Bank Leumi Stock Price, News & Analysis

Bank Leumi (TASE: LUMI) anticipates a pre-tax profit of approximately NIS 253 million from its investment in ironSource following its IPO on NASDAQ. The bank sold 1,290,230 shares during the merger with Thoma Bravo Advantage, accounting for NIS 39 million of the profits, with NIS 214 million from a revaluation of its remaining stake. Leumi Partners, under Avi Ortal, will retain about 0.75% of ironSource's shares, which are subject to a 6-month contractual restriction. The bank also expects additional profits from its investment in Retailors.

Bank Leumi reported a strong first quarter for 2021, achieving a net income of NIS 1,340 million ($402 million), significantly improving from a loss of NIS 232 million in Q1 2020. The return on equity surged to 15%, compared to -2.6% a year earlier. The loan portfolio grew by 4.1%, with corporate loans increasing by 9.6%. Net interest income rose to NIS 2,348 million (+8.3%), while loan loss income was NIS 212 million, a turnaround from significant losses last year. Overall, a robust financial performance reflected by key metrics.

Leumi Partners Ltd., a subsidiary of Bank Leumi, exercised its option to invest in Retailors Ltd. on May 13, 2021. The shares acquired will be sold under an IPO prospectus published the same day, aiming for completion on May 18, 2021. This move is expected to record a pre-tax profit of NIS 90 million for Bank Leumi. Post-IPO, Leumi Partners will own 6.81% of Retailors' shares, which will be restricted for up to 18 months following the listing.

Bank Leumi is set to release its First Quarter 2021 financial results on May 27, 2021. The results will be presented by Omer Ziv, EVP & CFO, during a conference call scheduled for 5 PM Israel, 3 PM UK, and 10:00 AM ET. Dial-in details are provided for various regions. Accompanying presentations will be available on the Israeli Securities Authority reporting website and the Leumi website under Investor Relations. An archived recording will be accessible one business day after the call. For additional information, visit www.leumi.co.il.

Leumi and Tarya Fintech have announced a strategic partnership to develop a cutting-edge digital mortgage platform. This joint initiative, part of Leumi's modernization efforts, aims to simplify the mortgage process, providing a transparent and user-friendly experience for customers. The platform is designed to respond quickly to customer needs, reducing red tape and streamlining approvals. Leumi, a leader in banking innovation, will work closely with Tarya, Israel's largest P2P lending company, leveraging technology to enhance mortgage offerings.

In 2020, Leumi reported a net income of NIS 2,102 million ($654 million), down from NIS 3,522 million ($1,096 million) in 2019, primarily due to increased loan loss expenses linked to the coronavirus crisis. The fourth quarter net income rose to NIS 890 million ($277 million). The loan loss expense for 2020 surged to NIS 2.6 billion ($809 million), reflecting a 0.88% rate. Deposits grew by 19.6% to NIS 447 billion ($139 billion). Leumi approved NIS 6.4 billion ($2 billion) in business loans amid the crisis, underscoring its commitment to support customers. The CET1 capital ratio stood at a strong 11.9%.

Bank Leumi will announce its Q4 and Annual 2020 financial results on March 9, 2021. The results call will be hosted by Hanan Friedman, President & CEO, and Omer Ziv, EVP & CFO, at 5 PM Israel time, 3 PM UK, and 10 AM ET. Dial-in numbers for various locations, including Israel, the UK, and the US, have been provided. A presentation accompanying the results will be published on the Israeli Securities Authority reporting website and Bank Leumi's Investor Relations page. Archived recordings will be available the next business day.

Bank Leumi reported a net income of NIS 694 million ($200 million) for Q2 2020, down from NIS 923 million ($266 million) in Q2 2019. In H1 2020, net income was NIS 462 million ($133 million), a decrease attributed to increased loan loss expenses totaling NIS 1.7 billion ($501 million). However, the bank saw growth in deposits, which rose by 11.5% year-on-year, and a 7.4% increase in its commercial loan portfolio.

Bank Leumi will release its Second Quarter 2020 financial results on Thursday, August 27, 2020. The results call, hosted by Omer Ziv, EVP & CFO, is scheduled for 5 PM Israel time (3 PM UK, 10 AM ET). Dial-in numbers include 03-9180644 for Israel, 0-800-917-5108 for the UK, and 1-866-860-9642 for the US & Canada, with a global number of +972-3-918-0644. A presentation will accompany the call, available on their website. An archived recording will also be accessible post-call.