Discount Bank Reports Strong Q2 2024 Financial Results with NIS 1.04 Billion Net Profit

Discount Bank has released its financial statements for the second quarter of 2024, reporting a robust net profit of NIS 1.04 billion. The return on equity for Israel’s fourth-largest bank reached an impressive 14.1%, and from its domestic banking operations, it soared to 17.6%. The bank's efficiency ratio continued its positive trend, improving for the second consecutive quarter to 51.3%.

The bank also reported a 2.5% growth in the volume of credit extended to the public. However, expenses related to credit losses amounted to NIS 258 million. Key financial ratios for the bank include an equity ratio of 10.67% and a liquidity coverage ratio of 132.6%.

In light of these strong results, Discount Bank’s board of directors approved a dividend distribution at a rate of 30% of net profit, amounting to NIS 313 million. This distribution comes in the context of the ongoing Iron Swords War, during which the bank’s support to customers and the community is estimated to have cost NIS 361 million. The Bank of Israel has capped dividend distributions at 40% during the conflict.

Additionally, the American investment fund Gallatin Point Capital has agreed to invest $150 million in Discount New York, acquiring approximately 15% of the bank’s shares. This investment is part of Discount Bank’s broader strategy to bolster its international presence.

In another strategic move, Discount Bank signed an agreement to purchase Shufercell’s share in Paybox, aiming to develop it into a significant non-banking arm of the group.

Meanwhile, Bank Mizrahi-Tefahot also released its financial statements for the second quarter of 2024, reporting a net profit of NIS 1.4 billion, marking a 3.9% increase compared to the same period last year. The bank achieved a return on equity of 19.9% and announced a dividend distribution of 40%, totaling NIS 580.8 million.

These results highlight the resilience and strategic growth of Israel's leading banks, despite the challenging economic environment.