Discount Bank published its first quarter reports: Net profit rose to NIS 983 million

Discount Bank published its first quarter reports for the year. Net profit rose to NIS 983 million, compared with NIS 662 million in the corresponding quarter - an increase of 48.5%, but excluding the sale of two Discount properties on Herzl Street in Tel Aviv, net profit amounted to NIS 668 million. The bank will distribute a dividend of 20% of the first quarter's profits in the amount of NIS 197 million.
Net credit to the public amounted to NIS 217,851 million at the end of the first quarter of 2022, compared with NIS 213,156 million at the end of 2021, an increase of 2.2% from the beginning of the year and an increase of 12.7% compared to the end of the corresponding quarter last year. Housing credit has risen by 5.2% since the beginning of the year and by 28% compared with the corresponding quarter last year. Credit to medium-sized businesses has increased by 12.9% since the beginning of the year and by 26.9% compared to the corresponding quarter last year. Credit to large businesses has decreased by 3.7% since the beginning of the year and increased by 4.3% compared to the corresponding quarter last year.
The increase in credit to medium-sized businesses is due in part to an increase of NIS 993 million in respect of customers who, as of December 31, 2021, were classified in the large business sector and during the first quarter were classified in the medium-sized business sector. Excluding this change, credit to medium-sized businesses increased by 6.2% from the beginning of the year and by 19.4% compared to the corresponding quarter last year, and credit to large businesses decreased by 1.7% from the beginning of the year and increased by 6.5% compared to the corresponding quarter last year.
Discount's total assets reached NIS 340,658 million at the end of the first quarter of 2022, an increase of 1.7% compared to total assets at the end of 2021.
The impressive growth of the banks comes in the quarter in which the economy actually experienced negative growth, even before the interest rate hikes, which are expected, as always, to increase the profits of banks that know how to take advantage of the Bank of Israel's base interest rate hike. The interest rate hikes, the second in Israel, are expected this afternoon (Monday) (and will take effect on Thursday), and will be reflected in reports for the second quarter of the year.