Mizrahi Tefahot Bank (MZTF) Q3 2022 earnings summary

Executive summary

• 9M net profit reached NIS 3,385 million, up 34.9% YoY; Q3 net profit was a record NIS 1,178 million, up 39.4% YoY.

• 9M annualized ROE was 20.6%, or 18.9% excluding asset-sale gains; public loans reached NIS 304.1 billion, up 17.1% YoY.

Financial highlights

• Q3 current-operation financing revenues rose 52.4% YoY to NIS 2,547 million; total Q3 financing revenues rose 43.1% to NIS 2,954 million.

• 9M financing revenues rose 29.8% to NIS 7,844 million; total revenues were NIS 9,949 million and pre-tax profit was NIS 5,249 million.

• At Q3-end, total assets were NIS 429.8 billion, public deposits NIS 345.3 billion and shareholders’ equity NIS 23.0 billion.

• 9M operating and other expenses rose 8.6% to NIS 4,359 million, mainly reflecting variable remuneration and non-recurring Union Bank merger costs.

Outlook and guidance

• Union Bank’s statutory merger was expected to take effect on December 29, 2022; systems conversion was completed after the reporting date.

• Strategic-plan target was a cost-income ratio below 50% by 2025; results were described as aligned with the plan and adapted to the new monetary environment.