Discount bank wrapped up 2023 on a positive note: Net profit totaling 4.2 billion shekels

Discount Bank, despite navigating through challenging times, wrapped up 2023 on a positive note, with a net profit for shareholders totaling 4.2 billion shekels, marking a notable 20% increase from the previous year's figure of 3.5 billion shekels.

However, in the fourth quarter, there was a slight dip in net profit, amounting to NIS 919 million compared to NIS 939 million in the same period of 2022, reflecting a decrease of 2.1%.

In response to the ongoing war situation in Israel and at the urging of banking supervisor Danny Khahiashvili, Discount Bank, represented by its ticker -0.92% 1822, will distribute a dividend equal to 20% of the profit in the fourth quarter, totaling approximately NIS 184 million. This decision is a departure from the usual practice of distributing a 40% dividend during such times of uncertainty.

The rate of return on capital saw a healthy uptick, reaching 15.7% in 2023 compared to 15.1% in the previous year.

Notably, the bank faced increased expenses for credit losses, amounting to NIS 1.5 billion compared to NIS 407 million in 2022. This surge is primarily attributed to the ramifications of the war, with the group provision tallying up to NIS 1.2 billion. The expense ratio for credit losses stood at 0.59%.

Despite these challenges, Discount Bank remains resilient and poised for continued growth and stability in the face of adversity.