Mizrahi Tefahot Financial institution (TASE: MZTF) noticed an 11% rise in internet revenue in 2024. The financial institution reported its fourth quarter and full-year 2024 monetary outcomes this morning with file internet revenue of NIS 5.5 billion final yr, up from NIS 4.9 billion in 2023. The financial institution’s return on fairness in 2024 has grown to nearly double digits, and can probably be one of many highest within the banking system – 18.5%.
Within the fourth quarter, the return on fairness was 16.9%, up barely from 15.5% within the corresponding quarter of 2023.
The financial institution introduced that it’ll distribute 40% of its fourth-quarter revenue as a dividend, amounting to NIS 522 million. General in 2024, the financial institution would have distributed a dividend of NIS 2.18 billion, about half of which can go to the controlling house owners, the Wertheim and Ofer households.
The financial institution mentioned, “Regardless of the numerous and complicated challenges the Israeli financial system was confronted with all through 2024 within the wake of the Iron Swords Conflict and its results on all facets of life in Israel, in 2024 the Financial institution introduced file annual revenue of NIS 5,455 million, whereas sustaining the expansion momentum in lots of areas of exercise and key stability sheet objects, each in comparison with 2023 and from a multi-year perspective.”
Mizrahi Tefahot’s income from curiosity (internet) rose 7.5% to NIS 11.3 billion in 2024, and has greater than doubled since 2020, when it was NIS 4.8 billion. The financial institution famous that internet revenue was affected over the previous yr, amongst different issues, by a decline in financing revenue as a result of decline in rates of interest within the US, a fall within the Financial institution of Israel rate of interest (by 0.25% at first of final yr, and it has not decreased since then). This pattern led to a diversion of funds from present accounts, which pay nearly no curiosity on deposits. The financial institution additionally famous that from the start of 2024, the expansion pattern in financing revenue from present actions has been steadily restored.
In 2024, bills for credit score losses was NIS 519 million, down from NIS 1.46 billion in 2023, which was primarily attributable to provisions that the Financial institution of Israel ordered the banking system to make as a result of improve in credit score threat due to the struggle. The identical is true as a result of improve within the degree of threat as a result of rate of interest within the financial system. The speed of provisions for credit score losses of complete credit score to the general public was 0.14% final yr, in contrast with 0.45% in 2023.
Mizrahi Tefahot Financial institution CEO Moshe Lari mentioned, “Regardless of the various difficulties, we met all our targets, each social and enterprise, in a full and heart-warming method. The hundreds of fantastic staff of Mizrahi Tefahot gave tangible which means to our promoting slogan: ‘Folks First’, and of their decided and dedicated every day work, they listened to each downside and all troubles and acted sensitively to supply distinctive options to every buyer. As well as, the financial institution’s staff participated in lots of charity and volunteer actions, and gave expression to the distinctive Israeli spirit of mutual help and solidarity.”
RELATED ARTICLES
Regulator opposes Israeli banks growing dividends
Mizrahi Tefahot Q3 revenue jumps 30%
In 2024, the financial institution had 7,174 staff on common, much like the 7,148 staff in 2023 however down from 7,636 staff in 2022. The financial institution had 205 branches on the finish of 2024, the identical as in 2023.
Printed by Globes, Israel enterprise information – en.globes.co.il – on February 27, 2025.
© Copyright of Globes Writer Itonut (1983) Ltd., 2025.
