Press Releases

2017

  • Bank of Jerusalem publishes its financial statements as of March 31, 2017
    Bank of Jerusalem presents an increase in interest income, net and continues to maintain a stability regarding capital adequacy ratio of 10.1% Net profit in the first quarter of 2017 amounted to NIS 7.6 million compared to NIS 22.4 million in the corresponding quarter last ye...

    Bank of Jerusalem presents an increase in interest income, net and continues to maintain a stability regarding capital adequacy ratio of 10.1%

    Net profit in the first quarter of 2017 amounted to NIS 7.6 million compared to NIS 22.4 million in the corresponding quarter last year. The main decrease derives from the realization of bonds available for sale generating a net profit of NIS 21.0 million and offsetting this extraordinary profit, net profit in the corresponding quarter last year would have amounted to NIS 1.4 million.

    Gil Topaz, the bank's CEO: the bank continues to implement the strategy while investing in its digital assets, while putting an emphasis on the launching of an advanced consumer credit module adapted to mobile, upgrading an internet system in deposits allowing the customers of all banks to make deposits without physically reaching the branch and launching a new marketing site for customers of all banks. In accordance with the business strategy, the bank operates so as to provide banking solutions to the customers of all banks, without the need to transfer the checking account activity to the Bank of Jerusalem.

    The average net earnings yield on equity in the first quarter of 2017 was 3.8% compared to 11.9% in the corresponding quarter last year, offsetting the profit from the realization of bonds available for sale, the yield in the corresponding quarter last year would have been 0.7%.

    Interest income, net in the first quarter of 2017 totaled NIS 86.7 million compared to NIS 81.6 million in the corresponding quarter last year – an increase of approximately 6.3%. The increase results from the continued improvement in credit margins.

    Expenses in respect of credit losses in the first quarter of 2017 amounted to NIS 11.0 million (provision rate of 0.46%) compared to NIS 12.3 million (0.49%) in the corresponding quarter last year, a decrease of approximately 11%.

    In the first quarter of 2017, non-interest financing income was not recorded compared to NIS 32.1 million that were recorded in the corresponding quarter last year. The main decrease derives from the realization of bonds available for sale amounting to NIS 33.7 million in the corresponding quarter last year.

    Income from Fees in the first quarter of 2017 totaled NIS 32.0 million compared to NIS 30.7 million in the corresponding quarter last year – an increase of approximately 4%. The increase mainly stems from an increase in project financing fees and from an increase in the number of ATM machines around the country.

    Operating and other expenses in the first quarter of 2017 amounted to NIS 99.7 million compared to NIS 96.2 million in the corresponding quarter last year - an increase of 3.6%. The increase is mainly due to an increase in advertising expenses and computer expenses.

    The bank's Tier 1 Capital Adequacy Ratio to risk components as of March 31, 2017, is 10.1% similar to the ratio at the end of 2016.
    The balance of net credit to the public, as of March 31, 2017, amounted approximately to NIS 9,590 million compared to NIS 9,790 million at the end of 2016 – a decrease of approximately 2%.

    The balance of deposits held by the public as of March 31, 2017, amounted to NIS 10,798 million, compared to NIS 10,868 million at the end of 2016, a decrease of approximately 1%.

    The Bank's equity as of March 31, 2017, amounted to approximately NIS 813.5 million compared to NIS 808.3 million at the end of 2016, an increase of approximately 0.6% after a dividend payment of NIS 3.0 million.

    Total balance sheet, as of March 31, 2017, amounted to approximately NIS 13,817 million compared to NIS 14,202 million at the end of 2016.

     

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2016

  • Jerusalem Bank publishes its financial statements as of September 30, 2016
     ​Jerusalem Bank presents a yield of 8.4% for the first nine months, while improving the interest income, net, and tier 1 capital adequacy ratio of 9.7% Net income for the first nine months of 2016 amounted to NIS 49.5 million compared to NIS 42.3 million in the correspond...

     ​Jerusalem Bank presents a yield of 8.4% for the first nine months, while improving the interest income, net, and tier 1 capital adequacy ratio of 9.7%
    Net income for the first nine months of 2016 amounted to NIS 49.5 million compared to NIS 42.3
    million in the corresponding period last year, an increase of 17%. The main increase derives from the realization of bonds available for sale amounting to NIS 21.0 million (after tax effect) and from an increase in net interest income which were partially offset by an increase in operating and other expenses and from an increase in tax expenses amounting to NIS 4.6 million resulting from a decrease in the balance of deferred taxes as a result of the change in tax rate.  
    In the third quarter of 2016, net income amounted to NIS 9.9 million compared to NIS 10.5 million in the corresponding quarter last year.  
    The average net earnings yield on equity for the first nine months of 2016 was 8.4% compared to 7.6% in the corresponding period last year. 
    Interest income, net for the first nine months of 2016 totaled NIS 258.8 million compared to NIS 249.7 million in the corresponding period last year – an increase of approximately 4%. The increase results from the continued improvement in credit margins and from an increase in the consumer credit balance and mortgages. 
    Expenses in respect of credit losses for the first nine months of 2016 amounted to NIS 22.5 million compared to NIS 26.0 million in the corresponding period last year, a decrease of approximately 13%. The main decrease derives from a decrease in the provision for housing credit.  
    Non-interest financing income for the first nine months of 2016 amounted to NIS 30.5 million compared to NIS 0.7 million in the corresponding period last year. The main increase derives from the realization of bonds available for sale.  
    Income from Fees for the first nine months of 2016 totaled NIS 91.5 million compared to NIS 96.0 million in the corresponding period last year. The decrease mainly stems from onetime income from securities amounting to NIS 4.3 million which was included in income from fees in the corresponding quarter last year. 
    Operating and other expenses for the first nine months of 2016 amounted to NIS 289.4 million, compared to NIS 265.8 million in the corresponding period last year, an increase of 8.9%. The increase is mainly due to an increase in payroll expenses and an increase in depreciation and computer expenses. 
    The bank's Tier 1 Capital Adequacy Ratio as of September 30, 2016, is 9.7% similar to the ratio as of December 31, 2015.

    ​Additional key data as of September 30, 2016:

    The balance of liquid assets (cash, bank deposits and securities) net of securities lent as of September 30, 2016, amounted to NIS 3,480 million, compared to NIS 3,592 million at the end of 2015, a decrease of approximately 3.1%.
    Net credit balance to the public, as of September 30, 2016, amounted approximately to NIS 10,131 million compared to NIS 9,889 million at the end of 2015, an increase of approximately 2.4%. 
    The balance of deposits by the public as of September 30, 2016, amounted to NIS 11,048 million, compared to NIS 11,019 million at the end of 2015, an increase of approximately 0.3%.
    The balance of bonds and deferred debt notes as of September 30, 2016, amounted to NIS 1,569 million compared to NIS 1,635 million at the end of 2015.
    The Bank's equity as of September 30, 2016, amounted to approximately NIS 808.7 million compared to NIS 784.0 million at the end of 2015, an increase of approximately 3.2%.
    Total balance sheet, as of September 30, 2016, amounted to approximately NIS 14,655 million compared to NIS 14,220 million at the end of 2015, an increase of approximately 3.0%. 

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  • Jerusalem Bank publishes its financial statements as of June 30, 2016
    Jerusalem Bank presents an increase in the net earning yield to 10.2%, while improving the interest income, net, and improving the credit margins Net income for the first six months of 2016 amounted to NIS 39.6 million compared to NIS 31.8 million in the corresponding period...

    Jerusalem Bank presents an increase in the net earning yield to 10.2%, while improving the interest income, net, and improving the credit margins

    Net income for the first six months of 2016 amounted to NIS 39.6 million compared to NIS 31.8 million in the corresponding period last year, the main increase derives from the realization of bonds available for sale amounting to NIS 22.2 million (after tax effect) and from an increase in net interest income which were offset by an increase in operating and other expenses.  
    In the second quarter of 2016 net income amounted to NIS 17.2 million compared to NIS 14.1 million in the corresponding quarter last year, an increase of 22%.
    The average net earnings yield on equity for the first six months of 2016 was 10.2% compared to 8.5% in the corresponding period last year. 
    In the second quarter of 2016 the average net earnings yield on equity was 8.9% compared to 7.5% in the corresponding quarter last year.  
    Interest income, net in the first six months of 2016 totaled NIS 171.5 million compared to NIS 166.3 million in the corresponding period last year – an increase of approximately 3%. The increase results from the continued improvement in credit margins and from an increase in the consumer credit balance and mortgages. 
    Expenses in respect of credit losses for the first six months of 2016 amounted to NIS 15.4 million compared to NIS 13.8 million in the corresponding period last year. The ratio of expenses in respect of credit losses and the total credit to the public is 0.30% compared to 0.28% in the corresponding period last year. The main increase derives from collection of individual debts carried out in the corresponding period last year and decreased the expenses in respect of credit losses 
    Non-interest financing income for the six three months of 2016 amounted to NIS 32.4 million compared to NIS 0.3 million in the corresponding period last year. The main increase derives from the realization of bonds available for sale.  
    Fees for the first six months of 2016 totaled NIS 61.7 million compared to NIS 67.9 million in the corresponding period last year. The decrease mainly stems from onetime income from securities amounting to NIS 4.3 million which was included in income from fees in the corresponding quarter last year. 
    Other income for the six three months of 2016 totaled NIS 8.0 million compared to NIS 7.0 million in the corresponding period last year. 
    Operating and other expenses for the first six months of 2016 amounted to NIS 193.6 million, compared to NIS 181.2 million in the corresponding period last year. The increase is mainly due to an increase in depreciation expenses and computer expenses in view of the impact of implementing the bank's strategic plan. 
    The bank's Tier 1 Capital Adequacy Ratio as of June 30, 2016, is 9.7% similar to the ratio as of December 31, 2015.
    The bank's leverage ratio as of June 30, 2016 is 5.2% similar to the ratio as of December 31, 2015.
    The bank's liquidity coverage ratio as June 30, 2016 is 390% compared to 403% as of December 31, 2015.
    The bank relies on a wide customer base of households, Israeli residents and foreign residents and operates in the area of mortgages, consumer credit, capital market, savings and deposits as well as in the area of construction projects while specializing in urban renewal with institutional entities. 

