Israel’s Bank Leumi Q2 profit boosted by financing income jump

Pedestrians are mirrored within the home windows of a Financial institution Leumi department in Tel Aviv Might 30, 2013. REUTERS/Nir Elias/File Photograph

JERUSALEM, Aug 16 (Reuters) – Financial institution Leumi (LUMI.TA), one among Israel’s two largest lenders, reported increased quarterly web revenue that beat estimates, helped by a big achieve in financing revenue resulting from a rise in its mortgage portfolio, inflation and rates of interest.

Leumi mentioned on Tuesday it earned a web 1.99 billion shekels ($610 million) within the second quarter, up from 1.67 billion a 12 months earlier and above expectations of 1.87 billion in a Reuters ballot of analysts.

Web curiosity revenue rose to three.13 billion from 2.77 billion, whereas it had mortgage loss bills of 126 million shekels versus revenue from the supply of 158 million a 12 months earlier, as Israeli banks unwound provisions made throughout the COVID pandemic to guard in opposition to mortgage defaults.

The financial institution mentioned it could pay a dividend of 399 million shekels, representing 20% of second-quarter web revenue.

Leumi famous that within the wake of its merger between its U.S. unit and Valley Nationwide Financial institution, it recorded a achieve of 451 million shekels within the second quarter.

($1 = 3.2605 shekels)

Reporting by Steven Scheer
Modifying by Ari Rabinovitch

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