Reflects continued growth and high profitability while maintaining financial stability TEL AVIV, Israel, Aug. 15, 2024 /PRNewswire/ -- First International Bank of Israel (TASE: FIBI) one of Israel's major banking groups, today announced its results for the second quarter and first half of 2024, ended June 30, 2024. Financial Highlights Second quarter of 2024 net income of  NIS 609 million and return on equity of 19.6% First half 2024 net income of NIS 1,178 million and return on equity of 19.2% Credit to the public increased 4.5% compared to end of the first quarter of 2024 and 2.4% compared to 2023-end First half 2024 income from credit losses of approximately NIS 73 million, compared to expenses of NIS 171 million in the first half of 2023 with approximately half of the income from collections from previously written-off customer debt Deposit to the public increased by 3.8% compared to the first quarter of 2024, and by 6.8% compared to the 2023-end. The portfolio of customers' assets increased 4.8% compared to the first quarter of 2024, and by 12.4% compared to the 2023-end, to approximately NIS 755 billion. Equity attributed to shareholders of the Bank increased by 11.7% to NIS 12.6 billion,  compared to the end of the first half of 2023 Tier 1 capital ratio was 11.34% 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 Second Quarter 2024 Net income for the First International Bank Group was NIS 609 million in the second quarter of 2024, an increase of 3.7 % compared to the second quarter last year and an increase/decrease of 7 % compared to the prior quarter. The return on equity was 19.6%. The net income for the first half of the year was NIS 1,178 million and the return on equity was 19.2%. Revenues were NIS 3,220 million in the first half of the year, compared to NIS 3,435 million in the first half of last year. The financing income from operating activities amounted to NIS 2,435 million in the first half of the year, compared to NIS 2,682 million in the first half of last year, a decrease of 9.2%. The decrease was due, among other factors, by customers shifting funds into interest-bearing accounts, rather than maintaining non-interest-bearing current account balances. Income from credit losses amounted to NIS 73 million in the first half of the year, compared with expenses of NIS 171 million in the first half of last year. Approximately NIS 40 million of the income was due to income from specific customers from the collection of debts that had been previously written off in the financial accounts, with the balance due to a decrease in the collective provision for credit losses. In the second quarter of 2024, the income from credit losses amounted to NIS 71 million compared with expenses of NIS 99 million in the prior quarter. The high-quality credit to non-performing loans ratio (NPL) was stable and was 0.59% at the end of the second quarter. The ratio indicates the quality of the credit portfolio (the balance of the non-accrual loans or those that are in arrears of 90 days or more) as a percentage of total credit to the public. The total coverage ratio (the percentage of the total allowance for credit losses to the total amount of the credit to the public) was 1.44%, compared to 1.23% as of the end of the first half of last year. Operating and other expenses were stable at NIS 1,463 million in the first half of the year, compared to NIS 1,464 million in the first half of last year. The efficiency ratio was 45.4%. Credit to the public was approximately NIS 122 billion, an increase of 2.4% compared to the 2023-end and an increase of 4.5% compared to the end of the first quarter of 2024. Deposits by the public were approximately NIS 204.1 billion, an increase of 6.8% compared to the 2023-end and an increase of 3.8% compared to the end of the first quarter of 2024. The total customers' assets portfolio increased by 4.8% compared to the first quarter of 2024 and by 12.4% compared to the 2023-end, amounting to approximately NIS 755 billion. Equity attributed to the Bank's shareholders increased to approximately NIS 12.6 billion, an increase of 4.5% compared to the 2023-end and increase by 11.7% compared to the end of the first half of last year. The tier 1 capital ratio was 11.34%, which is approximately 23% above the regulatory equity requirement. The liquidity coverage ratio was high and stood at 172%. Taking into consideration the Supervisor of the Bank's directives with regard to capital planning and profit distribution policies, the Board of Directors decided to approve the distribution