    Additional key data for first six months of 2016:

    The balance of liquid assets (cash, bank deposits and securities) as of June 30, 2016, amounted to NIS 4,062 million, (of which cash and bank deposits amounted to approximately NIS 2,488 million), compared to NIS 3,852 million (of which cash and bank deposits amounted to NIS 2,072 million) at the end of 2015, an increase of 5.5%.
    Net credit balance to the public, as of June 30, 2016, amounted approximately to NIS 10,157 million compared to NIS 9,889 million at the end of 2015, an increase of approximately 2.7%.  

    The balance of deposits by the public as of June 30, 2016, amounted to NIS 11,165 million, compared to NIS 11,019 million at the end of 2015, an increase of approximately 1.3%. 

    The balance of bonds and deferred debt notes as of June 30, 2016, amounted to NIS 1,634 million (of which the balance of deferred debt notes amounted to NIS 436 million) compared to NIS 1,635 million at the end of 2015 (of which the balance of deferred debt notes amounted to NIS 406 million), a decrease of approximately 5% deriving from the repayment of bonds and deferred debt notes. 

    On June 13, 2016, the bank issued, through its fully controlled subsidiary, deferred debt notes of COCO type in the amount of NIS 128.4 million. 

    On the other hand, a decrease was recorded from the redemption of bonds issued by such company according to their original payment conditions. 

    The Bank's equity as of June 30, 2016, amounted to approximately NIS 808.0 million compared to NIS 784.0 million at the end of 2015. 

    Total balance sheet, as of June 30, 2016, amounted to approximately NIS 14,630 million compared to NIS 14,220 million at the end of 2015.​

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  • Jerusalem Bank publishes its financial statements as of March 31, 2016
    Jerusalem Bank presents an increase in the net earning yield to 11.9%, while improving the interest income, net, and improving the credit margins  Net income for the first three months of 2016 amounted to NIS 22.4 million compared to NIS 17.7 million in the corresponding pe...

    Jerusalem Bank presents an increase in the net earning yield to 11.9%, while improving the interest income, net, and improving the credit margins 
    Net income for the first three months of 2016 amounted to NIS 22.4 million compared to NIS 17.7 million in the corresponding period last year, the main increase derives from a profit resulting from the realization of bonds available for sale and from improving credit margins that was partly offset by a onetime effect of the decrease in corporate tax rate and from an increase in group provision for consumer credit.
    The average net earnings yield on equity for the first three months of 2016 was 11.9% compared to 9.7% in the corresponding period last year. 
    Interest income, net in the first three months of 2016 totaled NIS 81.6 million compared to NIS 79.7 million in the corresponding period last year – an increase of approximately 2%. The increase results from the continued improvement in credit margins and from an increase in the consumer credit balance and mortgages. 
    Expenses in respect of credit losses for the first three months of 2016 amounted to NIS 12.3 million compared to NIS 5.0 million in the corresponding period last year. The ratio of expenses in respect of credit losses and the total credit to the public is 0.49%. The main increase derives from an increase in the group provision for consumer credit due to an update in the period for calculating the average provision rate according to the directives of the Bank of Israel.    
    Non-interest financing income for the first three months of 2016 amounted to NIS 32.1 million compared to NIS 2.7 million in the corresponding period last year. The main increase derives from a profit resulting from the realization of bonds available for sale.  
    Fees for the first three months of 2016 totaled NIS 30.7 million compared to NIS 37.4 million in the corresponding period last year. The decrease mainly stems from decrease in fees from securities activity. Revenues from these fees in the corresponding quarter last year included high and onetime income of NIS 4.3 million.   
    Other income for the first three months of 2016 totaled NIS 5.1 million compared to NIS 2.9 million in the corresponding period last year; the increase derives from rejecting a class action by the court. 
    Operating and other expenses for the first three months of 2016 amounted to NIS 96.2 million, compared to NIS 91.1 million in the corresponding period last year. The increase is mainly due to an increase in depreciation expenses in view of the impact of implementing the bank's strategic plan and from an increase in payroll expenses.
    The bank's Tier 1 Capital Adequacy Ratio as of March 31, 2016, is 9.7% similar to December 31, 2015.
    The bank's leverage ratio as of March 31, 2016 increased to 5.4% compared to 5.2% as of December 31, 2015.
    The bank's liquidity coverage ratio as of March 31, 2016 is 309% compared to 403% as of December 31, 2015.
    The bank relies on a wide customer base of households, Israeli residents and foreign residents and operates in the area of mortgages, consumer credit, savings and deposits. 
    The bank continues its business activities in the field of construction and project finance, while conservatively examining the profitability of the transactions and the integration of financial institutions for dispersing credit risk in large transactions, while examining the situation of the real estate market on a current basis. 

    Additional key data for first three months of 2016:

    The balance of liquid assets (cash, bank deposits and securities) as of March 31, 2016, amounted to NIS 3,442 million, (of which cash and bank deposits amounted to approximately NIS 2,342 million), compared to NIS 3,852 million (of which cash and bank deposits amounted to NIS 2,072 million) at the end of 2015, a decrease of 11%, deriving mainly from selling bonds in the available for sale portfolio. 
    Net credit balance to the public, as of March 31, 2016, amounted approximately to NIS 10,010 million compared to NIS 9,889 million at the end of 2015, an increase of approximately 1%. 
    The balance of deposits by the public as of March 31, 2016, amounted to NIS 10,833 million, compared to NIS 11,019 million at the end of 2015, a decrease of approximately 2%.
    The balance of bonds and deferred debt notes as of March 31, 2016, amounted to NIS 1,567 million (of which the balance of deferred debt notes amounted to NIS 402 million) compared to NIS 1,635 million at the end of 2015 (of which the balance of deferred debt notes amounted to NIS 406 million), a decrease of approximately 5% deriving from the repayment of bonds and deferred debt notes. 
    The balance of public deposits bonds and deferred debt notes, as of March 31, 2016, amounted to approximately NIS 12,400 million compared to NIS 12,654 million at the end of 2015.
    The Bank's equity as of March 31, 2016, amounted to approximately NIS 790.3 million compared to NIS 784.0 million at the end of 2015.
    Total balance sheet, as of March 31, 2016, amounted to approximately NIS 13,795 million compared to NIS 14,220 million at the end of 2015.

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2015

  • Bank of Jerusalem publishes its financial statements as of September 30, 2015
    Bank of Jerusalem presents an increase in interest income, net increase in the consumer credit balance and increase in fees from activity in securities. Net income for the first nine months of 2015 amounted to NIS 42.3 million compared to NIS 50.3 million in the correspondi...

