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The First International Bank of Israel (FIBI) is among Israel’s five largest banking groups. FIBI Group provides a wide range of financial products and services to customers with the highest standards of professionalism and service. FIBI group includes the parent company, First International Bank, and its banking subsidiaries in Israel: Otsar Ha-Hayal Bank and Massad Bank. Together, the three banks operate a network of 165 branches. FIBI has assets of approximately NIS 130 billion and maintains stable capital base that is among the largest in the banking system and indicative of the Group’s financial strength.
FIBI Group
The Group focuses on several segments of activity: corporate banking, capital market activity and investment consultancy and private banking. In these segments, the bank enjoys distinctive advantages reflected in the highly professional and skilled staff as well as technical advantages in the form of most advanced information and customer service technological systems.
In addition, the Bank consistently strives to increase its market share in the retail, household sector, an effort resulting over the years in significant progress, with the acquisition of two retail banks: Otsar Ha-Hayal, a bank focusing on services to household customers with particular expertise regarding services to defense industry personnel; and Massad, a bank specializing in services to teaching personnel. Customers of these banks form a most significant retail customer base. Also FIBI Bank, inter alia through the Poaley Agudat Israel group, a leading brand name in orthodox and ultra-orthodox community banking, places an emphasis on retail banking in the different segments of operation: investment consulting, deposits, consumer credit, mortgage loans, credit cards, and more.

First International Bank Group Presents Results for the Third Quarter 2017
TEL AVIV, Israel, Nov. 15, 2017 /PRNewswire/ --

Third Quarter Highlights

Growth of 58.6% in net earnings to NIS 203 million;
Growth of 25% in pre-tax earnings to NIS 281 million;
Return on equity: 11.1%; and with the elimination of income from taxes in respect of prior years – return on equity of 9.3%;
Year-over-year growth of 4.5% in earnings from financing activities;
Reduction of 3.3% in operating and other expenses, and improvement to 68.8% in the cost/income ratio;
Growth of 3.8% in credit to the public in the first nine months of the year, mostly in the private customer segment (4.8%) and in the small business segment (4.9%);
Ratio of Tier I equity capital to risk weighted assets: 10.32%;
Dividend of NIS 100 million to be issued for the quarter.
Management Comment

Mrs. Smadar Barber-Tsadik, CEO of the First International Bank Group (TASE: FTIN), "The good results for the quarter reflect the growth trend of the Group which is evident in both the growth in credit to the public and in deposits by the public. This along continued and consistently improving efficiencies, which are reflected across all expense items, while maintaining a high level of financial stability.

"The First International Bank emphasizes the promotion of digital services and innovation combined with professional service to customers. We recently introduced new innovations to both our website and mobile banking applications, introducing – an investment advisory service accessible on the mobile phone, comprising a breakthrough in the world of investment consultation, which caters its service specifically to customer requirements."

Profitability and Growth

Net earnings in the third quarter increased by 58.6% in comparison to the corresponding quarter last year and amounted to NIS 203 million. Return on equity reached 11.1%.

In the third quarter of the year, the Bank recognized income from prior years' taxes which amounted to NIS 32 million. The pre-tax earnings in the third quarter increased by approximately 25% and amounted to NIS 281 million. The return on equity, with the elimination of income from taxes in respect of prior years, in the amount of NIS 32 million, reached 9.3% for the quarter.

In the first nine months of the year net earnings grew by 27.1% in comparison to the corresponding period last year and amounted to NIS 520 million. Return on equity reached 9.4%. Pre-tax earnings amounted to NIS 774 million, a year-over-year increase of 13.7%. Net interest income increased by 6% in the first nine months of the year, in comparison to the corresponding period last year, and amounted to NIS 1,710 million. The increase stemmed from operations, mostly from the growth in the credit portfolio.

The growth of the Group is apparent from both the credit and the deposit side. The credit to the public portfolio grew by 3.8% in the first nine months of the year. The growth in the credit portfolio is characterized by the continuous distribution of the credit granted and is most noticeable in the private customer segment, which grew by 4.8%, in the small business segment, which grew by 4.9%, and in the middle market and large businesses segment, which grew by 1.1%.

Credit loss expenses in the third quarter of the year amounted to a rate of 0.04% of total credit to the public, and in the first nine months of the year to 0.16%. The total amount of doubtful debts decreased by 12.7% in relation to the level as of the end of 2016.


The First International Bank continues to improve efficiencies in accordance with its strategic outline and achieved a decrease of 3.3% (NIS 22 million) in total operating and other expenses for the quarter, in comparison to the corresponding quarter last year, and amounted to NIS 640 million. The reduction in expenses for the quarter is noted across all expense items, including payroll and related expenses, which decreased by 1.7%.

The gradual and consistent improvement in the efficiency ratio continued, and showed a third quarter improvement of the cost income ratio to 68.8%, in contrast to 69.6% in the second quarter of the current year.

Financial stability

The growth trend of the capital attributed to the shareholders of the Bank continued, growing by 5.3% in comparison to the end of 2016, and amounting to NIS 7,706 million. The Tier I equity capital ratio increased reaching 10.32%, as compared to 10.09% at December 31, 2016, and the comprehensive capital ratio increased to 13.94%

The Board of Directors of the Bank decided on a dividend distribution of NIS 100 million. This is in addition to dividend distributions totaling NIS 210 million since the beginning of the year.

Condensed principal financial information and principal execution indices


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