First International Bank of Israel Reports Financial Results for the Fourth Quarter and Full Year of 2024

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Reflects continued growth and strong profitability while maintaining financial stability

TEL AVIV, Israel, March 12, 2025 /PRNewswire/ — First International Bank of Israel (TASE: FIBI) one of Israel’s major banking groups, today announced its results for the fourth quarter of the year.

Financial Highlights

Net income of NIS 2,371  million in the year 2024; Return on equity 19%;
Net income of NIS 573 million in the fourth quarter of 2024; Return on equity 17.4%
Net credit to the public grew by 10% in 2024 and by 3.7% in the fourth quarter;
Deposits from the public grew by 12.4% in 2024 and by 0.9% in the fourth quarter;
Customers’ assets grew by 25% in 2024 and by 5% in the fourth quarter, and reached NIS 839 billion;
Equity attributed to the Bank’s shareholders amounted to NIS 13.4 billion; an increase of 11.3% compared to the end of 2023; Tier 1 shareholders’ equity ratio of 11.31%;
The Bank’s Board of Directors decided on the distribution of a dividend amounting to NIS 228 million, representing a return of 40% of the net income;

Financial Results of the Fourth Quarter and Full Year 2024

The First International Group’s net income amounted to NIS 2,371 million in 2024, an increase of 9.2% compared with that of the previous year. The return on equity reached 19%.

In the fourth quarter of the year, the net income amounted to NIS 573 million, an increase of 14.8% over that of the previous year. The return on equity was 17.4%.

Credit to the public, net, amounted to NIS 129.4 billion, an increase of 10% in 2024 and an increase of 3.7% in the fourth quarter.

Deposits from the public amounted to NIS 214.8 billion, an increase of 12.4% in 2024 and 0.9% in the fourth quarter. The customers’ assets portfolio increased by 25% in comparison with that of the previous year and by 5% in the fourth quarter of 2024, and amounted to NIS 839 billion.

Equity attributed to the Bank’s shareholders increased to NIS 13.4 billion, an increase of 11.3% by comparison with the end of 2023. The tier 1 shareholders’ equity ratio increased to 11.31%, 2.1 percentage points above the required regulatory amount. The liquidity coverage ratio remained high and stood at 165%.

Considering the directives of the Supervisor of Banks regarding Capital Planning and Profits Distribution Policy, the Bank’s Board of Directors approved the distribution of a cash dividend to shareholders amounting to NIS 228 million, representing 40% of net income. The Board of Directors will continue to consider the implementation of the Bank’s dividend distribution policy, according to which the bank will distribute up to 50% of its net profit each year, in light of ongoing developments and impacts on the economy and the Bank.

Income for credit losses amounted to NIS 16 million in 2024, compared with expenses of NIS 502 million in 2023. The expenses for credit losses were NIS 35 million in the fourth quarter of the year, of which the collective expense was NIS 41 million. The percentage of the expense to the average balance of credit to the public was 0.11%.

In terms of the qualitative credit portfolio, the non-performing loan (NPL) ratio (the balance of non-accrual debts or debts that are in arrears of 90 days or more, out of the balance of the credit to the public) declined, and reached 0.53% at the end of the fourth quarter, as compared to 0.6% at the end of 2023. The ratio is an indication of the quality of the credit portfolio.

Operating and other expenses amounted to NIS 2,977 million in 2024, an increase of 3.5% over 2023 and was primarily due to an improved efficiencies as well as the impact of inflation. The 2024 efficiency ratio stood at 44.1%.

Management Comment

Eli Cohen, First International Bank Israel’s Chief Executive Officer, commented, “2024 presented many challenges for us, amid ongoing uncertainty. The Swords of Iron War negatively affected hundreds of thousands of Israelis, both directly and indirectly, and the Bank’s staff and managers remained fully committed to providing optimal customer service throughout the period. Together with a series of benefits and reliefs for First International Bank’s customers, we continued to support Israel’s security forces and to society in general. This is primarily through an initiative we launched in the early days of the war, and which continues today. As part of this initiative, we stand by and supports the brave members of Kibbutz Nir Oz, who have suffered devasting losses in the attack.”

