Mizrahi Tefahot Bank ended 2020 with a net profit of NIS 1.5 billion - a decrease of 16.2%

Mizrahi Tefahot Bank ended 2020 with a net profit of NIS 1.5 billion - a decrease of 16.2% compared to 2019.
If the profit generated as a result of the merger with Union Bank is included, the net profit amounted to NIS 1.6 billion, a figure that reflects a return on capital of 9.5%. Mizrahi's results were affected by an increase in expenses for credit losses, which amounted to NIS 1 billion in 2020, compared with NIS 364 million in 2019.
Credit to the public amounted to NIS 221 billion - an increase of 7.9% compared to 2019. The public deposit portfolio increased by 17%, to NIS 247 billion at the end of 2020. All this, without the effects of Union Bank. The mortgage sector is the core activity of the Bank. The bank emphasizes that now less than 2% of the cumulative mortgage portfolio is still in full deferral of payments, which is expected to end by June 2021.
As of the end of January 2021, 93% of mortgage borrowers who received deferred payments - NIS 45.6 billion - have already returned to pay. 13% of those who have returned to pay do so on the path of reduced refunds.
Also in commercial credit, out of the total deferrals approved during the year of NIS 7.7 billion, the total credit deferred as of the end of January 2021 decreased to NIS 1.3 billion. The Bank further notes that as of the end of February, their share in providing credit to businesses under state-guaranteed funds was 23%.
Moshe Larry, CEO of the Bank, said following the publication of the reports: "The financial results for 2020 reflect the continued growth momentum of the Bank in a variety of areas, along with the consequences of the corona crisis, especially the significant increase in credit losses, and the effect of the interest rate environment The bank's success, even in such a complex and challenging year, to present an annual profit of NIS 1,610 million, which reflects a return on capital of 9.5%, is not self-evident, and was achieved thanks to the extraordinary effort and commitment of our thousands of dedicated employees and managers. "
Larry added that "in line with the main objective of the strategic plan, the Bank continues to increase its business focus and grow rapidly in credit directed to various businesses. In 2020, the increase in the business credit portfolio, excluding Union Bank, amounted to 14.3% compared to the previous year." Tefahot on the leaders in the field of housing loans also in 2020, when a record of about 79 billion in mortgage performance in the economy was recorded. "