TEL AVIV, Israel, Feb. 26, 2020 /PRNewswire/ --
Continued Implementation of the Bank's Strategy:
Development of Balance Sheet Items:
Leumi Chairman of the Board, Dr. Samer Haj Yehia:
"The Leumi Group has completed 2019 with a net income of NIS 3,522 million, which reflects a 9.8% return on equity. In 2019, Leumi continued to distribute a dividend of 40% of the net income to its shareholders, in addition to executing a share buyback plan totaling NIS 700 million, bringing the total return amount to investors - in the form of dividends and share buyback - to NIS 2.1 billion. Leumi continued to streamline processes, introduce innovative products and adapt its services to its customers.
"This is an excellent opportunity to express - on behalf of the Bank's Board of Directors, Senior Management and employees - our deepest gratitude to our investors and to our wide, dedicated customer base, across all population segments in Israel and abroad, for the ongoing trust they place in our doing and chosen path.
"These results were achieved against a background of challenges and changes in the banking system - both internal and external, regulatory and technological, business and consumer-oriented - which require determination and adherence. These changes are expected to continue to take place in the future, and we at Leumi are working persistently to adapt our business model, while exercising open-mindedness and dynamic modes of action to achieve our goals.
"I would like to acknowledge the devotion and professionalism of the members of the Board of Directors, Senior Management and the Group's employees in achieving the goals and adapting our business model to ensure the continued positioning of Leumi as a leading entity in the Israeli banking system, providing the best, most innovative, professional and digital banking services to our customers.
"I am very proud to be heading Leumi and leading it to new heights. I appreciate the significant responsibility and supreme privilege the directors have placed in my hands, and recognize the commitment to the Bank's success as a whole, as well as to the success of the employees and their personal and professional realization."
Leumi President & CEO, Mr. Hanan Friedman:
"The results we present today clearly demonstrate that the Bank's strategy in the past few years has proven itself, and that Leumi is prepared, more than ever, to cope with the formidable changes and challenges facing the banking industry. The infrastructure we have built in recent years will allow us to continue implementing our successful strategy into 2020, while significantly boosting the adaptation of our service model to our customers' characteristics and needs - with an emphasis on responsible growth - and maintaining a high-quality credit portfolio. Responsible growth will be achieved, inter alia, by enhancing the use of smart models, which allow us to predetermine our customers' needs, across all business lines.
"Alongside continuing to invest in the digital domain and leveraging our data capabilities for core business growth, we will continue to implement new technological measures, including robotizing processes, for the sake of smart efficiency and enhanced operations.
"Lately, we became the first Israeli bank to raise Tier-2 subordinated notes from foreign investors. The unprecedented demands, in addition to the low spreads, reflect the exceptional trust of investors from around the globe in the Israeli economy and in Bank Leumi's robustness."
Leumi Group - Principal Data from the Financial Statements
Profit and Profitability (in NIS millions)
For the year ended December 31
Net interest income
Credit loss expenses
Operating and other expenses
Profit before taxes
Provision for taxes
Profit after taxes
The Bank's share in profits of companies included
Net income attributed to non-controlling interests
Net income attributed to the bank's shareholders
Return on equity (%)
Earnings per share (NIS)
Development of Balance Sheet Items (in NIS billions)
As at December 31
Change in %
Net Credit to the public (a)
Deposits by the public (a)
(a) Excluding the balances for Leumi Card, which were classified as held-for-sale assets and liabilities in 2018.
Principal Financial Ratios (%)
As at December 31
Net credit to the public to total assets (a)
Deposits by the public to total assets (b)
Total equity to risk assets
Total Tier 1 equity to risk assets
Liquidity coverage ratio
Expenses in respect of credit losses out of net credit to the public
Total operating and other expenses to total income (efficiency ratio)
a) Excluding the credit for Leumi Card (comparative results), which were classified as held-for-sale assets and liabilities in 2018.
b) Excluding deposits by Leumi Card (comparative results), which were classified as held-for-sale assets and liabilities in 2018.
The data in this press release has been converted into US dollars solely for convenience purposes, at the representative exchange
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).
It is recommended to connect to the link at least 10 minutes prior to the beginning of the call. An archived recording will be available on the Leumi website one business day after the call ends.
Conference Call Dial-in Details (no passcode required):
US & Canada
All other locations
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