Mizrahi Tefahot Bank (MZTF) Q2 2023 earnings summary

Executive summary

• Q2 net profit was NIS 1,398 million, up 32.8% YoY, with annualized ROE of 22.0%; H1 net profit rose 25.3% to NIS 2,765 million, with ROE of 22.2%.

• Higher net interest revenue reflected loan expansion and higher interest rates; credit-loss expenses also increased amid higher market risk.

• Net loans to the public reached NIS 316.9 billion, up 6.3% YoY; public deposits were NIS 345.2 billion, up 5.3%.

Financial highlights

• Q2 total revenues were NIS 3,995 million, up 24.7% YoY; financing revenues from current operations were NIS 2,962 million, up 41.3%.

• H1 total revenues were NIS 7,821 million; net interest revenue was NIS 6,327 million, versus NIS 4,597 million a year earlier.

• H1 financing revenues from current operations rose 50.2% YoY to NIS 5,904 million.

• Q2 operating and other expenses were NIS 1,521 million, up 5.5%; H1 expenses rose 4.5% to NIS 2,958 million.

• H1 non-interest revenues were NIS 1,494 million versus NIS 1,819 million, mainly reflecting a NIS 371 million asset-sale gain in Q1 2022.

Segment performance

• Housing loans reached NIS 200.9 billion, up 6.1% YoY; household and private banking loans were NIS 27.6 billion, up 3.8%.

• Business loans were NIS 88.4 billion, up 7.5% YoY; total individual loans grew 5.8% to NIS 228.5 billion.

• Core deposits totaled NIS 225.0 billion, equal to 65% of public deposits; households and private banking accounted for NIS 156.8 billion.