Bethel Finance: Discount Bank profit halved to NIS 121m

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Bethel Finance news:

Israel Discount Bank's (TASE: DSCT) net profit for the third quarter of 2011 was halved on lower revenue. Net profit fell 57.4% to NIS 121 million from NIS 284 million for the corresponding quarter of 2010, and the return on equity fell to 4.7% from 11.6%.

Capital adequacy ratio rose to 13.3% at the end of September from 12.5% a year earlier, and the core tier-1 capital adequacy ratio rose to 7.6% from 7.1%.

Income from financing activities before provision for credit losses fell 19.8% to NIS 1.07 billion for the third quarter from NIS 1.33 billion for the corresponding quarter, while the provision for credit losses rose 33.7% to NIS 226 million from NIS 169 million. Operating and other income rose 9% to NIS 718 million for the third quarter from NIS 659 million for the corresponding quarter, but operating and other expenses, including salaries, rose 12% to NIS 1.48 billion from NIS 1.32 billion.

Discount Bank's total assets rose 7.2% to NIS 199 billion at the end of September from NIS 185.6 billion at the end of 2010. Net credit to the public declined by 0.1% to NIS 118.5 billion from NIS 118.7 billion, but deposits from the public rose 8.1% to NIS 149.2 billion from NIS 138 billion.

Discount Bank's share price rose 0.2% in morning trading to NIS 5.13, giving a market cap of NIS 5.4 billion.