Mizrahi Tefahot Bank (TASE: MZTF) saw an 11% rise in net profit in 2024. The bank reported its fourth quarter and full-year 2024 financial results this morning with record net profit of NIS 5.5 billion last year, up from NIS 4.9 billion in 2023. The bank's return on equity in 2024 has grown to almost double digits, and will likely be one of the highest in the banking system – 18.5%.
In the fourth quarter, the return on equity was 16.9%, up slightly from 15.5% in the corresponding quarter of 2023.
The bank announced that it will distribute 40% of its fourth-quarter profit as a dividend, amounting to NIS 522 million. Overall in 2024, the bank would have distributed a dividend of NIS 2.18 billion, about half of which will go to the controlling owners, the Wertheim and Ofer families.
The bank said, "Despite the significant and complex challenges the Israeli economy was faced with throughout 2024 in the wake of the Iron Swords War and its effects on all aspects of life in Israel, in 2024 the Bank presented record annual profit of NIS 5,455 million, while maintaining the growth momentum in many areas of activity and key balance sheet items, both compared to 2023 and from a multi-year perspective."
Mizrahi Tefahot's revenue from interest (net) rose 7.5% to NIS 11.3 billion in 2024, and has more than doubled since 2020, when it was NIS 4.8 billion. The bank noted that net profit was affected over the past year, among other things, by a decline in financing income due to the decline in interest rates in the US, a fall in the Bank of Israel interest rate (by 0.25% at the beginning of last year, and it has not decreased since then). This trend led to a diversion of funds from current accounts, which pay almost no interest on deposits. The bank also noted that from the beginning of 2024, the growth trend in financing income from current activities has been gradually restored.
In 2024, expenses for credit losses was NIS 519 million, down from NIS 1.46 billion in 2023, which was mainly due to provisions that the Bank of Israel ordered the banking system to make due to the increase in credit risk because of the war. The same is true due to the increase in the level of risk due to the interest rate in the economy. The rate of provisions for credit losses of total credit to the public was 0.14% last year, compared with 0.45% in 2023.
Mizrahi Tefahot Bank CEO Moshe Lari said, "Despite the many difficulties, we met all our targets, both social and business, in a full and heart-warming manner. The thousands of excellent employees of Mizrahi Tefahot gave tangible meaning to our advertising slogan: 'People First', and in their determined and committed daily work, they listened to every problem and all troubles and acted sensitively to provide unique solutions to each customer. In addition, the bank's employees participated in many charity and volunteer activities, and gave expression to the unique Israeli spirit of mutual support and solidarity."
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In 2024, the bank had 7,174 employees on average, similar to the 7,148 employees in 2023 but down from 7,636 employees in 2022. The bank had 205 branches at the end of 2024, the same as in 2023.
Published by Globes, Israel business news – en.globes.co.il – on February 27, 2025.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2025.
