Leumi Annual Report 2023

Posted: 25th March 2024   |   Share

Annual Report 2023


  • Return on equity for the year - net of the one-off deduction recorded in the first quarter with respect to the investment value in Valley National Bank - was 15.9%; Net income - net of the one-off deduction - totaled NIS 8.1 billion ($2.23 billion). Without the neutralization – the net income in 2023 totaled NIS 7 billion ($1.93 billion) and return on equity was 13.7%
  • Mortgages: an annual growth of 9% - the highest in the banking system
  • Best efficiency ratio among Israeli banks: 32.6%
  • Robust financial indicators: liquidity coverage ratio of 124% and total capital ratio of 14.72%
  • Dividend: following the guidance of the Bank of Israel, Leumi distributes 20% of the net income for the fourth quarter - NIS 365 million ($101 million). The total amount of distribution (dividend + share buyback) in 2023 is NIS 2.35 billion ($0.65 billion)
  • On the back of the war, loan loss expenses (mainly the collective provision) in 2023 reflect an expense rate of 0.58%, while the specific provision rate was only 0.08%
  • Total estimated costs of the relief programs and donations provided by Leumi to customers and the public following the War is estimated at NIS 575 million ($159 million)
  • In the first quarter of 2024, a one-time capital gain of NIS 830 million ($229 million) is expected, once the transition of the Bank's HQ to Lod is completed

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