the investment sector Growth in operating income Highlights for 2014 net profit - 478 NIS million, ROE - 7. 0%. One-time regulation affected 0. 7% of the ROE. Q 4/14 net profit - 61 NIS million. ROE is 3. 5%. One-time regulation affected 2. 4% of the ROE (41 NIS million) • Equity to risk components ratio – 9. 73% After a dividend distribution of 285 NIS million n An increase of 5% in average credit balances of private and householders (including mortgages) in 2014 n An increase of 34 NIS billion (11. 5%) in the value of the Bank's customer portfolio, amounting to 330 NIS billion. n An increase of 3. 7% in commissions (excluding FAS 91). 12% increase in capital market commissions. 22
FIBI Macro and regulatory effects FIRST INTERNATIONAL BANK OF ISRAEL n Lower interest rate Operating A moderate increase in expenses restraint Maintainin g the quality of the loan portfolio and dispersion Highlights for 2014 Decrease in the Expenses for credit losses NPL (Without mortgage) The high dividend yield in Israeli banking industrial n n n Led to a reduction in income margins, current accounts and deposits in FIBI group This effect was partially offset by an increase in revenue margins, credit and mortgages and an increase in the volume of deposits Minimal increase of 1% in expenses. Excluding the one-time expenses – Stability A decrease of 100 full-time employees in the group compared to the end of 2013. • Expenses for credit losses 0. 13% compare to 0. 14% last year Including the Implementation of the directives of the Supervisor of Banks n Rate of expenses for credit damaged non-interest is the highest in the banking system (excluding mortgages) 96. 1%, including mortgages 110. 7%. n Distribution of a dividend of 285 NIS million. Including a dividend distribution of 55 NIS million on 11/14. Dividend yield reached 3. 5% in 2013 and 5. 1% in 2014. n 23
Скачать презентацию FIBI FIRST INTERNATIONAL BANK OF ISRAEL Overview 31
89eb84d4b9027d59466d6af31b5a8999.ppt