Discount Bank's net profit in 2021 amounted to amounted to NIS 2.77 billion - an increase of 184.4%

Discount Bank's net profit in the fourth quarter of the year amounted to NIS 529 million, compared with NIS 264 million in the fourth quarter of 2020, in fact a doubling of profit. In 2021 as a whole, net profit amounted to NIS 2.77 billion, compared to NIS 975 million in 2020, an increase of 184.4%.
The return on equity reached a rate of 10.2% in the fourth quarter of 2021, compared with 5.6% in the corresponding quarter last year. In 2021, the return on equity reached 13.6% compared to 5.1% in 2020.
The bank says that the reduction in credit loss expenses in 2021 was very unusual. And while the rate of credit write-offs from the portfolio averaged 0.37% between 2016 and 2019, in the past year the write-off rate was almost non-existent.
Net credit to the public amounted to NIS 213 billion, compared with NIS 189 billion at the end of 2020, an increase of 12.9%. The increase reflects the growth in the targets set in the updated strategic plan: compared to the end of 2020, credit for medium-sized businesses increased by 14.8% and credit for housing (mortgages) increased by 26.5%.
Net interest income in the fourth quarter of 2021 amounted to NIS 1.7 billion, compared with NIS 1.5 billion in the corresponding quarter last year, an increase of 11.9%. In 2021, net interest income amounted to NIS 6.5 billion, an increase of 10.7% compared to 2020.
Non-interest income in the fourth quarter of 2021 amounted to NIS 1 billion, an increase of 14.1% compared to the corresponding quarter last year. In 2021, there was a decrease in non-interest income of NIS 45 million and at a rate of 1.1%, mainly due to a decrease in non-interest financing income. Commission income in the fourth quarter of 2021 amounted to NIS 809 million, an increase of 9.5%, compared with the corresponding quarter last year. In 2021, commission income amounted to NIS 3.1 billion, an increase of 10.6%, compared to 2020.
At the same time, the bank announced its strategic target for 2025 and sets a return on equity target of no less than 12.5%, a net profit of NIS 3.5 billion and an efficiency ratio of less than 55% (compared with about 75% today).
Shaul Kobrinsky, Chairman of the Discount Board of Directors: "The Discount Group is today publishing impressive results that reflect its strength and power. This year we continued to work to implement the multi-year strategic plan and implemented a number of important moves. In 2022, too, we will continue to work resolutely to realize the challenging goals we have set for ourselves and to implement significant moves that will support the acceleration of the group's growth. "
Uri Levin, CEO of the Discount Group: “Discount's record results in 2021 reflect the proven ability of the Group and its employees to lead exceptional changes in the banking system, while focusing on the customer and creating real competition. The group's impressive performance in recent years gives us full confidence in our ability to further accelerate the growth rate and meet the ambitious targets for 2025, which we present today. "