The FINANCIAL — The Leumi Mortgage Bank Board of Directors on February 13 has confirmed the bank's 2007 financial statements.
The statements indicate that the bank’s net earnings for 2007 were NIS219 million, compared with NIS50 million during 2006, an increase of 342.3%. The net earnings return on equity for 2007 was 11.6%, compared with 2.9% in 2006.
During Q4/07, net earnings were NIS28 million, compared with NIS4 million during the corresponding previous quarter, an increase of 629%.
The sharp increase in the bank's earnings and profitability during 2007 is explained principally by an increase in net interest income, a reduction in the provision for doubtful debts and a tax arrangement with the tax authorities concluded in 2007, which increased net earnings by NIS38 million.
In 31/12/07, public credit, which represents the bank's main operation, amounted to NIS35.8 billion, compared with NIS53 billion at the end of 2006, an increase of 8.3%. During 2007, the bank extended new loans worth approx. 7.3 billion, compared with approx. 5.3 billion during 2006 (not including refinancing), an increase of approx. 38.9%, which is 4% higher than the total growth rates of the system.
Leumi Mortgage Bank CEO, Mr. Yuval Gavish said today that the bank’s impressive growth rates indicate the success of the services procedure that the bank adopted over the past year. “While the mortgage market is price based, Leumi Mortgage Bank’s performances indicate that the mortgage taking public is looking for a bank that knows how to combine economic attractiveness with the highest level of professional services. The new products that we introduced and the facilitating procedures (for example the "No Run Around" service, through which the required documents are delivered to the Mortgage Registry and to the seller's attorney) are the features that resulted in an increased market share, increased customer satisfaction and the sharp growth in the bank's business performances, “ Gavish said.
Additional Details in the Statements
During 2007, the provision for doubtful debts was 43 million, compared with 191 million during 2006, a decrease of approx. 77.5%.
During 2007, net interest earnings before the provision for doubtful debts, were 456 million, compared with 381 million during 2006, an increase of 19.7%.
During 2007, net interest income, after the provision for doubtful debts, was 413 million, compared with 190 million during 2006, an increase of approx. 117.5%.
Pretax earnings from banking operations were NIS299 million compared with 107 million during 2006, an increase of approx. 180.2%.
On 31.12.07, the bank’s balance sheet amounted to 36,032 million, compared with 33,293 million on 31.12.06, an increase of 8.2%.
On 31.12.07, the capital adequacy ratio reached a level of 9.96%, compared with 9.69% at the end of 2006.
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