“I am proud and grateful to the thousands of First International Bank’s staff members, for their devotion during this period of war, for their motivation, their determination and their dedicated service they continue to provide our customers.”

“Today, we published the Bank’s financial results for 2024. Despite the significant challenges, the results reflect resilience and growth. This year, we have seen strong momentum in our core operations and strategic focus areas, with the credit portfolio growing by 10% and customer assets increasing by 25%. We have achieved growth through our activity with new customers and the continued expansion in our activity with existing customers, reinforcing our position as the leading bank in the capital markets sector. “

“The Bank’s results are also marked through a high level of financial stability, reflected in the quality of the credit portfolio, as well as the high capital and liquidity ratios. This stability is of considerable importance in the current period of economic uncertainty.”

“We are continuing to improve our value proposition to customers, by providing both a personalized service and also through our digital capabilities. The First International Bank’s customers are the first who can benefit from FibiWise, an innovative system we developed, that provides customers with a comprehensive financial view of their various accounts across all banks and financial institutions. Additionally, we also recently launched a preloaded wallet called Beyond, which, for the first time in the Israeli banking system, enables its holders to benefit from significant fixed benefits on their purchases.”

“I hope and pray that we will achieve calm in the security situation on the various fronts, for the safe return of the residents of the North and the South and for the return of all the hostages. I send my wishes for a speedy and full recovery to all the wounded and share my deepest condolences to the bereaved families.”

CONDENSED PRINCIPAL FINANCIAL INFORMATION AND PRINCIPAL EXECUTION INDICES

Principal financial ratios

2024

2023

2022

2021

2020

percent

Execution indices

Return on equity attributed to shareholders of the Bank

19.0

19.7

16.6

14.7

8.6

Return on average assets

1.02

1.06

0.89

0.82

0.49

Ratio of equity capital tier 1

11.31

11.35

10.42

11.46

11.18

Leverage ratio

5.18

5.26

5.19

5.34

5.29

Liquidity coverage ratio(1)

165

156

127

128

150

Net stable funding ratio(2)

140

146

133

139

Ratio of total income to average assets

2.9

3.2

2.9

2.6

2.7

Ratio of interest income, net to average assets

2.0

2.4

2.0

1.6

1.7

Ratio of fees to average assets

0.7

0.7

0.8

0.8

0.9

Efficiency ratio

44.1

43.5

50.9

58.3

61.8

Credit quality indices

Ratio of provision for credit losses to credit to the public

1.25

1.36

1.02

1.05

1.38

Ratio of total provision for credit losses (3) to credit to the public

1.38

1.50

1.12

1.13

1.48

Ratio of non-accruing debts or in arrears of 90 days or more to credit to the public

0.53

0.60

0.48

**0.63

0.86

Ratio of provision for credit losses to total non-accruing credit to the public

244.6

234.5

219.7

**244.0

221.3

Ratio of net write-offs to average total credit to the public

(0.04)

0.03

0.03

(0.01)

0.10

Ratio of expenses (income) for credit losses to average total credit to the public

(0.01)

0.42

0.11

(0.23)

0.52

Principal data from the statement of income

2024

2023

2022

2021

2020

NIS million

Net profit attributed to shareholders of the Bank

2,371

2,172

1,667

1,405

750

Interest Income, net

4,740

4,966

3,803

2,794

2,637

Expenses (income) from credit losses

(16)

502

123

(216)

464

Total non-interest income

2,006

1,652

1,611

1,756

1,523

   Of which:  Fees

1,553

1,502

1,489

1,444

1,371

Total operating and other expenses

2,977

2,877

2,755

2,652

2,569

   Of which:  Salaries and related expenses

1,739

*1,766

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