Leumi Card deal

With the help of the , Bank Leumi concluded the quarter with a profit of over NIS 1 billion

After neutralizing the profit from credit card operations Leumi Card, the Bank presents a return on equity of 10.1% in the first quarter of 2019, compared with 8.6% in the corresponding quarter of 2018. • The Bank also enjoys a loan of NIS 437 million, Shares worth NIS 700 million

National Bank

(2,468 + 0.57%)

, Which is managed by Rakefet Russak Aminoach, presents a handsome quarterly profit of more than NIS 1 billion, which includes a substantial contribution of more than NIS 200 million in the sale of Leumi Card to Loreburg Pincus, in addition to a substantial contribution from Ricubari in a series of loans extended by the Bank to large businesses, A second plan for the self-purchase of its shares, which will lead to a purchase of shares worth NIS 1.4 billion in less than two years.

Bank Leumi (TASE: POLI) announced Monday that it had completed the first quarter of 2019 with a net profit of NIS 1.09 billion, a sharp increase of 50% compared to the corresponding quarter last year. As noted, the Bank’s profit was strongly influenced by one-time profits. First and foremost, this is a profit from the sale of the bank’s holdings (80%) in the credit card company Leumi Card, which generated pre-tax profit of NIS 314 million before tax, after which it contributed NIS 200 million to the bank.

In addition, the improvement in profit is also due to the fact that while in the corresponding quarter, as is usually the case, the Bank presented expenses in respect of credit losses of NIS 130 million, in the first quarter of 2019 it actually recorded a profit of 18 million in a series of loans for which the debt was written off in the past. In other words, this is a gap of NIS 150 million on the one hand, on a quarterly basis. Thus, the Bank presents an impressive return on capital of 12.7%, at an annualized rate, compared with a return on equity of 9% in the corresponding quarter of last year and 9.5% in 2018. Even excluding Leumi Card in the two quarters, the return on equity improved And stood at 10.1% in the first quarter of this year, compared with 8.6% in the corresponding quarter last year.

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