Transcript presentation 2011

31/12/2011
Overview
Net Operating Earnings and ROE
NIS Millions
8.0%
8.6%
12.6%
9.7%
1.5%
2
The deepening of the crisis in the financial markets
has had a substantial effect on the results of the
third quarter and the first nine months of 2011
NIS Millions (Net)
2011
Provisions for impairments in securities portfolio
)76(
Provisions for doubtful debts
)12(
Effect of the losses on severance pay funding
)36(
Total effect of the crisis on profits and losses
Fair value of ALM derivatives : the effect of the gap
between measuring the results of the derivative
instruments on a fair value basis in comparison with
measuring results in balance sheet financial activities
on an accrual basis
)124(
20
3
Statements of income
2011- 2010 NIS Millions
Net interest income before provision for doubtful
debts
Of which: Recovery of loan losses
Net interest income before provision and after
recovery
Provision for doubtful debts
Of which: Recovery of loan losses
Operating commissions
Income from investment in shares (& dividend)
Other income
Operating & other expenses
Operating earnings before tax
taxation
Exterior share holders
Net earnings
2011
2010
change
2,181
2,205
(24)
N.A
80
)80(
2,181
2,125
56
)93(
)115(
22
N.A
80
)80(
1,385
1,437
)52(
)39(
13
)52(
22
33
)11(
)2,805(
)2,774(
)31(
651
799
)148(
)202(
)335(
133
63
45
18
485
482
3
(58)
4
Net interest income before provision
for doubtful debts
Net interest income before provision
for doubtful debts
excluding: Hedging of volatility in
provision for taxes
Net interest income before provision
for doubtful debts
(excluding: Hedging of volatility in
provision for taxes)
excluding: fair value of ALM
derivatives
Net interest income before provision
for doubtful debts
(excluding: Hedging of volatility in
provision for taxes and fair value of
ALM derivatives)
2011 – 2010 NIS Millions
2011
2010
Change
2,181
*2,125
56
)16(
14
)30(
2,197
*2,111
86
)47(
)78(
31
2,244
*2,189
55
*Excluding recovery
5
Income & Assets according to
segments
Total Income
Credit to
the public
small
business
2%
Deposits
from the
Public
50% of the
revenues are
from the private
and the personal
segments
6
Efficiency Ratio: Total Income to
Total Expenses
Operating
Expenses
Total
Income
%
Operating Expenses /
Total Income
%
Adjusted Operating Expenses /
Total Income *
124.2%
129.6%
132.9%
126.5%
*Expenses excluding severance pay fund effects, special provisions ; Net interest income excluding gains/losses from sale
and writedown of available for sale bonds, hedging of volatility in provision for taxes , interest income charged on problem
loans and effect of reconciliations to fair value of ALM derivatives ; Operating income excluding dividend, realization or
decline in value of shares and severance pay fund gains;
7
Operating & Other Expenses
(NIS Millions)
2010
2011
50
46
Goodwill
8
FIBI Strategic Assets & liabilities
structure NIS Millions
Capital Adequacy Basel II
13.10%
Tier 1 Capital Adequacy
8.48%
Deposits
from the
Public
81.4 NIS Billion
Credit to
the Public
65.0 NIS Billion
 12.38% backed with
cash, deposits &
state of Israel bonds
Deposits to Credit Ratio
125.3%
State of Israel Bonds: 8.5 NIS
Billion
Liquid Assets to
Deposits Ratio
33.1%
Gov. & Bank Deposits
1.4 NIS Billion
Deposits-Bank of Israel:
15.8 NIS Billion
Sovereigns Bonds: 0.8 NIS Billion
41.5%
Of capital available
for Investments
Capital Notes
5.0 NIS Billion
Capital available for
Investments
4.0 NIS Billion
Deposits in Banks: 2.7 NIS Billion
Banks Bonds: 1.2 NIS Billion
NIS+foreign Corporate Bonds:
0.8 NIS Billion
Structure Products, Hedge Funds &
Stocks:0.8 NIS Billion
Market Risks in VAR Terms: (0.05) NIS Billion
9
Total Assets, Deposits & Credit
NIS Billions
Assets
Equity
Credit to
the public
Public
Deposits
NIS Billions
$ Billions
10
Composition of Total Proprietary
Trading Book NIS Millions
NIS Millions
volume
31.12.11
volume
31.12.10
Composition
31.12.11
Composition
31.12.10
Government
bonds & Secured
by Government
bonds
9,259
10,616
78%
67%
92%
85%
1,242
2,695
11%
17%
Shares
556
947
5%
6%
Other
815
1,544
7%
10%
Of which: Fx
Corporate Bonds
243
690
Of which: NIS
Corporate Bonds
572
854
11,872
15,802
100%
100%
‫ אג"ח ממשלת‬:‫מזה‬
‫ישראל‬
Commercial
Banks bonds
Government bonds &
Secured by
Government bonds
78%
Total
PIIGS Exposure
NIS Millions
Total
Spain
Italy
123
81
Portugal
Greece
Irekand
0
0
0
11
Capital Adequacy Ratio
Basel II
Tier 1
4 top Banks in Israel
FIBI
Tier 2
%
-2.28
-2.11
-1.4
-0.52
-1.3
**
**
14.30%
14.57%
13.42%
**
**
-1.3
30/9-‫ המערכת נכון ל‬,31/12-‫*הבינלאומי נכון ל‬
12
Provision for Doubtful Debts
to Credit to the Public Ratio
Other 4 Leading Banks
FIBI
13
Changes in Net Profit - Subsidiaries
NIS Millions
2011
2010
Change
ROE
84.5
32.6
159.2%
9.83%
40.9
49
)16.5%(
9.4%
57.1
38.4
48.7%
18.7%
37
32.5
13.8%
9.8%
14