TEL AVIV, May 17 (Reuters) - Israel Discount Bank reported a rise in first-quarter net profit, boosted by higher financing income due to growth in its credit portfolio and by lower credit loss provisions.
Israel’s fourth-largest bank by assets said on Thursday it earned 319 million shekels ($89 million), up from 303 million a year earlier.
It declared a dividend for the first quarter of 32 million shekels, equal to 10 percent of net profit.
Discount had said it would start paying quarterly dividends beginning in the first quarter. The bank has not paid dividends to ordinary shareholders since 1996, except for a one-time distribution in 2008.
Net interest income rose 9 percent to 1.274 billion shekels while credit loss expenses fell to 112 million shekels from 145 million a year earlier.
The bank’s tier 1 capital adequacy ratio, which measures equity capital as a percentage of total risk-weighted assets, rose to 9.8 percent from 9.7 percent a year earlier. ($1 = 3.5826 shekels) (Reporting by Tova Cohen; Editing by Steven Scheer)