International Bank concludes 2021 with a profit of NIS 1.4 billion - Twice the profit in 2020

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by Ifi Reporter Category:Financial Mar 6, 2022

The International Bank concludes 2021 with a profit of NIS 1.4 billion, a jump of almost twice that of the profit in 2020, which amounted to NIS 750 million. The return on capital amounts to 14.7% in 2021 compared to 8.6% in 2020.
The Bank's revenues amounted to NIS 3.15 billion in 2021, compared with NIS 2.9 billion in 2020. Net interest income amounted to NIS 2.8 billion, compared with NIS 2.6 billion. International's revenue from interest amounted to NIS 1.44 billion, compared with NIS 1.37 billion in 2020, an increase of 5.3%.
The fees charged by the bank last year amounted to NIS 1.45 billion, compared with NIS 1.38 billion in 2020. Most of the international's revenue comes from securities activity in the amount of NIS 760 million, compared with NIS 708 million in 2020.
It should be noted that the Bank of Israel and the Securities Authority are trying in a joint initiative to increase the transparency of commissions charged at banks in the field of securities activity at banks. This is with the aim of increasing the transfer of customers from the banks to the investment houses that provide the securities handling services at substantially lower yields.
The international housing loan portfolio increased by NIS 32.3 billion, an increase of 14% compared to NIS 28.3 billion at the end of 2020. The housing portfolio currently constitutes 32% of the Bank's credit portfolio and its annual growth rate is the second in the industry after Discount Bank.
In addition to growth in the mortgage and credit portfolio, income from credit losses also contributed to International's profit. International recorded revenues for credit losses amounting to NIS 216 million in 2021. This capital originated in capital that was seized in 2020 against the background of the outbreak of the corona and was recognized as a loss in that period and in the amount of NIS 464 million.
In the fourth quarter, revenues amounted to NIS 758 million, compared with NIS 718 million in the corresponding quarter last year, an increase of 5.5%. Net income amounted to NIS 333 million, compared with NIS 210 million in the corresponding quarter, an increase of 59%.
It should be noted that although this is a strong year for the international, both its revenues and profits in the fourth quarter were weaker than those in the second and third quarters of 2021. Revenues fell by 6% between the third and fourth quarters and net profit fell by 9%.
The bank also updates that it retired early 66 employees throughout 2021. The employee provision charged clearing expenses amounting to NIS 37 million in the report. As of the end of the year, the number of employees at the bank had dropped to 3,663, compared with 3,787 at the beginning of the year.

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