JUNE 30, 2022 FINANCIAL RESULTS PRESENTATION
The conference call does not replace the need to review the latest periodic/quarterly reports in which full information is contained, including forward looking information, as defined in the Israeli Securities Law, and set out in the aforementioned reports.
DISCLAIMER
This document and the information contained herein -
- Has been prepared by Bank Leumi le-Israel B.M. (the "Bank") solely for the purpose of presenting the Bank's business;
- Is provided solely for your information and may not to be copied, distributed or forwarded, directly or indirectly, in any form to any other person, nor published, wholly or partially, for any purpose;
- Does not purport to be all-inclusive or to contain all the information that may be relevant in making any decision concerning an investment in the securities of the Bank.;
- Some of the information in this document that does not refer to historical facts, constitutes forward-looking information, which is based, inter alia, on forecasts of the future regarding various matters related to economic developments in Israel and abroad, and especially to the foreign exchange and capital markets, legislation, directives of regulatory bodies, the behavior of competitors, technological developments, personnel issues, etc. and is subject to risks, uncertainties and changes in circumstances, that could cause actual results to differ materially from those included herein. For more information on the meaning of forward looking information, we would refer you to the Bank's most recent published Consolidated Financial Statements;
- Does not constitute an offer or invitation to purchase or subscribe for any securities, nor does it constitute advice;
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Macroeconomic Factors and Indicators
IMF - GDP Forecasts for 2022 - 2023 | |||||||||||||||
Resilient Recovery from COVID-19 in Israel | |||||||||||||||
8.2 | |||||||||||||||
7.4 | |||||||||||||||
6.8 | |||||||||||||||
5.7 | |||||||||||||||
4.8 | 4.5 | 4.9 | 5.0 | ||||||||||||
4.1 | |||||||||||||||
3.8 | 3.5 | ||||||||||||||
3.4 | 3.2 | ||||||||||||||
2.9 | |||||||||||||||
2.3 | 2.32.1 | 2.5 | 2.3 | ||||||||||||
2.2 | |||||||||||||||
1.71.71.7 | |||||||||||||||
1.8 | 1.2 | ||||||||||||||
1.0 | 0.8 | 1.0 | 1.0 | ||||||||||||
0.5 | |||||||||||||||
Australia | Canada France | Germany Japan | Korea | Netherlands United | United Israel | ||||||||||
2021 | 2022 | 2023 | Kingdom | States | |||||||||||
Bank of Israel and Fed Funds Rates, %
3.00% | 2.33% | ||
2.00% | |||
1.00% | |||
1.25% | |||
0.00% | |||
01/08/2019 | 01/08/2020 | 01/08/2021 | 01/08/2022 |
BoI Rates | Fed Funds Target Rates |
BOI - GDP, Rate of Change, Real Terms | ||||||||||||
8.2% | ||||||||||||
3.8% | ||||||||||||
5.0% | ||||||||||||
3.5% | ||||||||||||
(2.2%) | ||||
2019 | 2020 | 2021 | F2022* | F2023* |
Unemployment**, Age Group 15+
BOI estimates | |||||
17.7% | |||||
10.0% | |||||
3.8% | 4.5% | 4.6% | 3.4% | 3.3% | 3.5% |
2019 | 2020 | 2021 | Q2 2022 | *2022 | *2023 | |||||||||||
Standard Unemployment Rate | Broad Unemployment Rate | |||||||||||||||
Estimates | CPI | |||||||||||||||
2020 | 2021 | E2022 | E2023 | |||||||||||||
(0.6%) | 2.4% | 4.5%-5.0% | 2.0%-3.0% | |||||||||||||
Sources: Bank of Israel, CBS, IMF as of August 2022, Refinitiv.
*BOI Forecast as of July 7, 2022. CBS figures as of February 16, 2022. 2022 unemployment forecast refers to expected annual average for age group 25-64.CPI estimates derived from market expectations. **Broad Unemployment rate includes employees temporarily absent from their places of work due to the coronavirus crisis and those dismissed since March and who do not currently participate in the workforce.
3
Core Business Continues to Improve - Key Financial Metrics
Net Income (NIS millions)
ROE
Credit Growth
Cost / Income Ratio
Credit Loss (Income) Expense Ratio
PPNR / Average Assets*
ROA
H1 2022
3,601
17.1%
12.3%
40.3%
0.05%
1.6%
1.1%
Q2 2022 | Annual 2021 |
1,9926,028
18.5%15.0%
4.3%16.1%
35.0%46.8%
0.14%(0.25%)
1.9%1.4%
1.2%1.0%
*Pre-provision net revenue equals net interest income plus total non-interest income less total non-interest expense; presented on an annualized basis H1-2021 ROE is restated according to new BOI regulations
4 H1-2022 Credit Growth excludes Leumi USA on a comparative basis
Improving Returns via Delivery of Enhanced Operating Leverage
Cost Income Ratio
58.1%
53.8%
45.8%
39.7%
2019(1) 2020 2021* H12022*
Loan Loss Expenses (Income)
0.88%
0.22%0.04%
(0.24%)
2019 | 2020 | 2021 | H1 2022* |
ROE
17.1%
15.0%
9.2%
5.7%
2019(1) | 2020 | 2021 | H1 2022 |
- ROE and Cost Income Ratio are net of the effect of the sale of Leumi Card. * Excluding BLUSA
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Bank Leumi le-Israel BM published this content on 16 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 August 2022 13:03:05 UTC.