18th Aug 2008 13:13
BANK LEUMI LE-ISRAEL B.M.
(GUARANTOR - GUARANTEED EURO MEDIUM TERM NOTE
PROGRAMME OF LEUMI INTERNATIONAL INVESTMENTS N.V.)
Summary Translation of Immediate Report
Bank Leumi le-Israel B.M.
Registration No. 520018078
Securities of the Corporation are listed on The Tel Aviv Stock Exchange
Abbreviated Name: Leumi
Leumi House, 34 Yehuda Halevi Street, Tel Aviv 65546
Phone: + 972 3 5148111, + 972 3 5149419; Facsimile: + 972 3 5149732
Electronic Mail: [email protected]
17 August 2008
To: Israel Securities Authority (www.isa.gov.il)
The Tel Aviv Stock Exchange (www.tase.co.il)
Immediate Report
Nature of the Event: Arab Israel Bank - Financial Statements
Bank Leumi le-Israel B.M. (the "Bank") announces that the Bank's subsidiary, Arab Israel Bank Ltd. ("Arab Israel Bank") has published its financial statements for the first half of 2008.
Net profit of Arab Israel Bank amounted to NIS 47.7 million in the reported period, compared with net profit of NIS 47.1 million in the corresponding period of 2007 - an increase of 1.3%.
Net return on shareholders' equity in the reported period amounted to 28.5% on an annual basis, compared with 28.3% in the corresponding period in 2007.
Total income amounted to NIS 170.2 million in the first half of 2008, compared with NIS 150.9 million in the corresponding period in 2007 - an increase of 12.8%.
The increase in net profit in the first half of 2008 is explained mainly by an increase of 10.8% in net interest income before provision for doubtful debts, and an increase of 17.3% in operating and other income, which were partially offset by an increase in operating and other expenses of 18.5%.
Net interest income before provision for doubtful debts amounted to NIS 116.0 million in the first half of 2008, compared with NIS 104.7 million in the corresponding period in 2007 - an increase of 10.8%. Net interest income before provision for doubtful debts for the second quarter of 2008 amounted to NIS 59.5 million, compared with NIS 54.3 million in the corresponding period in 2007 - an increase of 9.6%.
Provision for doubtful debts amounted to NIS 7.8 million in the first half of 2008, compared with NIS 3.2 million in the corresponding quarter in 2007. Provision for doubtful debts in the second quarter of 2008 amounted to NIS 5.2 million, compared with NIS 0.7 million in the corresponding quarter in 2007.
Operating and other income amounted to NIS 54.2 million in the first half of 2008, compared with NIS 46.2 million in the corresponding quarter in 2007 - an increase of 17.3%. Operating and other income in the second quarter of 2008 amounted to NIS 26.5 million, compared with NIS 24.6 million in the corresponding quarter in 2007 - an increase of 7.7%.
Total income after provision for doubtful debts amounted to NIS 162.4 million in the first half of 2008, compared with NIS 147.7 million in the corresponding quarter in 2007 - an increase of 10.0%. Total income after provision for doubtful debts in the second quarter of 2008 amounted to NIS 80.8 million, compared with NIS 78.2 million in the corresponding quarter in 2007 - an increase of 3.3%.
Operating and other expenses amounted to NIS 85.3 million in the first half of 2008, compared with NIS 72.0 million in the corresponding period in 2007 - an increase of 18.5%. Operating and other expenses in the second quarter of 2008 amounted to NIS 40.9 million, compared with NIS 40.7 million in the corresponding period in 2007 - an increase of 0.5%.
Total assets as at 30 June 2008 amounted to NIS 4,507.3 million, compared with NIS 4,216.3 million as at 31 December 2007 (an increase of 6.9%), and NIS 3,989.9 million as at 30 June 2007 (an increase of 13.0).
Date and time at which the corporation first became aware of the event or matter:
14 August 2008 at 15:00.
___________________________________________________________________________
Name of Electronic Reporter: Jennifer Janes, Position: Executive Vice President, Group Secretary
POB 2 Tel Aviv 61000, Phone: + 972 3 5149419, Facsimile: + 972 3 5149732,
Electronic Mail: [email protected]
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