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First International Bank of Israel: Q3 2024 Financial Results

On November 25, 2024, First International Bank of Israel (TASE: FIBI), one of Israel's leading banking institutions, announced its financial performance for the third quarter and the first nine months of 2024. The results exhibit impressive growth in income, credit issuance, and public deposits, reinforcing the bank's position in the market amidst economic uncertainties.

Financial Highlights

During the third quarter of 2024, the bank reported a net income of NIS 620 million, which corresponds to a robust return on equity (ROE) of 19.4%. This result indicates a substantial increase of 36.3% in net profit compared to the same period last year. Over the nine-month period, total net income reached NIS 1,798 million, marking a 7.5% growth from the previous year, with a consistent ROE of 19.4%.

Moreover, credit to the public witnessed a growth of 6% since the end of 2023, alongside an 11.4% increase in public deposits. The bank's asset portfolio surged by 19%, totaling approximately NIS 800 billion by the end of Q3 2024.

Financial Stability

The bank's tier 1 capital ratio stood impressively at 11.41%, significantly exceeding regulatory requirements, underlining its strong capital position. Additionally, the non-performing loans (NPL) ratio stabilized at 0.57%, showcasing the quality of the bank's credit portfolio amidst ongoing economic challenges.

The First International Bank's Board of Directors has approved a dividend of NIS 248 million, accounting for 40% of the net income, reflecting confidence in the bank’s robust financial position and commitment to shareholder returns.

Management's Perspective

Eli Cohen, the CEO of First International Bank, shared insights on the bank's strong performance. He indicated that the growth in public deposits and credit portfolios happened while maintaining high underwriting quality and portfolio diversification, crucial amid Israel's complex economic and security landscape.

Cohen emphasized, "The ongoing multi-front war in Israel necessitates our commitment to liquidity and capital integrity, allowing us to provide continuous support to our customers during these challenging times.”

He also highlighted an impressive customer satisfaction rate, wherein First International Bank ranked highest among Israeli banking customers, based on the latest Marketest survey results—an accolade of which the bank's team is particularly proud.

Strategic Changes

The bank has recently undergone management transitions, with notable appointments including Vered Golan as Head of the Corporate Division and Dr. Moriah Hoftman-Doron as Chief Legal Counsel. The management changes are part of the bank's strategy to enhance its operational efficiency and sustain growth in a competitive banking environment.

Conclusion

The financial results of the First International Bank of Israel for Q3 2024 are a testament to its resilience and operational excellence in the banking sector. The bank's performance amid challenging circumstances not only reflects its strong financial stability but also showcases its dedication to serving its customer base effectively. As First International Bank continues to adapt to the prevailing economic conditions, its focus on customer satisfaction and strategic growth remains a priority for sustained success in the future.