    Bank of Jerusalem presents an increase in interest income, net increase in the consumer credit balance and increase in fees from activity in securities.
    Net income for the first nine months of 2015 amounted to NIS 42.3 million compared to NIS 50.3 million in the corresponding period last year (and compared to NIS 45.3 million excluding the income at the end of a past debt collection process of NIS 8.0 million (before tax effect) which was recorded in the corresponding period last year).
    Net profit return on average equity capital for the first nine months of 2015 was 7.5% compared to 9.6% in the corresponding period last year (and compared to 8.7% excluding the income at the end of a past debt collection process).
    Interest income, net in the first nine months of 2015 totaled NIS 249.7 million compared to NIS 234.4 million in the corresponding period last year – an increase of approximately 7%. The growth results from an increase in consumer credit balance and lower cost of raising funds.
    Credit loss expenses for the first nine months of 2015 amounted to NIS 26.0 million compared to NIS 12.8 million in the corresponding period last year. The main change derives from an income at the end of a past debt collection process of NIS 8.0 million which was recorded in the corresponding period last year, and from an increase in the provision for retail credit. 
    Rate of expenses for credit losses for the period reported on an annual basis, of the total credit to the public (including off-balance sheet credit risk) is 0.36%, compared to 0.27% in the corresponding period last year (excluding the income at the end of past debt collection process).
    Non-interest financing income for the first nine months of 2015 amounted to the expense of NIS 0.7 million compared to the income of NIS 15.2 million in the corresponding period last year. The main decrease derives from a decrease in the Nostro profits and fair value of financial derivatives.
    Fees for the first nine months of 2015 totaled NIS 96.0 million compared to NIS 85.0 million in the corresponding period last year. The increase of 13% mainly stems from an increase in fees from securities activity. 
    Other income for the first nine months of 2015 totaled NIS 9.4 million compared to NIS 8.6 million in the corresponding period last year, an increase of 10%.
    Operating and other expenses for the first nine months of 2015 amounted to NIS 265.8 million, compared to NIS 255.1 million in the corresponding period last year, an increase of approximately 4%. The increase is mainly due to an increase in maintenance, depreciation and computing expenses in view of the impact of the bank's strategic plan implementation.
    The Bank's core Tier I capital to risk components ratio as of September 30, 2015, is 9.5%. As for the consumer credit area, the bank continues to operate according to its strategic plan, a measure that began in 2010 which results in a gradual diversification of the bank's credit portfolio, which is concentrated in mortgages.
    Since 2010, credit has been provided to a large number of clients, and the number of borrowers continued to grow, while improving the quality of credit underwriting. The Bank considers this area as generating a significant growth in profitability.
    The Bank continues its business activities in the field of construction and project finance, while conservatively examining the profitability of the transactions and the integration of financial institutions for dispersing credit risk in large transactions, while examining the situation of the real estate market on a current basis. 
    In 2013, the Bank of Jerusalem acquired the brokerage activity of Clal Finance. This transaction has increased the scope of the Bank's capital market activity, and allowed entering into other areas of activity in which the bank did not operate in the past, while offering its customers the most advanced services in the area. Following the acquisition of the company and its merger into the Bank's activity, the Bank's brokerage activity increased significantly and the income increased significantly from fees in this area.
    At the end of 2014, due to the changes supporting the regulatory environment, the Bank launched the possibility of opening an account online for the purpose of providing a loan for new customers without requiring the customers' physical appearance in the branch. The Bank considers this channel to be an important growth engine for its development without the need for a substantial increase in physical branch deployment.  

    Additional key data for first nine months of 2015:

    Balance of liquid assets (cash, bank deposits and securities) as of September 30, 2015, amounted to NIS 3,770 million, (of which cash and bank deposits amounted to approximately NIS 2,229 million), compared to NIS 4,158 million (of which cash and bank deposits amounted to NIS 3,278 million) at the end of 2014, a decrease of 9%, deriving mainly from decrease in the balance of securities lent.

    Net credit balance to the public, as of September 30, 2015, amounted approximately to NIS 9,860 million compared to NIS 9,567 million at the end of 2014, an increase of approximately 3% primarily from credit.
    Balance of deposits by the public as of September 30, 2015, amounted to NIS 11,119 million, compared to NIS 10,977 million at the end of 2014, an increase of approximately 1%.
    Balance of bonds and deferred debt notes as of September 30, 2015 amounted to NIS 1,431 million (of which the balance of deferred debt notes amounted to NIS 411 million) compared to NIS 1,503 million at the end of 2014 (of which the balance of deferred debt notes amounted to NIS 482 million), a decrease of approximately 5% deriving from the repayment of bonds and deferred debt notes. 
    Total balance of deposits by the public, bonds and deferred debt notes, as of September 30, 2015, amounted to approximately NIS 12,550 million compared to NIS 12,480 million at the end of 2014.
    The Bank's equity as of September 30, 2015, amounted to approximately NIS 764.5 million compared to NIS 736.7 million at the end of 2014.
    Total balance sheet, as of September 30, 2015, amounted to approximately NIS 14,031 million compared to NIS 14,069 million at the end of 2014.

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  • Jerusalem Bank publishes its financial statements as of June 30, 2015
    Jerusalem Bank presents its continued core profitability, an increase of 9% in net interest income and increase of 22% in fees from expanding the bank's capital market activity.   Net income for the first six months of 2015 amounted to NIS 31.8 million compared t...

    Jerusalem Bank presents its continued core profitability, an increase of 9% in net interest income and increase of 22% in fees from expanding the bank's capital market activity.
     
    Net income for the first six months of 2015 amounted to NIS 31.8 million compared to NIS 34.4 million in the corresponding period last year. (compared to NIS 29.4 million net of an income at the end of a past due debt collection process of NIS 8.0 million (before tax effect) which was recorded in the corresponding period last year.
     
     
    Net income yield over average equity was 8.7% compared to 10.0% in the corresponding period last year (and compared to 8.5% net of an income at the end of a past due debt collection process which was recorded in the corresponding period last year. It is indicated that the yield to equity increased (net of an income from debt collection last year) despite the absence of Nostro profits in the first half due to a decrease in the price of government bonds in the second quarter. 
     
    Interest income, net, for the first six months of 2015 amounted to NIS 166.3 million compared to NIS 151.9 million in the corresponding period last year – an increase of 9%. The increase derives from the continued improvement in margins, from increase in the consumer credit balance and from lowering the cost of raising sources. 
     
    Credit loss expenses for the first six months of 2015 amounted to NIS 13.8 million compared to NIS 4.5 million in the corresponding period last year. The main change derives from an income at the end of a past debt collection process of NIS 8.0 million which was recorded in the corresponding period last year. Total credit loss expenses were 0.29% of the outstanding credit. 
     
    Non-interest financing income for the first six months of 2015 amounted to NIS 0.3 million compared to NIS 9.9 million in the corresponding period last year. The main decrease derives from a decrease in the Nostro profits. 
     
    Fees for the first six months of 2015 totaled NIS 67.9 million compared to NIS 55.6 million in the corresponding period last year, an increase of 22%. The increase stems mainly from fees for securities trading activity, resulting from a significant expansion in the area as a result of the sharp growth of the bank's brokerage activity. 
     
    Operating and other expenses for the first six months of 2015 amounted to NIS 181.2 million, compared to NIS 166.6 million in the corresponding period last year, an increase of 9%. The increase is mainly due to an increase in depreciation and computing expenses in view of the impact of implementing the bank's strategic plan and from an increase in wages, whereas some seasonal and others are for a variable compensation to employees. 
     
    The ratio of core capital to risk components of the bank is 9.7% compared to 9.6% at the end of 2014.

    In the area of consumer credit, the bank continues to operate according to its strategic plan, a measure that began in 2010 which results in a gradual diversification of the bank's credit portfolio which is concentrated in mortgages.
     
    Since 2010, credit is extended to a large scope of customers and the number of borrowers continued to grow while improving the quality of credit underwriting. The bank considers this area as a significant growth engine for its profits.

    The bank continues its business activities in the field of construction and project finance, while conservatively examining the profitability of the transactions and the integration of financial institutions for dispersing credit risk in large transactions, while examining the situation of the real estate market on a current basis.
     
    In 2013, the Jerusalem Bank acquired the brokerage activity of Clal Finance. This transaction has increased the scope of the bank's capital market activity while entering other areas of activity in which the bank did not operate in the past, while as such offering its customers the most advanced services in the area. Following the acquisition of the company and its merger into the bank's activity, the bank's brokerage activity increased significantly and the income increased significantly from fees in this area.
     
    At the end of 2014, due to the changes supporting the regulatory environment, the bank launched the possibility of opening an account online for the purpose of receiving a loan for new customers without requiring the customers' physical appearance in the branch. The bank considers this channel an important growth engine for its development without the need for a substantial increase in physical branch deployment. 
     

    Other key data for first six months of 2015:

    The balance of liquid assets (cash, bank deposits and securities) as of June 30, 2015, amounted to NIS 3,816 million, (of which cash and bank deposits of approximately NIS 2,325 million), compared to NIS 4,158 million (of which cash and bank deposits of NIS 3,278 million) at the end of 2014, a decrease of 8%, deriving mainly from decrease in the balance of securities lent.
     
    Net credit balance to the public, as of June 30 2015, amounted approximately to NIS 9,600 million compared to NIS 9,567 million at the end of 2014.

    The balance of deposits from the public as of June 30, 201, amounted on to NIS 10,926 million, compared to NIS 10,977 million at the end of 2014.
     
    The balance of debentures and deferred notes amounted on June 30, 2015 to NIS 1,496 million (of which the balance of deferred notes amounted to NIS 413 million) compared to NIS 1,503 million at the end of 2014 (which the balance of deferred notes amounted to NIS 482 million).

    Total balance of deposits from the public debentures and deferred notes amounted on June 30, 2015 to NIS 12,422 compared to NIS 12,480 million at the end of 2014.

    The Bank's equity as of June 30, 2015 amounted to approximately NIS 757.5 million compared to NIS 736.7 million at the end of 2014. The increase is primarily due to a net profit of NIS 31.8 million that was recorded in the first half of the year. 

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  • Bank of Jerusalem Publishes the Financial Statements for the First Quarter of 2015
    Presents a Yield of 9.8% - Continued Growth in Profitability   Uri Paz: "Bank of Jerusalem is continuing to improve the profitability as a result of the implementation of the strategic plan"   Net Income for the first three months of FY'2015 totaled NIS 17.7 million compar...

