First International Bank of Israel's 2024 Financial Performance Review
Key Financial Highlights of 2024
The First International Bank of Israel (TASE: FIBI) has showcased remarkable fiscal performance for the year, emphasizing a commitment to growth and stability. The bank reported a net income of NIS 2,371 million, translating to a return on equity of 19%. In the fourth quarter alone, net income reached NIS 573 million, demonstrating an impressive 14.8% increase year-over-year.
Operational Growth and Deposit Increases
Throughout 2024, net credit to the public experienced a significant increase of 10%, reaching NIS 129.4 billion. The bank also saw its deposits from the public grow by 12.4%, accumulating to NIS 214.8 billion. Customers' assets rose by 25% compared to the prior year, culminating in a total of NIS 839 billion by year-end.
Shareholder Equity and Dividend Decisions
Equity attributed to the shareholders increased to NIS 13.4 billion, reflecting an 11.3% rise from the previous year. This surge enhances the tier 1 shareholders' equity ratio to a strong 11.31%, significantly above the regulatory requirement. The board announced a dividend distribution of NIS 228 million, which represents 40% of the net income, demonstrating the bank's strategic commitment to returning value to its shareholders.
Challenges and Management Insights
CEO Eli Cohen commented on the challenges faced during the year, particularly the impact of ongoing economic uncertainties. Despite these challenges, the bank's results reflect resilience and growth, with strong momentum in core operations. The bank has focused on enhancing customer service and providing digital solutions, including the innovative FibiWise platform that offers clients a comprehensive view of their financial activities.
Investment in Credit Quality and Stability
In terms of risk management, the non-performing loan (NPL) ratio improved, declining to 0.53% by the year's end. The bank reported income from credit losses of NIS 16 million compared to significant expenses of NIS 502 million in the previous year. Operating expenses rose by 3.5% to NIS 2,977 million, primarily due to improved efficiencies and inflationary impacts.
Conclusion: First International Bank's Forward Path
The First International Bank of Israel concluded 2024 on a solid note, with robust financial health and a clear path forward amidst economic uncertainties. The combination of increased profits, steady growth in credit and deposits, and a high liquidity coverage ratio of 165% positions FIBI well in the market. With continuous support of community and customer needs, the bank actively seeks to enhance its services and maintain its leadership in the banking industry.
Frequently Asked Questions
What were the net earnings for First International Bank of Israel in 2024?
The net earnings for 2024 stood at NIS 2,371 million.
How did the bank perform in terms of equity growth?
The bank's shareholders' equity increased to NIS 13.4 billion, marking an 11.3% growth from the prior year.
What dividend did the bank declare for its shareholders?
The bank declared a dividend of NIS 228 million, which is 40% of the net income.
How did the bank's credit quality perform in 2024?
The NPL ratio fell to 0.53%, indicating improved credit quality.
What were the bank's main strategies moving forward?
The bank aims to strengthen its customer service, enhance digital capabilities, and ensure financial stability amid economic challenges.
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