Israel's Mizrahi-Tefahot Bank profit misses estimates

Mon Nov 26, 2012 6:07am EST

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* Q3 net profit 260 mln shekels vs 284 mln forecast

* Tier 1 capital ratio 8.23 pct vs 7.7 pct in Q3 2011

JERUSALEM Nov 26 (Reuters) - Mizrahi-Tefahot, Israel's fourth-largest bank, reported a 2 percent rise in quarterly net profit as financing income rose and charges for credit losses fell.

Mizrahi, the first of Israel's top banks to report quarterly earnings, said on Monday fourth-quarter net profit rose to 260 million shekels ($67 million) from 255 million a year earlier and expectations in a Reuters poll of 284 million.

Net interest income rose to 900 million shekels from 891 million a year earlier and the charge for credit losses slipped to 116 million shekels from 142 million.

Mizrahi is Israel's largest mortgage lender with a market share of 34.1 percent.

Its ratio of Tier I capital to risk elements grew to 8.23 percent from 7.7 percent a year earlier.

"This is in line with the bank's intention to bring forward compliance with the regulatory requirement of 9.0 percent core capital ratio to early 2014," said Eli Yones, Mizrahi's chief executive.

In July, the bank said it would take steps to meet new capital rules by 2014, a year earlier than required, as part of a new five-year plan.

Separately, Mizrahi named Moshe Vidman as its new chairman effective Dec. 1 after Jacob Perry resigned last month to enter politics.

Israel's three largest banks will report quarterly earnings on Thursday. (Reporting by Steven Scheer)

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