    Presents a Yield of 9.8% - Continued Growth in Profitability
     
    Uri Paz: "Bank of Jerusalem is continuing to improve the profitability as a result of the implementation of the strategic plan"
     
    Net Income for the first three months of FY'2015 totaled NIS 17.7 million compared to NIS 19.9 million in the comparative period last year (compared with NIS 14.9 million after eliminating income from the termination of the process of the collection of a past debt of NIS 8.0 million (before the tax effect), which was recorded in the comparative period last year).
     
    The average Net earnings yield on equity was 9.8% for the first quarter of FY'2015, compared to 11.8% in the comparative period in the previous year (compared with 9.0% eliminating income from the termination of the process of the collection of a past debt).
     
    In the first three months of 2015 the net interest income totaled NIS 79.7 million compared to NIS 75.1 million in the comparative period in the previous year – an increase of approximately 6%. The growth results from continued improvement in profitability, from an increase in the Consumer Credit balance and from a lowering of the cost of raising funds.
     
    Provision of credit losses in the first three months of 2015, totaled NIS 5.0 million compared to NIS 0.7 million in the comparative period in the previous year and compared with expenses of NIS 7.3 million after eliminating income from the termination of the process of the collection of a past debt of NIS 8.0 million, which was recorded in the comparative period last year.
     
    Ratio of expenses in respect of credit losses for the period under review, on an annualized basis for the total net credit to the public (including off-balance sheet credit risk) is 0.21%, compared to 0.30% in the comparative period in the previous year (after eliminating income from the termination of the process of the collection of a past debt).
     
    Commissions in the first three months of 2015 totaled NIS 37.4 million, compared with NIS 29.6 million in the comparative period last year. The increase of NIS 7.1 million derived primarily from commissions on securities transactions.
     
    Operating and Other Expenses in the first three months of 2015 totaled NIS 91.1 million compared to NIS 81.8 million in the comparative period in the previous year – an increase of approximately 11%. The increase derives primarily from an increase in Salary Expenses, as a result of the cost of variable remuneration as well as an increase in Depreciation and Computer Expenses against the background of the impact of the implementation of the bank's strategic.
     
    Salary Expenses in the first three months of 2015 totaled NIS 43.1 million compared to NIS 39.3 million in the comparative period in the previous year. The increase derived primarily from the cost of variable remuneration.
     
    The provision for Taxes on Operating Income in the first three months of 2015 totaled NIS 8.9 million compared to NIS 10.1 million in the comparative period in the previous year. The decrease derived primarily from a decrease in income before taxes on income.
    The bank's Tier 1 Capital Adequacy Ratio as of March 31, 2015, is 9.8%, whereas total Capital Adequacy Ratio was 14.1%.
     
    In the Consumer Credit segment, the bank is continuing in accordance with its strategic plan, a process which began in 2010 and is leading to a gradual diversification of the bank's credit portfolio, which is focused on mortgages.
     
    Since 2010, credit has been extended to a broad range of customers and the quantity of debtors has continued to grow, with an improvement in the quality of the underwriting process for credit. The bank considers this area to be a significant engine of growth for its profits.
     
    The bank continues with its business activity in the field of the accompaniment of projects and construction, while conservatively testing the profitability of transactions, using institutional bodies in order to spread credit risks in large transactions, and it continuously analyzes the state of the real- estate market.
     
    In 2013, Bank of Jerusalem acquired Clal Finance Ltd.'s brokerage operations. This step expanded the scope of the bank's operations in capital markets by entering additional areas of activity that are new to the bank, and thereby offering clients the most advanced services in the field. Following the acquisition of the Company and its merger into the bank's operations, the bank's activity in the brokerage field has increased significantly.
     
    At the end of the year 2014, in the light of the changes supporting the regulatory environment, the Bank launched the possibility of opening an internet account for the purpose of the receipt of loans to new customers, without their needing to go to a branch. The bank regards this channel as being an important engine for growth for its development without requiring a significant increase in the physical spread of branches. 

    Additional main data for the first three months of 2015:

    The balance of cash and bank deposits as of March 31, 2015
    amounted to approximately NIS 3,161 million compared to NIS 3,278 million at the end of 2014, a decrease of approximately 4%.
     
    The balance of credit to the public, net amounted to approximately NIS 9,521 million as of March 31, 2015, compared to NIS 9,567 million at the end of 2014.
     
    The balance deposits by the public amounted to approximately NIS 11,125 million as of March 31, 2015, compared to NIS 10,977 million at the end of 2014 – an increase of approximately 1%.
     
    The balance of bonds and deferred debt notes amounted to approximately NIS 1,421 million as of March 31, 2015 (of which the balance of deferred debt notes was NIS 478 million), compared to NIS 1,503 million at the end of 2014 (of which the balance of deferred debt notes was NIS 482 million) – the decrease derived from routine repayments of bonds.
     
    The balance deposits by the public, bonds and deferred debt notesamounted to approximately NIS 12,546 million as of March 31, 2015, compared to NIS 12,480 million at the end of 2014.
     
    The balance of borrowed securities amounted to approximately NIS 246 million as of March 31, 2015, compared to NIS 583 million at the end of 2014.
     
    The bank's equity amounted to approximately NIS 757.7 million as of March 31, 2015. compared to NIS 744.9 million at the end of 2014.
     
    Uri Paz, the CEO of the Bank of Jerusalem: "The Bank of Jerusalem continues to see an increase in income, and the continuation of the trend in its profitability, which is a direct result of the strategy that has been implemented in recent years – turning the Bank of Jerusalem from a mortgage bank to a full commercial bank. As can be seen in the financial statements that are being published at the present time, the Bank of Jerusalem is one of the most profitable banks in the banking system".

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2014

  • Bank of Jerusalem publishes its Financial Statements for the Third Quarter of 2014
    Net income for the first nine months of FY 2014 totaled NIS 51.2 million, as compared with NIS 8.9 million during the first nine months of FY 2013.  The increase derives primarily from an increase in net interest income and a decrease in credit losses.   Average net earnings...

    Net income for the first nine months of FY 2014 totaled NIS 51.2 million, as compared with NIS 8.9 million during the first nine months of FY 2013.  The increase derives primarily from an increase in net interest income and a decrease in credit losses.
     
    Average net earnings yield on equity was 9.7% as compared with 1.7% during the first nine months of FY 2013.
     
    Net interest income totaled NIS 234.4 million in the first nine months of FY 2014, as compared with NIS 191.1 million during the first nine months of FY 2013 - an increase of 23%. The increase derives primarily from continued improvement in mortgage margins, an increase in the balance of consumer credit and a reduction in the cost of recruiting sources of finance.

    Provisions for credit losses in the first nine months of FY 2014 totaled NIS 12.8 million as compared with an amount of NIS 47.1 million during the first nine months of FY 2013. The decrease derives primarily from a non-recurring expense of NIS 19.2 million, which was recorded in first nine months of FY 2013 following the implementation of a group provision for housing at a rate of 0.35% in  accordance with directive issued by the Bank of Israel on March 21, 2013, as well as from an improvement in collection and risk-management processes.  In addition, during the first half of  FY 2014, income of NIS 8.0 million was recorded at the end of a debt collection process.

    Ratio of expenses in respect of credit losses, to the total credit extended to the public (including off-balance sheet credit risk) is 0.18% on an annualized basis for the first nine months of the year, as compared with 0.64% during the first nine months of FY 2013.

    Financing income other than from interest for the first nine months of FY 2014, totaled NIS 15.2 million as compared with NIS 10.1 million during the first nine months of FY 2013, an increase of 50%, which derived primarily from an increase in profits on the nostro.

    Commissions for the first nine months of FY 2014 totaled NIS 85.0 million, as compared with NIS 66.7 million during the first nine months of FY 2013, an increase of 27%.  The increase derives primarily from commissions for transactions in securities, which have increased significantly as a result of the acquisition of Clal Finance Batucha Investment Management Ltd..

    Other income totaled NIS 8.6 million in the first nine months of FY 2014, as compared with NIS 0.8 million during the first nine months of FY 2013. The increase derives primarily from a decrease in deferred income, which was recorded on the acquisition of Clal Finance Batucha Investment Management Ltd. For details, see the section on significant events during the reporting period, which follows.

    Operating and Other Expenses totaled NIS 253.6 million in the first nine months of FY 2014, as compared with NIS 211.9 million during the first nine months of FY 2013 - an increase of 20%. Approximately half of the increase resulted from the acquisition of Clal Finance Batucha Investment Management Ltd., and approximately half of the increase derives primarily from depreciation and computing expenses, against the background of the implementation of the bank´s strategic plan.

    Salary Expenses totaled NIS 121.3 million  in the first nine months of FY 2014 (after eliminating salary expenses arising from the acquisition of Clal Finance Batucha Investment Management Ltd., in an amount of NIS 108.9 million) - as compared with NIS 110.8 million during the first nine months of FY 2013, where the decrease in the salary expenses (after eliminating salary expenses arising from the acquisition of Clal Finance Batucha Investment Management Ltd.) being a result of an efficiency drive that was implemented by the bank in 2013.

    The bank's Tier 1 Capital Adequacy Ratio was 9.7% as of September 30, 2014 and the total capital adequacy ratio stood at 14.5%.

