BDI CODE 2014 - Israel's Leading Companies, Law Firms, Accounting Firms, Best Companies To Work For - page 20

dual-listed
listed in Tel Aviv
listed in U.S.A
listed outside USA& Israel
employees via the company
group figures
*
estimated figures
20
Geo-political events and processes in the world economy in 2013 presented
challenges to the decision-makers in the local banking system that functions
in a complex environment of risks. During the past year the Israeli economy
struggled with a recessional environment global activity combined with low
interest rates.
Similarly to last year, in 2013 the Israeli economy grewat amoderate rate of about
3.3%. This was despite the positive contribution to growth of the production of
natural gas from the Tamar repository during the year. On the other hand the
growth of the economy was offset, inter alia, by diminishing exports influenced
by the slowdown in world trade, revaluation of the shekel, the need to reduce
the government deficit and slowdown in the building industry.
On the backdrop of a low inflationary environment, revaluation in the rate of
exchange, the Bank of Israel undertook extensivemonetary policies with the aim
of stimulating economic activity and tomaintain financial stability. Accordingly,
Bank of Israel interest was gradually reduced from 1.75% at the beginning of
the year to 1% at the end and to 0.75% in March 2014. At the same time,
as part of the plans to offset the influence, during the year, of production of
natural gas on the supply of foreign currency and support for export activity,
the Bank of Israel renewed its involvement in the foreign currency market by
means of purchasing about $ 5 billion.
In 2013 there was a reduction in the government deficit that totaled about
NIS 33 billion and constituted about 3.2% of the product compared to 3.9%
in 2012. In order to comply with the budgetary goals, a policy of reduction of
government expenditure began combined with levying of taxes. In addition
one-time income in the amount of about NIS 3.3 billion was received as a result
of completion of the sale of the Iscar Company.
The rate of inflation in Israel in 2013 reached 1.8% as opposed to 1.6% last
year. Among the developments that contributed to the increases in prices, we
can mention the rise in housing costs and price-hikes of energy and food. On
the other hand the growing competition in the cellular market caused a drop
in communications expenditure.
During the past year the housing market in Israel reached a boiling point and
was positioned at the center of public debate. Housing costs registered a real
increase of about 6% in 2013, while an increase of about 60%was registered
in housing costs since 2008. In view of the continual increase in housing costs
and increase in the extent of credit for housing, the Inspector of banks was
compelled to grab the bull by the horns and continue to implement steps
to reduce the risks to the stability of the financial system. Among the steps
implemented was increase of the capital cushions and amount of allocations
to credit losses as a result of housing loans.
The developments in the local market during the past year were expressed
in the results of the banks’ activities in Israel, in the framework of which they
operate about 1,200 branches deployed nation-wide. In 2013 the banks’
assets totaled about NIS 1,308 billion as opposed to NIS 1,281 billion last year,
a growth of about 2%. The low interest level existing in the economy as part
of the policies to encourage economic growth brought about continuation of
the trend of decrease in the extent of savings plans of the public in the banks,
which totaled about NIS 8.9 billion in relation to NIS 12.2 billion in 2012, a
decrease of about 27%. The extent of credit provided to the public constituted
about 65% of the total assets of the banks and was estimated at about NIS
854 billion, a growth of about 1% relative to last year. The portion of credit
for problematic borrowers from the total public credit risk decreased in 2013
to 3.55% as opposed to 3.66% last year.
The efficiency steps undertaken by the banks last year with the aim of
strengthening their competitive capacity, yielded fruit bringing about a growth
of about 18% in their net profit, totaled about NIS 7.3 billion in 2013. The
total equity capital of the banks in Israel registered a growth of about 7% in
comparison to last year, and was estimated at about NIS 90 billion as opposed
to NIS 84 billion in 2012. Similar to last year, the aggregate equity capital of
the five leading banks constituted about 96%of the total equity capital of the
banks, about NIS 86 billion.
Bank Hapoalim was ranked this year in first place according to total managed
credit, total earnings and total assets. The total assets of the bankwere estimated
at about NIS 380 billion and its earnings amounted to about NIS 13.7 billion. The
bank, which operates 304 branches, registered a pre-tax profit that amounted
to about NIS 3.8 billion.
In second place, according to the three parameters, was ranked Bank Leumi.
The bank’s assets totaled about NIS 374 billion and total managed credit was
estimated at about NIS 241 billion. The bank, which operates 322 branches,
concluded 2013 with a pre-tax profit of an estimated NIS 3.7 billion and its
earnings were estimated at about NIS 12.9 billion, a growth of about 6%
compared to last year.
Discount Bank, which operates 249 branches, was ranked in third place according
to total earnings and total assets. The earnings of the bank totaled about NIS
7.8 billion while its total assets were estimated at about NIS 201 billion.
Ranked in second place according to equity capital yields was Mizrahi Tefahot
Bank, which registered earnings of about NIS 5 billion in 2013, a growth of 4%
in comparison to last year. The bank managed credit in the amount of about
NIS 139 billion last year and its total assets grew by about 11% and stood at
about NIS 180 billion.
The fifth place in the rankings, this year too, was located The First International
Bank,whichconclude2013withearningsofaboutNIS3.9billionandpre-taxprofits
of about NIS 947 million. The assets of the bank, which operates 183 branches,
amounted to about NIS 111 billion, a growth of about 5% relative to 2012.
Commercial Banks
נתוני הגרף - סך הנכסים במערכת הבנקאית, בשנים האחרונות )במיליארדי שקלים(
שנה
2009
2010
2011
סך נכסים
1089
1122
1235
750
950
1,150
1,350
009
2010
2011
2012
2013
1,089
1,122
1,235
1,281
1,308
1,500
2,000
2,500
3,000
2,746
2,543
2,580
1,891 1,947
1,076
1,078
Bank Hapoalim
29.5%
Bank Leumi
28.2%
Discount Bank
13.6%
Mizrahi Tefahot
Bank
16.2%
First International
Bank
8.1%
Other banks
4.4%
Distribution of Credit to the Public per Bank
(in financial terms for 2013)
CONTINUED
1...,10,11,12,13,14,15,16,17,18,19 21,22,23,24,25,26,27,28,29,30,...480