Israel Discount Bank Q3 Profit Rises, Credit Loss Expenses Dip

Bank expected to record profit of NIS 217 million on net interest income of NIS 1.094 billion and credit loss charges of NIS 154 million.

Israel Discount Bank beat estimates with a 25 percent rise in quarterly profit, as lower expenses for credit losses offset a decline in financing income.

Discount, Israel's third-largest lender, reported on Wednesday that it earned NIS 276 million in the third quarter, compared with NIS 221 million a year earlier.

Net interest income slipped 4.2 percent to NIS 1.094 billion, due to lower capital gains on bond sales, while credit loss expenses slid nearly 27 percent to NIS 171 million.

Discount was expected to record a profit of NIS 217 million on net interest income of NIS 1.094 billion and credit loss charges of NIS 154 million.

Its core, Tier 1 capital to risk-weighted assets rose to 9.3 percent at the end of September, from 8.6 percent at the end of 2012.

The banking regulator requires banks to hold core Tier I ratio of at least 9 percent by the start of 2015, as part of a global drive to strengthen the industry and prevent a repeat of the 2008 financial crisis.

Discount named Lilach Asher-Topilsky as its new CEO last month, pending regulatory approval. She will replace Reuven Spiegel, who announced in August that he would step down in March 2014 for personal reasons.
 

Moti Milrod