    In the consumer credit segment, the bank is continuing in accordance with its strategic plan, a move that began in 2010 and is leading to a gradual diversification of the bank's credit portfolio, which is focused on mortgage loans.

     Since 2010 credit has been extended to a wide range of customers and the quantity of borrowers continues to grow, in tandem with an improvement in the underwriting of the quality of the credit.  The bank views this field as a significant engine for growth in its profitability.

    The bank is continuing with the business activity in the field of the accompaniment of projects and construction, whilst conservatively assessing the profitability of the transactions, and joining with institutional bodies in order to disperse the credit risk on large transactions, while closely monitoring the situation in the real estate market.

     
    In 2013, Bank of Jerusalem acquired Clal Finance Ltd.'s brokerage operations. This move has increased the scale of the bank's capital market activities, by entering additional fields of operations in which the Bank had not operated previously, and in the meantime, the bank offers its customers the most advanced services in the field. Following the acquisition of the company and its merger into the Bank´s operations, the bank's brokerage activities have increased significantly.

    Additional key data for the first nine months of FY 2014:

     The balance of liquid assets (cash, bank deposits and securities) totaled NIS 3,568 million (of which cash and bank deposits totaled NIS 2,499 million) as of September 30, 2014, as compared with NIS 3,510 million (of which cash and bank deposits totaled NIS 2,833 million) at the end of 2013, an increase of 2%.
     
    The balance of credit to the public, net totaled NIS 9,568 million as at 30 September 2014- as compared with NIS 9627 million at the end of 2013 - a decrease of 1%.

    The balance of deposits by the public totaled NIS 10,748 million as at September 30, 2014, as compared with NIS 11,071 million at the end of 2013 - a decrease of 3%. The said decrease was the result of designed process of the reduction of excess liquidity, which had accumulated at the end of 2013.

    The balance of bonds and deferred debt notes totaled NIS 1,284 million (of which the balance of deferred debt notes totaled NIS 495 million)  as at September 30, 2014 as compared with NIS 1,406 million at the end of 2013 (of which the balance of deferred liability notes totaled NIS 537 million) - a decrease of 9%. The decrease derives primarily from the repayment of debt notes for the year. 

    The total balance of deposits from the public, bonds, and deferred debt notes totaled NIS 12,032 million as at September 30, 2014, as compared with NIS 12,477 million at the end of 2013, a decrease of 4%.

    The balance of securities that have been let totaled NIS 459 million as at September 30, 2014, as compared with NIS 28 million at the end of 2013. The increase resulted from the expansion of operations in 2014.

    The bank's equity totaled NIS 735.4 million as at September 30, 2014. 

    Uriel Paz, the Chief Executive Officer of Bank of Jerusalem states:"The financial statements reflect the success in the process of the conversion of Bank of Jerusalem into a full retail bank, which has created a significant alternative for consumers. The results show a sustainable growth with continuing growth in revenues, together with increased efficiency.

    At the present time, Bank of Jerusalem is completing the preparations for internet banking and the bank will be the first one to declare the possibility of opening an account so as to take out a consumer loan in the first stage, directly from the customer's home computer and without the need to go to a branch. 

    Bank of Jerusalem is prepared for the era of internet banking and views this as a significant step towards increasing the level of competition in the banking system".

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  • Bank of Jerusalem Publishes the Financial Statements for the Second Quarter of 2014
    Net Income for the first six months of FY'2014 totaled NIS 34.9 million compared to NIS 2.4 million in the first half of FY' 2013. Net income increased by approximately 138%, after eliminating non-recurring expense related to credit losses in the previous year, which amounted...

    Net Income for the first six months of FY'2014 totaled NIS 34.9 million compared to NIS 2.4 million in the first half of FY' 2013.
    Net income increased by approximately 138%, after eliminating non-recurring expense related to credit losses in the previous year, which amounted to NIS 19.2 million (NIS 12.2 million after tax effects deduction). The growth in net income comes primarily from continued growth in revenues, compared to moderate growth in expenses, as a result of achieving the long-term strategic plan goals and furthermore most of the planned increase in expenses due to the strategic plan already been recorded.
     
    The average Net earnings yield on equity was 10.1% for the first half of FY'2014, compared to 0.7% in the comparative period in the previous year. 

    In the first six months of 2014 the net interest income totaled NIS 151.9 million compared to NIS 124.1 million in the comparative period in the previous year – an increase of approximately 22%. The growth results from continued improvement in Credit for Mortgages margins, an increase in Consumer Credit balance and lower cost of raising funds. 

    Provision of credit losses in the first six months of 2014, totaled NIS 4.5 million compared to NIS 37.8 million in the comparative period in the previous year. Most of the reduction results from a non-recurring expense registered in the comparative period in the previous year, which derived from a collective provision for housing in the rate of 0.35%, following a directive issued by Bank of Israel on March 21, 2013, which totaled NIS 19.2 million and from improvements in the process of collecting and managing risk. Furthermore, income of NIS 8.0 million was recorded in the first half of the year at as a result of debt collection process.
     
    Ratio of expenses in respect of credit losses for the period under review, on an annualized basis for the total net credit to the public (including off-balance sheet credit risk) is 0.09%, compared to 0.57% in the comparative period in the previous year. 
     
    Operating and Other Expenses in the first six months of 2014 totaled NIS 165.7 million compared to NIS 139.9 million in the comparative period in the previous year – an increase of approximately 18%. About half of the growth derives primarily from an increase in Depreciation and Computer Expenses against the background of the bank's strategic plan and about half of the expenses should be seen against the background of the increase in activity as a result of the acquisition of the Clal Betucha Company.
     
    Salary Expenses in the first six months of 2014 totaled NIS 79.6 million (after eliminating salary expenses resulting from the acquisition of Clal Betucha, which amounted to NIS 72.7 million) compared to NIS 74.2 million in the comparative period in the previous year. The decrease in Salary Expenses (after the elimination of the expenses in respect of Clal Betucha) results from the efficiency measures instituted by the bank in 2013.
     
    The bank's Tier 1 Capital Adequacy Ratio as of June 30, 2014 is 9.6%, whereas total Capital Adequacy Ratio was 14.4%.
     
    In the Consumer Credit segment, the bank is continuing in accordance with its strategic plan, a process which began in 2010 and is leading to a gradual diversification of the bank's credit portfolio, which is focused on mortgages.
     
    In the past year the volume of portfolios and quantity of debtors has continued to grow, with an improvement in the quality of the underwriting process of credit. The bank considers this area to be a significant engine of growth for its profits.
     
    The bank continues with its business activity in the field of the accompaniment of projects and construction, while conservatively testing the profitability of transactions, using institutional bodies in order to spread credit risks in large transactions, and it continuously analyzes the state of the real- estate market.
     
    In 2013, bank of Jerusalem acquired Clal Finance Ltd.'s brokerage operations. This step expanded the scope of the bank's operations in capital markets by entering additional areas of activity that are new to the bank, and thereby offering clients the most advanced services in the field. 

    Additional main data for the first six months of 2014:

    The balance of liquid assets (cash, bank deposits and securities) as of June 30, 2014 amounted to approximately NIS 3,210 million compared to NIS 3,510 million at the end of 2013, a decrease of approximately 9%. This is a result of a planned process to reduce the liquidity surplus, which had accumulated at the end of 2013.
     
    The balance of credit to the public, net amounted to approximately NIS 9,575 million as of June 30, 2014, compared to NIS 9,627 million at the end of 2013 – a decrease of approximately 1%.
     
    The balance deposits by the public amounted to approximately NI S 10,775 million as of June 30, 2014, compared to NIS 11,071 million at the end of 2013 – a decrease of approximately 3%.
     
    The balance of bonds and deferred debt notes amounted to approximately NIS 1,286 million as of June 30, 2014, compared to NIS 1,406 million at the end of 2013 – a decrease of approximately 6%.
     
    Balance of borrowed securities amounted to approximately NIS 145 million as of June 30, 2014, compared to NIS 28 million at the end of 2013. The increase derives from the expansion of the operations in the capital market field, following the acquisition of Clal Finances Ltd.'s brokerage operations.
     
    The bank's equity amounted to approximately NIS 726 million as of June 30, 2014.

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  • Bank of Jerusalem Publishes its Financial Statements
    Net profit in the first three months of 2014 amounted to NIS 20.1 million, compared to a net profit of NIS 5.6 million in the corresponding period last year. The increase of 259% is primarily due to the continued sharp growth in revenues, against a moderate growth in expense...

    Net profit in the first three months of 2014 amounted to NIS 20.1 million, compared to a net profit of NIS 5.6 million in the corresponding period last year. The increase of 259% is primarily due to the continued sharp growth in revenues, against a moderate growth in expenses. This was due to the continued leverage of the bank’s potential revenue growth, as a result of the long term strategic plan, while most of the increase in expenses derived there from have already been recorded by the bank in the past.
     
    Average net profit return on equity amounted to 12%, compared to 3.3% in the corresponding period last year.
    In the first three months of 2014, net interest income amounted to NIS 75.1 million, compared to NIS 59.4 million in the corresponding period last year - an increase of approximately 26%. The increase is due to the continued improvement in interest income from mortgages, the increase in the balance of consumer credit and the reduced cost of raising financial sources.

