Israel Discount Bank (TASE: DSCT) reported its results this morning for the fourth quarter of 2020 and for the year as a whole.

Net profit for 2020 was NIS 975 million, which compares with NIS 1.7 billion for 2019. Return on equity last year was 5.1%. The 42% decline in net profit was mainly due to the effects of the coronavirus pandemic and the bank’s streamlining program. Excluding one-time items, net profit in 2020 was NIS 1.28 billion and return on equity was 6.7%.

Net profit for the fourth quarter of 2020 fell 18.8% in comparison with the fourth quarter of 2019, to NIS 264 million. Excluding one-time items, net profit for the quarter was NIS 421 million, 16.6% higher than in the fourth quarter of 2019, and annualized return on equity in the quarter was 9.1%. Among the one-time items (post-tax) was a NIS 243 million expense for severance pay, which represents 85% of this item for 2020 as a whole. The bank also recorded one-time revenue in the quarter of NIS 112 million from an insurance payment.

From the beginning of the coronavirus crisis up to the date of publication of the report, Discount Bank and Mercantile Discount Bank extended loans from the government guaranteed funds to businesses harmed by the effects of the pandemic totaling NIS 4 billion.

During this period, the banks allowed deferral of repayments of loans totaling NIS 17.7 billion, representing about 11% of their credit portfolios. Repayments have resumed in respect of nearly 70% of these loans.

Published by Globes, Israel business news – en.globes.co.il – on March 16, 2021

© Copyright of Globes Publisher Itonut (1983) Ltd. 2021

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