Mizrahi-Tefahot’s credit portfolio expanding rapidly
Bank Mizrahi-Tefahot, headed by Moshe Lari, posted a net profit of NIS 1.05 billion for the second quarter of 2022, representing a 6.6% rise in comparison with the profit of NIS 988 million in the corresponding quarter of 2021. For the first half year, the bank’s net profit was NIS 2.2b., 32.6% higher than in the first half of 2021. The bank’s return on equity was 19.4% in the second quarter and 20.6% in the first half year.
Following these results, Bank Mizrahi-Tefahot will resume paying dividends, and will distribute NIS 316m., representing 30% of the second quarter profit, after refraining from paying a dividend for the first quarter in order to be able to expand its credit portfolio.
Mizrahi-Tefahot’s credit to the public has continued to grow rapidly, reaching almost NIS 300b. at the end of the second quarter, 17.3% more than at the end of the second quarter of 2021. Mizrahi-Tefahot’s mortgage loan portfolio totaled NIS 189.4b. at the end of the second quarter of 2022, 15.8% more than at the end of the corresponding
quarter and 8.3% more than at the end of 2021.
The exceptional growth in the credit portfolio applies to all sectors, but particularly to the corporate sectors, which grew by double-digit percentages. Credit to large businesses grew by an impressive 39.3% in comparison with the end of the second quarter of 2021.
Alongside this, changes in the macro-economic environment, as inflation and interest
rates rose, also contributed to the bank’s profitability. Net interest income was NIS 2.5b. in the first half of 2022, 23% more than in the first half of 2021.
Income from mortgage loans totaled NIS 609m in the second quarter, 9.5% more than in the corresponding quarter. In the first half year, income from mortgage loans was NIS 1.21b., 11% more than in the first half of 2021.