    Expenses in respect of credit losses
    for the first three months of 2014 amounted to income of NIS 0.7 million, compared to expenses of NIS 8.6 million in the corresponding period last year. The decrease is primarily due to the improvement in collection and risk management processes and, additionally, revenues from the collection of past debts were recorded in the amount of NIS 8.0 million.
     
    The ratio of expenses in respect of credit losses for the annually reviewed period to total public credit (including off-balance sheet credit risks) from the collection of past debts amounted to 0.30%, compared to 0.39% in the corresponding period last year.
     
    Operating and other expenses in the first three months of 2014amounted to NIS 81.4 million, compared to NIS 67.9 million in the corresponding period last year; after the neutralization of expenses in respect of the acquisition and merger of Clal Batucha, expenses amounted to NIS 74.1 million, representing an increase of only 9%. The increase results from an increase in depreciation, computing and advertising expenses, due to the implementation of the bank’s strategic plan.
     
    Payroll expenses in the first three months of 2014 amounted to NIS 38.9 million (neutralized by payroll expenses due to the acquisition of Clal Batucha, in the amount of NIS 35.4 million), compared to NIS 37.4 million in the corresponding period last year (neutralized by the Clal transaction), as a result of the increased efficiency measures implemented by the bank in 2013.
     
    The ratio of core capital to the bank’s risk components amounted to 9.4%, while the ratio of capital to risk components amounted to 14.2%.
     
    In the consumer credit segment, the bank continues  operating according to its strategic plan - a process which began in 2010, and which is gradually resulting in the diversification of the bank’s credit portfolio, which is mortgage-focused.
    In the past year, the scope of the portfolio and of borrowers continued to increase, with an improvement in credit quality underwriting. The bank considers this segment to be a significant profit growth engine.
    The bank is continuing its business operations in the project accompaniment and construction segment, while conservatively evaluating the profitability of transactions and the integration of institutional entities, in order to distribute its credit risk over large transactions, while routinely evaluating the state of the real estate market.
    Additionally, in August 2013, the Bank of Jerusalem announced its acquisition of the brokerage operations of Clal Finance, which will be merged into the bank’s stock exchange member company. In December 2013, the process of acquiring and merging the operations into the bank was completed, and in May 2014, the operational merger of the acquired activity into the bank was completed.
    This process is expected to increase the scope of the bank’s operations in the capital market segment, while entering into additional areas of operation in which the bank did not previously operate, thereby allowing it to offer its customers the most advanced services in the segment.
     

    Additional main data for the first three months of 2014:

    The balance of public credit, net, amounted, as of March 31, 2014, to approximately NIS 9,593 million, compared to approximately NIS 9,627 million at the end of 2013.

    The balance of liquid assets (cash, deposits in banks and securities)
    amounted, as of March 31, 2014, to approximately NIS 3,617 million, compared to approximately NIS 3,510 million at the end of 2013 - an increase of approximately 3%.
     
    The balance of cash and deposits in banks, amounted, as of March 31, 2014, to approximately NIS 2,498 million, compared to approximately NIS 2,833 million at the end of 2013 - a decrease of approximately 12%.
     
    The balance of securities amounted, as of March 31, 2014, to approximately NIS 1,119 million, compared to approximately NIS 677 million at the end of 2014, an increase of approximately 63%.
     
    The balance of public deposits, amounted, as of March 31, 2014, to approximately NIS 10,855 million, compared to approximately NIS 11,071 million at the end of 2013, a decrease of approximately 2%.
     
    The balance of debentures and deferred liability notes amounted, as of March 31, 2014, to approximately NIS 1,316 million (of which – a balance of deferred liability notes in the amount of NIS 514 million), compared to approximately NIS 1,406 million at the end of 2013 (of which – a balance of deferred liability notes in the amount of NIS 537 million), a decrease of approximately 6%. The decrease is primarily due to debenture repayments during the reporting period.
     
    The bank’s equity as of March 31, 2014 amounted to approximately NIS 717 million.

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2013

  • Bank of Jerusalem has published it's financial statements for the first nine months of 2013
    The Bank presents accelerated growth in financing income in conjunction with a decrease in net profit, as a result of the Bank of Israel directive to execute a one-time group provision for mortgages.  In the first nine months of 2013, the net interest income totaled NIS...

    The Bank presents accelerated growth in financing income in conjunction with a decrease in net profit, as a result of the Bank of Israel directive to execute a one-time group provision for mortgages. 

    In the first nine months of 2013, the net interest income totaled NIS 192.4 million, compared with NIS 171.1 million for the corresponding period last year – an increase of 12%. The net profit for the first nine months of 2013 declined to NIS 8.9 million from NIS 33.5 million for the corresponding period last year, mainly due to the Bank of Israel directive dated March 21, 2013, designated for the entire banking industry, aimed at creating additional capital buffers, pursuant to which the Bank recorded a one-time group provision totaling NIS 19.2 million.

     The ratio of expenditure for credit losses to the total net credit provided to the public (including off-balance sheet credit risks) for the period under review, excluding the one-time provision, was 0.40% on an annualized basis, compared with 0.37% at the end of 2012.

    As mentioned, at the same time, net interest income continued to increase. In the first nine months of 2013, the income from interest totaled NIS 192.4 million, compared with NIS 171.1 million for the corresponding period last year – an increase of 12%. The increase results from the continued improvement in mortgage margins, from an increase in consumer credit reserves as well as from  a reduction in costs of recruiting resources.

     The average net profit return on equity capital was 1.7% for the first nine months of 2013, compared with 6.8% for the corresponding period last year.
     
    The Bank’s capital adequacy ratio stood at 9.5% at the end of September and the ratio of core capital to risk components stood at 13.4%. 

    In July 2013, the Bank announced a restructuring program that is expected to result in a significant decrease in expenditure. The Bank predicts that the implementation of the restructuring program, which includes, inter alia, a cutback in posts at the Head Office and a freeze on salaries for a period of two years, is expected to result in an annual pretax savings of approximately NIS 15 million in payroll expenditure at the Bank, which will generate an annual yield increase of some 1.5%.

    The Bank is continuing its accelerated growth in its retail activities. In the first nine months of 2013, the Bank continued to sign up thousands of new current account customers and to open innovative format video branches aimed at maximum service at particularly low costs to customers.

     In addition, the Bank of Jerusalem announced, in August 2013, its acquisition of  Clal Finances brokerage operation that will be merged with the Bank’s Stock Exchange Membership. The brokerage operation that was acquired includes some 8,000 private independent clients, and 180 large institutional clients from Israel and  foreign countries. This acquisition is expected to strengthen the Bank’s activities in the capital market and to allow it to offer its clients the most advanced services in this field. 

    Additional key figures for the first nine months of 2013:

    The net public credit balance totaled approximately NIS 9,683 million as at September 30, 2013, compared with approximately NIS 9,581 million at the end of 2012.

    The liquid assets balance (cash on hand, deposits at banks and securities) totaled approximately NIS 2,820 million as of September 30, 2013, compared with approximately NIS 2,524 million at the end of 2012 – an increase of about 12%. The bulk of the growth results from an increase in the balance of the Bank’s resources.

    The cash on hand and deposits at banks balance totaled approximately NIS 1,910 million as of September 30, 2013, compared with approximately NIS 1,361 million at the end of 2012 – an increase of about 40%.

    The securities balance totaled approximately NIS 910 million as of September 30, 2013, compared with some NIS 1,163 million at the end of 2012 – a decrease of about 22%.

    The public deposits balance totaled approximately NIS 10,402 million as at September 30, 2013, compared with approximately NIS 9,814 million at the end of 2012 – an increase of about 6%.

     The balance of exchange traded notes and deferred liabilities deeds totaled approximately NIS 1,434 million as at September 30, 2013 (of which – the balance of deferred liabilities deeds totaled approximately NIS 480 million), compared with some NIS 1,581 million at the end of 2012 (of which – the balance of deferred liabilities deeds totaled approximately NIS 490 million), a decrease of about 9%. The bulk of the decrease results from redemptions of debentures during the report period.
     
    The Bank’s equity capital totaled approximately NIS 691 million as at September 30, 2013.
     
    Provisions for credit losses during the first nine months of 2013 totaled approximately NIS 48.4 million, compared with some NIS 20.2 million for the corresponding period last year. These provisions include the one-time group provision pursuant to the Bank of Israel directive.

    Non-interest financing income during the first nine months of 2013 totaled approximately NIS 10.1 million, compared with approximately NIS 17.2 million for the corresponding period last year, a decrease of some 41%. The bulk of the reduction was due to a decrease in proprietary trading  profits, which were relatively high last year.

     Operating and miscellaneous expenses during the first nine months of 2013 totaled approximately NIS 211.9 million, compared with approximately NIS 185.5 million for the corresponding period last year, an increase of some 14%. The bulk of the increase was due to an increase in salary expenditure, depreciation and computerization, which resulted from the implementation of the Bank’s strategic plan.

