TEL AVIV, May 30 (Reuters) - Bank Leumi, Israel’s second-biggest bank, reported a higher first-quarter net profit, boosted by sharply lower credit loss charges and a one-time gain from the sale of shares in Migdal Insurance.
The bank said on Thursday its net profit rose to 570 million shekels ($154.5 million) in the quarter from 431 million a year earlier, but it was below expectations of 610 million shekels in a Reuters poll of analysts.
Leumi’s profit was boosted by a one-time gain of 180 million shekels from the sale of shares in Migdal Insurance and Financial Holdings.
The bank’s net interest income fell 3.6 percent from a year earlier to 1.76 billion shekels, while credit loss expenses decreased to 73 million shekels from 225 million.
The bank was expected by analysts to post net interest income of 1.89 billion shekels and credit loss charges of 267 million.
Leumi’s core Tier 1 capital ratio to risk-weighted assets rose to 8.84 percent at the end of the quarter from 8.55 percent at the end of 2012.
$1 = 3.69 shekels Reporting by Tova Cohen