TEL AVIV, May 8 (Reuters) - Mizrahi-Tefahot, Israel’s third-largest bank, reported on Tuesday a 7 percent rise in quarterly net profit, boosted by higher financing income, and raised its dividend payment to 40 percent of net profit.
Mizrahi earned 343 million shekels ($95.1 million) in the first quarter, up from 321 million a year earlier. Financing income before expenses for credit loss expenses rose to 1.17 billion shekels from 1.03 billion, while the credit loss provision climbed to 82 million shekels from 49 million.
For the quarter, the bank will distribute a dividend of 137.2 million shekels, or 40 percent of net profit. As announced in February, the bank said it would raise its dividend to 40 percent of net profit from 30 percent starting in the first quarter.
The bank’s Tier I capital ratio, a key measure of its financial strength, rose to 10.16 percent at the end of March from 10.12 percent a year earlier. ($1 = 3.6086 shekels) (Reporting by Tova Cohen Editing by Steven Scheer)