Israel Discount Bank profit jumps on fee income

Thu Nov 29, 2012 2:53am EST

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* Q3 net profit 221 mln shekels vs 202 mln forecast

* Net interest income slips, credit loss charges rise

JERUSALEM Nov 29 (Reuters) - Israel Discount Bank , Israel's third-largest bank, reported an 82.6 percent jump in quarterly net profit that topped analysts' expectations, boosted by higher credit card and other fees.

Discount on Thursday said it earned 221 million shekels ($58 million) in the third quarter, up from 121 million a year earlier.

The bank cited a 35.9 percent jump in non-interest income to 855 million shekels, which includes credit card and other fees as well as capital market commissions.

It was forecast to have made a quarterly profit of 202 million shekels, according to a Reuters poll.

Its bottom line gain was offset by a 0.8 percent dip in net interest income to 1.14 billion shekels and a 3.1 percent rise in expenses for credit losses to 233 million.

Analysts on average had forecast net interest income of 1.16 billion shekels and credit loss provisions of 170 million.

Discount's core Tier 1 ratio of capital to risk assets rose to 8.4 percent from 8.1 percent at the end of 2011.

($1 = 3.84 shekels) (Reporting by Steven Scheer)

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