     

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  • Bank of Jerusalem Publishes its Financial Statements for the First Half of 2013
     During the first six months of 2013, interest income amounted to NIS 126.1 million, in comparison with NIS 112.0 million for the corresponding period last year - an increase of approx.13% Due to  new guidelines issued by the Bank of Israel to the entire  banking syst...

     During the first six months of 2013, interest income amounted to NIS 126.1 million, in comparison with NIS 112.0 million for the corresponding period last year - an increase of approx.13%

    Due to  new guidelines issued by the Bank of Israel to the entire  banking system on March 21, 2013 designed to create additional capital cushion, the Bank recorded a collective one-time provision in the amount of NIS 19.2 million. As a result, a decline in net profit was recorded in the first six months of 2013, to NIS 2.4 million, in contrast with NIS 25.3 million in the corresponding period last year.
     
    The ratio of expenses for credit losses in respect of the reviewed period, on an annual basis, to the total net credit to the public (including off-balance sheet credit risk), after neutralization of the one-time provision, is 0.43%, compared with 0.37% at the end of 2012. 
     
    At the same time, the growth in net interest income continued. During the first six months of 2013, interest income amounted to NIS 126.1 million, in comparison with NIS 112.0 million for the corresponding period last year - an increase of approx.13%. The increase is primarily attributed to a continued improvement in mortgage margins, an increase in the balance of consumer credit, and to a reduction in the cost of capital raising sources, inter alia, through an expansion of capital raising channels including the internet “closed system”.
    The average net profit return on equity was 0.7%, in comparison with 7.8% in the corresponding period last year.
     
    The Bank’s capital adequacy ratio was 13.7%, and the ratio of core capital to risk components was 9.6%.
     
    The Bank is continuing its accelerated growth around its retail activities. In the first half of 2013, the Bank continued to recruit thousands of new checking account customers, and to open video branches using the innovative platform designed to provide maximum customer service at especially low costs.
     
    In July 2013 (after the balance sheet date), the Bank announced the implementation of an efficiency-increasing process that aims to significantly reduce expenses and that is expected to contribute an increase of approx. 1.5% in return on equity next year.
     
    In addition, in August 2013, the Bank of Jerusalem announced its acquisition of the brokerage activity of "Clal Finance", which will be merged into the Bank’s stock exchange member company. The acquired brokerage activity includes approx. 8,000 independent private customers and approx. 180 large institutional customers from Israel and abroad. This acquisition is expected to reinforce the Bank’s activity in the capital markets sector and allow it to offer its customers the most advanced services in the field. 

    :Additional main data for the first half of 2013

    The net balance of credit to the public as of June 30, 2013, amounted to approx. NIS 9,608 million, in comparison with approx. NIS 9,581 million at the end of 2012.
     
    The balance of liquid assets (cash, deposits in banks and securities) as of June 30, 2013, amounted to approx. NIS 2,893 million, in comparison with approx. NIS 2,524 million at the end of 2012 - an increase of approx. 15%.  The increase is primarily attributed to the balance of the Bank’s sources.
     
    The balance of cash and deposits in banks as of June 30, 2013 amounted to approx. NIS 2,110 million, in comparison with approx. NIS 1,361 million at the end of 2012 - an increase of approx. 55%.
     
    The balance of securities as of June 30, 2013 amounted to approx. NIS 783 million, in comparison with approx. NIS 1,163 million at the end of 2012 - a decline of approx. 33%.
     
    The balance of public deposits as of June 30, 2013 amounted to approx. NIS 10,349 million, in comparison with approx. NIS 9,814 million at the end of 2012 - an increase of approx. 5%.
     
    The balance of liability certificates and deferred liability notes as of June 30, 2013 amounted to approx. NIS 1,486 million (of which - a balance of deferred liability notes in the amount of NIS 472 million), in comparison with approx. NIS 1,581 million at the end of 2012 (of which - a balance of deferred liability notes in the amount of NIS 490 million).  The reduction is primarily attributed to a partial repayment of bonds during the reporting period.
     
    The bank's equity as of June 30, 2013 amounted to approx. NIS 694 million.

    Expenses in respect of credit losses during the first six months of 2013 amounted to approx. NIS 39.8 million, in comparison with NIS 9.5 million in the corresponding period last year. The increase primarily resulted from the one-time provision described above.

     
    Non-interest financing income in the first six moths of 2013 amounted to approx. NIS 10.5 million, in comparison with approx. NIS 14.0 million in the corresponding period last year, a decline of approx. 25%. The decline is primarily attributed to a decline in nostro profits.
     
    Operating and other expenses in the first half of 2013 amounted to approx. NIS 139.9 million, in comparison with approx. NIS 124.7 million in the corresponding period last year, an increase of approx. 12%. The increase is primarily attributed to an increase in wage expenses and depreciation resulting from implementation of the Bank’s strategic plan.

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  • Bank of Jerusalem Publishes Its Financial Statements for the First Quarter of 2013​
    The Trend in Increasing Income (Financial Revenue) from Net Interest Continues: 11% Increase in Comparison to the Same Period Last Year (NIS 60.4 million vs. NIS 54.3 million) Net profit for the first three months of 2013, totaled NIS 5.6 million, compared to NIS 11.2 milli...

    The Trend in Increasing Income (Financial Revenue) from Net Interest Continues: 11% Increase in Comparison to the Same Period Last Year (NIS 60.4 million vs. NIS 54.3 million)

    Net profit for the first three months of 2013, totaled NIS 5.6 million, compared to NIS 11.2 million for the same period last year.

    The increase in income from net interest continues:  In contrast, expenses increased with the planning in the bank systems upgrade and its transformation into a full retail bank.

    The net rate of return on average equity was 3.3% compared to 7.0% during the previous year.

    The Capital Adequacy Ratio for the bank was 14.3% and the core capital to risk components ratio stood at 9.7%.
    The rise in financial revenue stems from the continued improvement of mortgage margins and an increase in the consumer credit balance, as well as lowered cost of funding, among others, attributable to expanding the same in bank branches, as well as through it's “closed Internet system.”
     
    The Bank continues to act according to its strategic plan, at the center which is the retail sector’s extensive growth while increasing the customer base and product packages, as well as services to households, while diversifying and dispersing it's retail activity areas, such as new current accounts, consumer credit, and deposits.  This Plan is based on a competitive environment analysis that indicates the positive potential for customer recruitment from households. This, in view of the centralization of banking systems on one hand, and, the increase in customer awareness and his/her readiness to improve his/her situation, on the other.

    Other main data for the first quarter of 2013:

    The net balance of public credit as at March 31, 2013, totaled NIS 9,650 million, compared to NIS 9,581 million at the end of 2012 – an increase of about 1%.
    The balance of liquid assets (cash, deposits in banks and securities) as at March 31, 2013, totaled NIS 2,493 million, compared to approximately NIS 2,524 million at the end of 2012 – a decrease of about 1%.
    The balance of cash and deposits in banks as at March 31, 2013, totaled approximately NIS 1,140 million, compared to approximately NIS 1,361 million at the end of 2012 – a decrease of about 16%.
    The balance of securities as at March 31, 2013, totaled approximately NIS 1,353 million, compared to approximately NIS 1,163 million at the end of 2012 – an increase of about 16%.
    The balance of public deposits as at March 31, 2013, totaled approximately NIS 9,959 million, compared to NIS 9,814 million at the end of 2012 – an increase of about 1%.
    The balance of liability certificates and deferred liability notes as at March 31, 2013, totaled approximately NIS 1,509 million (from this – a balance of deferred liability notes totaling NIS 483 million), in contrast with about NIS 1,581 million at the end of 2012 (from this – the balance of deferred liability notes totaling NIS 490 million).
    The bank's equity as at March 31, 2013, amounted to approximately NIS 699 million.
    Non-interest financing income for the first three months of 2013, totaled NIS 2.0 million, compared to NIS 3.8 million in the same period last year – a decrease of approximately 48%. The main decrease is attributed to a decline in Nostro profits.
    Expenses for credit losses for the first three months of 2013, totaled NIS 9.5 million, compared to NIS 3.2 million in the same period last year. The increase is primarily attributed to provisions for housing credit (during the period reviewed, the provision totaled NIS 1.3 million in comparison with a recording of cancellation of income (recovery) in this section last year of NIS 2.1 million), from an increase in the group provision for consumer credit following an increase in the portfolio and from Bank of Israel directives.

    The ratio of expenses for credit losses for the period reviewed on an annual basis for the total net public credit (including off-balance-sheet credit risk) is 0.39%, in comparison with 0.37% at the end of 2012.

    Operating and other expenses for the first three months of 2013, totaled NIS 68.1 million, compared to NIS 61.0 million in the same period last year – an increase of approximately 12%. The main increase derives from a rise in increased payroll and depreciation in light of implementation of the Bank’s strategic plan.

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2012

  • Bank of Jerusalem Publishes Financial Statements for the Third Quarter of 2012
    The Bank shows an increase of 107% in net profit in contrast with the same period last year. Moreover, the Bank shows a 40% increase in net interest income (financial revenue) in comparison to the same period last year (NIS 171.5 million vs. NIS 122.8 million) The net...

