12th Mar 2009 15:07
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]
12 March 2009
To: Israel Securities Authority (www.isa.gov.il)
The Tel Aviv Stock Exchange (www.tase.co.il)
Immediate Report
Nature of the Event: Leumi Card - Financial Statements
Bank Leumi le-Israel B.M. announces that its subsidiary, Leumi Card Ltd., today published its financial statements for 2008.
- Net profit in 2008 amounted to NIS 146 million, an increase of 40% compared with 2007.
Net profit in the fourth quarter of 2008 amounted to NIS 22 million, compared with NIS 29 million in the corresponding quarter in 2007. Dani Cohen, CEO of Leumi Card stated that the fourth quarter of 2008 has already borne witness to the effects of the slowdown in the Israeli economy on the credit card market, and on households. This is reflected in a decrease in purchases and changes in consumer habits. He estimated that the intensification of the crisis and the recession will be felt with greater intensity in the credit card sector in 2009.
- Net operating profit in 2008 amounted to NIS 139 million, an increase of 24% compared with 2007.
- Total income in 2008 grew by 10%, and amounted to NIS 679 million, compared with NIS 619 million in 2007.
- Total consolidated assets increased by 11%, and reached some NIS 6.6 billion on 31 December 2008, compared with some NIS 6.0 billion on 31 December 2007.
- The number of valid cards held by customers grew by some 9%, and reached some 1.6 million by the end of 2008. The number of active cards also grew by some 9%, and reached 1.4 million (85% of valid cards).
Mr. Baruch Lederman, Chairman of the Board of Directors of Leumi Card stated that this was the occasion to mention and recognize the late Arye Heilweil, CEO of Leumi Card for eight years, who died in October 2008. He stated that the achievements of the company in 2008 and throughout the years should be credited to his vision and the road he outlined, and that he was convinced that Mr. Heilweil's vision and road would continue to guide Leumi Card in the coming years.
- The number of non-bank-affiliated cards amounted to some 406,000 (25% of all cards), an increase of 42% compared with 2007. The number of active non-bank-affiliated cards reached some 324,000 (23% of all active cards), an increase of 41% compared with 2007. The increase derives mainly from the activities of the Shufersal and Multi 365 consumers' clubs.
- In 2008, Leumi Card issued over 1.2 million prepaid "Giftcard" cards of various types. During this year, the scope of activity of "Giftcard" cards amounted to NIS 500 million, an increase of 18% compared with 2007.
- Total credit amounted to NIS 1.7 billion, an increase of 27% compared with 2007.
- The balance of private credit in 2008 amounted to NIS 936 million, an increase of 38% compared with 2007. The balance of commercial credit in 2008 amounted to NIS 794 million, an increase of 15% compared with 2007. The credit portfolio is made up of many customers in various amounts with a wide and high-quality spread. In the field of commercial credit, there was significant growth in the areas of discounting and advance payments, which amounted to NIS 473 million, 60% of total commercial credit.
- Net interest income in 2008 amounted to NIS 109 million, an increase of 68% compared with 2007, which arises from an increase of 100% in interest income from credit to private customers, to NIS 64 million, and an increase of 26% in interest income from commercial credit, to NIS 45 million.
Date and time at which the corporation first became aware of the event or matter:
12 March 2009 at 11:45.
___________________________________________________________________________
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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