TEL AVIV May 22 First International Bank of
Israel (FIBI), the country's fifth-largest bank,
reported a drop in quarterly profit on Thursday, weighed down by
low interest rates.
FIBI posted first-quarter net profit of 120 million shekels
($34.4 million) compared with 136 million a year earlier.
Net interest and non-interest financing income fell 6.8
percent to 578 million shekels while the bank recorded a credit
loss expense of 10 million shekels compared with 32 million a
"The low interest environment, the negative CPI and
accounting effects have temporarily offset the impact of the
growth in volumes of activity," said Smadar Barber-Tsadik, the
FIBI's core Tier 1 ratio fell to 9.73 percent according to
Basel III from 10.11 percent at the end of 2013 after the bank
paid a dividend of 230 million shekels.
($1 = 3.4928 Israeli Shekels)
(Reporting by Tova Cohen)