Bethel Finance: Discount Bank profit higher on lower revenue

www.bethelfinance.com
Israel Discount Bank (TASE: DSCT) reported double-digit profit growth on lower revenue for 2011.

Net profit attributable to majority shareholders rose 21% to NIS 852 million (NIS 0.81 per share) in 2011 from NIS 704 million in 2010. The bank's return on equity rose to 8.2% in 2011 from 7% in 2010. The core capital adequacy ratio rose to 8.1% at the end of 2011 from 7.7% a year earlier.

Income from financing operations before provision for credit losses fell 0.9% to NIS 4.78 billion in 2011 from NIS 4.83 billion in 2010, and the provision for credit loss fell 5.2% to NIS 778 million from NIS 821 million.

Fourth quarter net profit rose 69.5% to NIS 222 million from NIS 131 million for the corresponding quarter of 2010, and its return on equity rose to 8.7% from 5.1%. Income from financing operations before provision for credit losses fell 11.8% to NIS 1.14 billion for the fourth quarter from NIS 1.29 billion for the corresponding quarter, and the expense for credit loss fell 8% to NIS 252 million from NIS 274 million.

Discount Bank's deposits from the public rose 11% to NIS 153.4 billion at the end of 2011 from NIS 138 billion a year earlier, but credit to the public fell 2% to NIS 116.4 billion from NIS 118.7 billion.

Discount Bank CEO Reuven Spiegel's salary cost was NIS 7.75 million in 2010, including a salary of NIS 2.23 million, and a bonus of NIS 1.88 million.

Spiegel and chairman Yossi Bachar said in a statement, "2011 was a challenging year for companies in the Israeli economy. Discount Bank's results and achievements for 2011 particularly stand out given the economic climate and market uncertainty."

Discount Bank's share price fell 2.7% in morning trading to NIS 5.20, giving a market cap of NIS 5.6 billion.