    The Bank shows an increase of 107% in net profit in contrast with the same period last year.

    Moreover, the Bank shows a 40% increase in net interest income (financial revenue) in comparison to the same period last year (NIS 171.5 million vs. NIS 122.8 million)

    The net profit for the first nine months of 2012 totaled NIS 33.5 million, compared to NIS 16.2 million for the same period last year (profit from last year's sale of the administrative building was neutralized), an increase of 107%, .

    The net yield on average equity was 6.8% compared to 3.5% for the same period previous year (profit from last year’s sale of the administrative building was neutralized). 

    The capital adequacy ratio for the bank was 13.7% and the core capital to risk components ratio stood at 9.8%.

    It should be noted that the bank’s core capital adequacy ratio is significantly higher than that of the entire banking system. If the bank had been operating in a similar capital adequacy environment as that of the banking system (at a rate of 8.4%), the yield for the first nine months of 2012 would have been 7.6%.

    The sharp 40% rise in financial revenue stems from the continued improvement of mortgage margins and an increase in consumer credit balance, as well as lowered costs of   funding , among others, attributed to expanding recruitment in bank branches and through its closed system for online deposits.

    After the balance sheet date, during October 2012, the bank began a gradual process for recruiting household current accounts. During 2013, the bank wishes to recruit thousands of new current accounts from both new and existing customers. For this purpose, it has formulated a valued proposition with sweeping exemption of fees on current accounts for Israeli residents.

     Current accounts  are  considered  anchor products and as such, an expansion in current accounts significantly contributes to reducing credit risks by broadening the  customers base and by requiring/allowing a bigger diversification of banking products. Moreover, it allows the bank to  achieve increased profitability attributed to sale of related products.

    The bank aims to serve customers while maintaining a narrow and optimal cost base. As a result, the concept of the extremely small branch that can serve about 3000 customers was developed. The branch, staffed by one or two employees per shift, relies on technology that enables video conferencing between the customer and the banker at a call center.

    The bank is exploring the expansion of several contact points with the customer, through video branches, as well as through cooperation with external retail partners. Such collaborations provide a strategic solution for the relative lack of branches and this is of course, subject to an in-depth review of risk management, allocation of capital required, as well as regulatory approval. 

    Other main data for the third quarter of 2012:

    The net balance of public credit as at September 30, 2012, totaled NIS 9,488 million, compared  with  NIS 9,058 million at the end of 2011; an increase of about 5%.
     
    The balance of liquid assets (cash, deposits in banks and securities) as at September 30, 2012, totaled NIS 2,204 million, compared  with NIS 2,283 million at the end of 2011– a decrease of about 3%.
     
    The cash and deposits balances in the banks as at September 30, 2012, amounted to about NIS 1,054 million, compared  with about NIS 792 million at the end of 2011 – an increase of about 33%.
     
    The balance of securities as at September 30, 2012, amounted to about NIS 1,150 million, compared  with about NIS 1,491 million at the end of 2011 – a decrease of about 23%.
     
    The balance of public deposits as at September 30, 2012, totaled about NIS 9,605 million, compared  with about NIS 9,065 million at the end of 2011 – an increase of about 6%.
     
    The balance of liability certificates and deferred liability notes as at September 30, 2012 totaled about NIS 1,401 million (from  which – a balance of deferred liability notes totaled NIS 433 million), in contrast with about NIS 1,612 million at the end of 2011 (from  which  – the balance of deferred liability notes totaled NIS 518 million).
     
    The bank's equity as at September 30, 2012, amounted to about NIS 686 million.
     
    Non-interest financing income for the first nine months of 2012, totaled NIS 16.8 million, compared  with  NIS 2.8 million for the same period last year. The main increase is attributed to an increase in Nostro earnings.
     
    Expenses for credit losses for the first nine months of 2012, totaled NIS 20.6 million, compared  with NIS 6.5 million for the same period last year. The reviewed period included an increase in the group provision attributed to an increase in consumer credit portfolio. Moreover, the same period last year included in this section, a cancellation of the provision (recovery) for business customers amounting to about NIS 4.3 million. 
    The provision rate in annual terms in the first nine months of the year is 0.29%.
     
    Operating and other expenses for the first nine months of 2012, totaled NIS 185.1 million, compared  with NIS 163.5 million in the same period last year – an increase of about 13%. The main increase is derived from a rise in building and equipment maintenance expenses resulting from moving from an owned property to a rented one, and from increased payroll and advertising, computerization, depreciation, and consulting expenses, based on implementing the Bank’s strategic plan. 

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  • Bank of Jerusalem Publishes Financial Statements for the First Half of 2012
    Presents sharp 212% increase in net profit in comparison to the same period last year that was reflected, among others, in an increase in the rate of return on equity to 8.9% in the second quarter. Likewise, the Bank shows a 41% increase in net interest income (financia...

    Presents sharp 212% increase in net profit in comparison to the same period last year that was reflected, among others, in an increase in the rate of return on equity to 8.9% in the second quarter.

    Likewise, the Bank shows a 41% increase in net interest income (financial revenue) in comparison to the same period last year (NIS 110.7 million vs. NIS 78.3 million).

    The net profit for the first six months of 2012 amounted to NIS 25.3 million, compared to NIS 8.1 million in the same period last year (profit from last year’s sale of the administrative building was neutralized) – as said, an increase of 212%.

    The net rate of return on average equity was 7.8% compared to 2.7% in the previous year (profit from last year’s sale of the administrative building was neutralized).

    Continued improvement in results was reflected in a rate of return on equity of 8.9% in the second quarter.

    The capital adequacy ratio for the bank was 13.7% and the core capital to risk components ratio stood at 9.8%.

    It should be noted that the bank’s core capital adequacy ratio is significantly higher than that of the entire banking system. If the bank had been operating in a similar capital adequacy environment as that of the system (at a rate of 8.3%), the net rate of return would have been 10% for the second quarter and 8.7%. for the first six months of 2012.

    The sharp 41% rise in financial revenue stems from the continued improvement of mortgage margins and an increase in consumer credit balance, as well as lowered cost of funding, among others, attributed to expanding recruitment of online deposits through the closed system.

    In December 2011, the Bank’s Board of Directors re-approved the Bank’s strategic plan, at the center of which stood extensive growth in the retail segment while increasing the customer base and product packages, services to households, and diversifying and dispersing the bank's areas of retail activity; e.g., consumer credit and deposits. To achieve the plan's goals, the Bank is working in several areas to change the definition of the bank's core activities, as well as a massive expansion of points of contact with the customer. Among others:
     
    • Expansion of activities on this basis, which exists particularly in current accounts and consumer credit. In consumer credit, the bank's strategic plan continues the procedure of granting consumer credit to bank customers and new customers from the household segment. This procedure gradually brings diversification and gradually reduces in the Bank’s credit portfolio, which is concentrated in mortgages.
    • Transitioning to extensive use of technologically based communications with customers, including multi-channel banking and the option to open an online deposit account while reducing dependency on transactions in the physical branch.
    • Offering better financial value to customers, in both savings and deposits, as well as in other consumer areas.
    • Increased consumer awareness of the bank's value as being competitive and creative.

    Other main data for the second quarter of 2012:

    The balance of the public’s credit as of June 30, 2012, amounted to NIS 9,441 million, compared to NIS 9,058 million at the end of 2011 – an increase of about 4%.

    The balance of cash and deposits in banks as of June 30, 2012, amounted to NIS 763 million, compared to NIS 792 million at the end of 2011 – a decrease of about 4%.

    The balance of securities as of June 30, 2012 amounted to about NIS 1,390 million, compared to about NIS 1,491 million at the end of 2011 – a decrease of about 7%.

    The balance of the public’s deposits as of June 30, 2012 amounted to NIS 9,534 million, compared to about NIS 9,065 million at the end of 2011 – an increase of about 5%.

    The balance of liability certificates and deferred liability notes as of June 30, 2012, amounted to about NIS 1,369 million (which include a balance of deferred liability notes totaling NIS 443 million), in contrast with about NIS 1,612 million at the end of 2011 (which included a balance of deferred liability notes totaling NIS 518 million).

    The bank's equity as of June 30, 2012, amounted to NIS 674 million.

    The non-interest financing income for the first six months of 2012 amounted to NIS 22.4 million, compared to NIS 4.0 million in the same period last year – an increase of about 460%. The main increase is attributed to an increase in Nostro earnings.

    Expenses for credit losses in the first six months of 2012 amounted to NIS 9.9 million, compared to NIS 2.2 million in the same period last year. In the same period last year, this segment included income for cancellation of a provision (recovery) for business customers of a total of about NIS 4 million. Likewise, the reviewed period included an increase in collective provisions attributed to an increase in the consumer credit portfolio. Total expenses for credit losses comprised 0.2% of the entire credit portfolio in annual terms.

    Operating and other expenses for the first six months of 2012 amounted to NIS 124.2 million, compared to NIS 107.5 million in the same period last year – an increase of about 16%. The main increase stems from increased building maintenance and equipment expenses in light of the transition from an owned asset to a rented one, as well as from an increase in advertising, IT, rent, and consulting expenses attributed to implementation of the Bank’s strategic plan.

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