Net income - NIS 2 billion ($571 million) in the second quarter and NIS 3.6 billion ($1.03 billion) in the first half of the year
Return on equity - 18.5% in Q2 and 17.1% in H1
Credit portfolio - 12.3% growth in H1
Further improvement in the efficiency ratio - 35% for Q2 and 39.7% for H1 2022
Leumi to distribute a NIS 400 million ($114 million) dividend
TEL AVIV, Israel, Aug. 16, 2022 /PRNewswire/ --
Net income in the second quarter of 2022 reached NIS 2 billion ($571 million), compared to NIS 1.7 billion ($486 million) in the corresponding quarter last year. Net income in the first half of 2022 reached NIS 3.6 billion ($1.03 billion), compared to NIS 3 billion ($857 million) in the corresponding period last year.
Return on equity in the second quarter of 2022 was 18.5%, compared with 16.8% in the corresponding quarter last year. Return on equity in the first half of 2022 was 17.1%, compared with 15.5% in the corresponding period last year.
Efficiency ratio in the second quarter of 2022 was 35%, compared with 42% in the corresponding quarter last year. The efficiency ratio in the first half of 2022, net of the results of Leumi USA, was 39.7%, compared with 45% in the corresponding period last year. The efficiency ratio during the reporting period and the second quarter of 2022 was affected by the merger of Leumi USA with Valley National Bank.
Finalized merger between Leumi USA and Valley Bank - On April 1, 2022, the merger between Leumi USA and Valley National Bank was completed. As a result of the merger, a profit of NIS 645 million ($184 million), net of tax, was recorded (out of this amount, NIS 194 million - $55 million - was recorded during the first quarter of 2022, with the balance being recorded in the second quarter).
Dividend - Leumi (TASE: LUMI) will distribute a NIS 400 million dividend ($114 million), which represents 20% of the net income for the second quarter of 2022.
Growth in the credit portfolio - the Bank continues to focus its growth on the credit portfolio in the corporate, commercial and mortgage segments. During the first half of the year, the credit portfolio grew by 12.3%.
Loan loss expenses (income) in the first half of 2022, net of the results of Leumi USA, reflect an expense rate of 0.04% of the average outstanding loans to the public, compared to an income rate of 0.26% in the corresponding period last year. The loan loss expense during the first half of the year stems from an increase in the collective provision, which was offset by collections.
Net interest income in the first half of 2022, net of the results of Leumi USA, reached NIS 5.8 billion ($1.7 billion), compared to approx. NIS 4.7 billion ($1.3 billion) in the corresponding period last year, a 23% increase. The increase stems from a growth in the Bank's credit portfolio and from gaps in the CPI and interest rates from one period to another.
Non-interest finance income in the first half of 2022, net of the results of Leumi USA, reached NIS 0.7 billion ($200 million), compared to approx. NIS 1 billion ($286 million) in the corresponding period last year. The income during the reporting period was mainly affected by the profit from Leumi USA's merger with Valley National Bank and from market declines.
Total operating and other expenses in the first half of 2022, net of the results of Leumi USA, were down by NIS 116 million ($33 million) compared with the same period last year, a 3.4% decrease.
Capital ratios - Common Equity Tier 1 capital ratio as at June 30, 2022 was 11.25%, and the total capital ratio was 14.00%.
Sale of Leumi's HQ in Tel Aviv ('Beit Mani') - As part of the preparations to complete the transition of the Bank's headquarters to Lod in 2023, during April 2022 the Bank entered into an agreement to sell one of its headquarters buildings in Tel Aviv. This sale is expected to generate a pre-tax capital gain of NIS 524 million ($150 million), to be recorded in 2023.
Development of balance sheet items (a) :
Shareholder's equity as at June 30, 2022 totaled NIS 47.1 billion ($13.5 billion), compared to NIS 40.8 billion ($11.7 billion) as at June 30, 2021.
Net loans to the public as at June 30, 2022 totaled NIS 365 billion ($104 billion), compared with NIS 298 billion ($85 billion) as at June 30, 2021, a 22.5% increase. Most of the increase is due to mortgage, middle-market and corporate loans.
Deposits by the public as at June 30, 2022 totaled NIS 533 billion ($152 billion), compared with NIS 464 billion ($133 billion) as at June 30, 2021, a 14.9% increase.
Leumi Group - Principal Data from the Financial Statements
Profit and Profitability (in NIS millions)
For the six months ended
Change in NIS
Change in %
Net Interest income
Loan loss expenses (income)
Operating and other expenses
Profit before tax
Provision for tax
Profit after tax
Bank's share in associates' profits
Net income attributable to non-controlling
Net income attributable to the banking
Return on equity (%)
Earnings per share (NIS)
Development of Balance Sheet Items (in NIS millions) (a)
As at June 30
Net Loans to the public
Deposits by the public
Principal Financial Ratios (%)
As at June 30
Net loans to the public to total assets (a)
Deposits by the public to total assets (a)
Total equity to risk assets
Total Tier 1 equity to risk assets
Liquidity coverage ratio
a. The data does not include the balances of Leumi USA, which - as of April 1, 2022 - is not consolidated in the Bank's
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 June 30, 2022, NIS 3.50.
Conference Call Details
A conference call to discuss the results will be held today at 5 PM (Israel); 3 PM (UK); 10:00 AM (ET).
Conference Call Dial-in Details (no passcode required):
US & Canada: 1-888-407-2553
All other locations: +972-3-918-0610
The call will be accompanied by a presentation which will be published today on the Israeli Securities Authority reporting website (MAGNA). It will also be available on the Leumi website under Investor Relations, in the Financial Statements page, Investor Presentation and Conference Call.
An archived recording will be available on the Leumi website one business day after the call ends.
The conference call 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.
SOURCE Bank Leumi