Bethel Finance: First Int'l Bank profit down 80% to NIS 21m

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Bethel Finance news:

First International Bank of Israel (TASE: FTIN) reported an 80% drop in net profit on lower revenue for the third quarter of 2011. Net profit fell to NIS 21 million from NIS 129 million (NIS 01.8 per share) for the corresponding quarter, and the return on equity fell to 1.5% from 8.6%.

The capital adequacy ratio rose to 12.7% at the end of September from 12.4% a year earlier, and the core tier-I capital adequacy ratio rose to 8.2% from 8.05%.

Income from financing operations fell 14.7% to NIS 465 million for the third quarter from NIS 545 million for the corresponding quarter, while the provision for capital losses nearly doubled to NIS 59 million from NIS 30 million. The bank attributed the decline to lower fair value assessments on derivatives.

Operating and other income fell 27% to NIS 263 million for the third quarter from NIS 358 million for the corresponding quarter, while operating and other expenses, including salaries, was barely changed at NIS 651 million. The bank attributed the drop in operating income to a NIS 99 million provision for lower values of shares in held companies.

Total assets rose to NIS 98.47 billion at the end of September from NIS 97.26 billion a year earlier. Credit to the public rose 3.6% to NIS 64.08 billion from NIS 61.85 billion, and deposits from the public rose 0.6% to NIS 78.87 billion from NIS 78.42 billion.

First International Bank CEO Smadar Barber-Tsadik said, “Results for the third quarter were affected by the crisis in the capital markets in Israel and abroad, which led to a large drop in profitability. The pattern of growth and increased efficiency in core banking activity has been maintained. Particularly notable is the expansion in the group's retail activity, both at the bank itself and at the subsidiaries."

First International Bank's share price rose 1.4% in morning trading to NIS 35.49, giving a market cap of NIS 3.5 billion.