Results reflect high profitability while maintaining financial stability TEL AVIV, Israel, May 28, 2024 /PRNewswire/ -- First International Bank of Israel (TASE: FIBI) one of Israel's major banking groups, today announced its results for the first quarter ended March 31, 2024. Financial Highlights Net income of NIS 569 million in the first quarter of 2024 The Return on equity was 18.7% Deposits by the public increased by 2.9% compared to the end of 2023 and by 13.4% compared to the comparative period in the previous year The portfolio of customers' assets increased by 7.2% compared to the end of 2023 and by 23.4% compared to the first quarter of 2023, reaching approximately NIS 720 billion Equity attributed to shareholders of the Bank increased by 13.5% compared to the end of the first quarter of 2023 The tier 1 shareholders' equity was 11.78% and the liquidity cover ratio was 161% The Bank's Board of Directors decided to distribute a dividend, amounting to 40% of the net income for the quarter Financial Results of the First Quarter 2024 Net income for the First International Bank was NIS 569 million in the first quarter of 2024, an increase of 14% compared to the fourth quarter of 2023, and a decrease of 9.8 % compared to the first quarter of 2023. Return on equity was 18.7%. The income for the first quarter included a tax benefit of NIS 49 million in respect of prior years. Excluding the tax benefit, the return on equity amounted to 17.1%. Total revenue amounted to NIS 1,581 million in the first quarter of 2024, a decrease of 7% compared to the first quarter of last year. Financing income from operating activities amounted to NIS 1,164 million in the first quarter of 2024, compared to NIS 1,332 million in the first quarter of last year. The decrease was due, among other impacts, to the transition to depositing in interest-bearing accounts rather than non-interest bearing credit balances in current accounts, as well as changes in the consumer price index. Given the quality of the credit portfolio, as well as the building-up of provisions in recent quarters, total income from credit losses amounted to NIS 2 million in the first quarter of 2024, compared to expenses of NIS 72 million in the first quarter of 2023. The specific net income from credit losses amounted to NIS 6 million in the first three months of the year, compared to NIS 14 million in the first quarter of 2023. The collective expense for credit losses amounted to NIS 4 million in the first three months of the year, compared to NIS 86 million in the first quarter of the previous year. The decrease in the collective expense for credit losses compared to the comparative period last year was due to an improvement in existing and forecast macroeconomic indices during the first quarter of the current year. The ratio of high quality credit to non-performing loans (NPL) remained stable during the first quarter of 2024 and stood at 0.6%. The ratio indicates the quality of the credit portfolio (the balance of non-accrual loans or loans in arrears of 90 days or more) as a percentage of total credit to the public. The overall coverage ratio (the percentage of the total allowance for credit losses to the total amount of the credit to the public) stood at 1.53%. Operating and other expenses amounted to NIS 731 million in the first quarter of 2024, an increase of 1% compared to the first quarter of 2023. Salaries and related expenses decreased by 1.6% and amounted to NIS 442 million, with the decrease primarily due to a reduction in the provision for bonuses, which was, among other reasons, as a result of the signing of labor agreements for the year 2023 - 2026, in the first quarter of last year. The decrease was partially offset by an increase in current salaries. The efficiency ratio was 46.2% in the first quarter of 2024, compared to 43.5 % in the first quarter of 2023. The provision for taxes on income amounted to NIS 279 million in the first three months of the year, compared to NIS 315 million in the first three months of the previous year. The effective tax rate amounted to 32.7%, compared to 34.8% in the comparative period of last year, and was impacted by the tax benefit of NIS 49 million in respect of prior years, and an increase in the statutory tax rate. Credit to the public amounted to NIS 116,816 million, a decrease of 2% compared to the end of 2023, and of 2.5% compared the end of the first quarter of last year. The decrease compared to the end of 2023 was primarily due to a decrease in credit to large businesses, among others, in the capital markets sector. In other sectors, there were increases in credit recorded: credit to households: (1.4%), housing loans, small businesses and medium-sized businesses. Deposits by the public amounted to NIS 196,615 million, an increase of 2.9% compared to the end of 2023 and an increase of 13.4% compared to the end of the first quarter of last year. The total customer asset portfolio amounted to NIS 720 billion and grew by 7.2% compared to the end of 2023 and grew by 23.4% compared to the end of the first quarter of 2023. The equity attributed to the Bank's shareholders increased to NIS 12,355 million, an increase of 2.4% compared to the end of 2023 and of 13.5% compared to the end of the first quarter of the previous year. The tier 1 shareholders' equity ratio increased to 11.78%, above the required regulatory ratio level. The liquidity coverage ratio rose to 161%, compared to 156% at the end of 2023.  Taking into consideration the Supervisor of Banks' directives regarding Capital Planning and Profits Distribution Policies, the Bank's Board of Directors decided to approve the distribution of a cash dividend at a rate of 40% of equity. The Bank's Board of Directors will continue to implement the Bank's dividend distribution policy, monitoring ongoing developments and their impact on the Israeli economy and on the bank. Eli Cohen, CEO of First International Bank commented, "The State of Israel is going through a complex and ongoing crisis, which combines security-related, social, economic and diplomatic aspects. As a stable bank, First International Bank will continue to support and stand by its customers, assist them and innovate, providing relevant and innovative value-propositions." "First International Bank entered the crisis well-prepared, which has been apparent, among other aspects, due to its high capital and liquidity cushions that are among the highest in the Israeli banking system as well as a high-quality and diversified credit portfolio. All these are the result of the Bank's cautious and responsible policy, and focused risk management, as reflected in the Bank's results and achievements, as demonstrated in the results for the first quarter of 2024."       CONDENSED PRINCIPAL FINANCIAL INFORMATION AND PRINCIPAL EXECUTION INDICES Principal financial ratios For the three months ended March 31, For the yearended December 31, 2024 2023 2023 Percent Principal execution indices Return on equity attributed to shareholders of the Bank(1) 18.7 23.6 19.7 Return on average assets(1) 1.03 1.28 1.06 Ratio of equity capital tier 1 11.78 10.55 11.35 Leverage ratio 5.27 5.15 5.26 Liquidity coverage ratio 161 131 156 Net stable funding ratio 150 133 146 Ratio of total income to average assets(1) 2.9 3.5 3.2 Ratio of interest income, net to average assets (1) 2.0 2.6 2.4 Ratio of fees to average assets (1) 0.7 0.8 0.7 Efficiency ratio 46.2 42.6 43.5 Credit quality indices Ratio of provision for credit losses to credit to the public 1.38 1.06 1.36 Ratio of total provision for credit losses (2) to credit to the public 1.53 1.17 1.50 Ratio of non-accruing debts or in arrears of 90 days or more to credit to the public 0.60 0.47 0.60 Ratio of provision for credit losses to total non-accruing credit to the public 236.1 232.5 234.5 Ratio of net write-offs to average total credit to the public (1) (0.02) (0.04) 0.03 Ratio of expenses (income) for credit losses to average total credit to the public (1) (0.01) 0.25 0.42   Principal data from the statement of income For the three monthsended March 31, 2024 2023 NIS million Net profit attributed to shareholders of the Bank 569 631 Interest Income, net 1,115 1,275 Expenses (income) from credit losses (2) 72 Total non-Interest income 466 425    Of which:   Fees 365 388 Total operating and other expenses 731 724    Of which:   Salaries and related expenses 442 449 Primary net profit per share of NIS 0.05 par value ...