of a cash dividend to the shareholders at a rate of 40% of net income. The Board of Directors will continue to discuss the implementation of the Bank's dividend distribution policy, in light of the developments and their impact on the economy and on the Bank. Management Comment Eli Cohen, CEO of First International Bank, commented, "We continued to focus on growth across all types of activities and our results reflect this, both in terms of credit balances and in the volume of the customers' assets, which have grown in all segments. The growth in credit is being carried out while maintaining qualitative and professional underwriting and an appropriate level of risk. The overall value of our customers' balances has increased by more than 23% in the past year, reflecting the trust that our customers place in our stability and us. "We at the First International Bank have a strategy of providing added value to customers through our unique value propositions, our new and innovative products, as well as our professional advice across all core activities and sectors. The State of Israel has been going through a challenging period of warfare on multiple fronts for over 10 months, which is having significant and complex economic implications.  At the First International Bank, we hold the Otzar HaChayal brand, providing banking for the security forces, offering them the best banking value proposition. We are continuing to assist those customers who have been impacted directly by the security situation, including reserve soldiers, evacuees and others. Support includes waiving charges and interest on overdrafts, deferring repayments on loans and mortgages, offering interest-free loans to reservists and career soldiers, providing assistance funding to small businesses, and more. The First International Bank looks forward to the safe return of all the hostages, as well as the safe return home of the IDF soldiers and all the evacuees."   CONDENSED PRINCIPAL FINANCIAL INFORMATION AND PRINCIPAL EXECUTION INDICES Principal financial ratios For the six months ended June 30, For the year ended December 31, 2024 2023 2023 in % Principal execution indices Return on equity attributed to shareholders of the Bank(1) 19.2 22.6 19.7 Return on average assets(1) 1.05 1.22 1.06 Ratio of equity capital tier 1 11.34 10.64 11.35 Leverage ratio 5.20 5.20 5.26 Liquidity coverage ratio 172 134 156 Net stable funding ratio 149 134 146 Ratio of total income to average assets (1) 2.9 3.4 3.2 Ratio of interest income, net to average assets (1) 2.1 2.6 2.4 Ratio of fees to average assets (1) 0.6 0.8 0.7 Efficiency ratio 45.4 42.6 43.5 Credit quality indices Ratio of provision for credit losses to credit to the public 1.32 1.12 1.36 Ratio of total provision for credit losses (2) to credit to the public 1.44 1.23 1.50 Ratio of non-accruing debts or in arrears of 90 days or more to credit to the public 0.59 0.49 0.60 Ratio of provision for credit losses to total non-accruing credit to the public 230.4 237.9 234.5 Ratio of net write-offs to average total credit to the public (1) (0.08) - 0.03 Ratio of expenses (income) for credit losses to average total credit to the public (1) (0.12) 0.29 0.42   Principal data from the statement of income For the six months ended June 30, 2024 2023 NIS million Net profit attributed to shareholders of the Bank 1,178 1,218 Interest Income, net 2,336 2,593 Expenses (income) from credit losses (73) 171 Total non-Interest income 884 842   Of which:               Fees 727 756 Total operating and other expenses 1,463 1,464   Of which:               Salaries and related expenses 872 915 Primary net profit per share of NIS 0.05 par value (NIS) 11.74 12.14   Principal data from the balance sheet 30.6.24 30.6.23 31.12.23 NIS million Total assets 232,809 208,130 221,593 of which:   Cash and deposits with banks 77,663 58,553 68,866                  Securities 27,237 22,963 26,985                  Credit to the public, net 120,436 118,686 117,622 Total liabilities 219,604 196,313 208,947 of which:   Deposits from the public 204,069 179,013 191,125                  Deposits from banks 2,735 4,145 4,314                  Bonds and subordinated capital notes 4,689 4,713 4,767 Capital attributed to the shareholders of the Bank 12,615 11,292 12,071   Additional data 30.6.24 30.6.23 31.12.23 Share price (0.01 NIS) 14,410 14,420 14,990 Dividend per share (0.01 NIS) 495 486 795 (1)  Annualized.(2)  Including provision in respect of off-balance sheet credit instruments.     CONSOLIDATED STATEMENT OF INCOME (NIS million)