The International Bank reports a profit of NIS 342 million in the second quarter

The International Bank reports a profit of NIS 342 million in the second quarter of this year and a return on capital of 13.8%. This is a 15% decrease from profits of NIS 404 million in the corresponding quarter last year, the bank attributes the decrease to the exceptional second quarter last year in which abnormal income from credit losses was recorded against the background of the exit from the Corona crisis.

In the first half of the year, the bank's profit amounted to NIS 664 million, compared to NIS 708 million in the corresponding half last year, and the return on capital reached 13.3%.
Interest income increased in the second quarter by 21% compared to the corresponding period last year, and thus the financing profit from current activity increased by 24% compared to the corresponding quarter. Fee income increased by 6% compared to the corresponding quarter last year due to an increase in the bank's activity.
Internationally recorded expenses for credit losses totaled NIS 31 million in the second quarter of this year compared to income of NIS 128 million in the corresponding quarter last year, an increase of NIS 159 million. The bank explains the transition from income for credit losses to expenses, due to the fact that last year unusual income for credit losses totaling NIS 114 million was recorded, which resulted from a decrease in the group provision explained by the improvement in economic indicators after the corona crisis, also the volume of problematic credit decreased by 21% compared to the corresponding period last year and by 15% compared to the end of 2021.
Credit to the public increased by 18.3% in the past year, compared to the same period last year, and increased by 11.4% since the beginning of the year and amounted to NIS 114 billion. The growth in credit is characterized in all areas of activity - the large business sector grew in the last year by about 39%, the medium business sector grew by 33.4%, the small business sector by 13.8%, credit to households by 6.6% and housing loans grew by 15%. In the second quarter of this year, credit to the public grew by 6.1%. Public deposits increased by 6.8% in the second quarter of the year compared to the first quarter and amounted to NIS 164 billion. Since the beginning of the year, public deposits have increased by 7.2%.
The efficiency ratio was 54.8% in the second quarter compared to 57.5% in the corresponding period last year. The bank continues the streamlining processes that include, among other things, streamlining and automating the work processes, digital innovation and advanced use of data. All of these allow for a consistent and gradual improvement in the efficiency ratio.
Operating and other expenses in the second quarter of the year amounted to NIS 662 million, a decrease of 3.2% compared to the first quarter of the year, and an increase of 1.5% compared to the corresponding quarter last year. The capital attributed to the bank's shareholders reached NIS 9.7 billion.