JERUSALEM, Aug 13 (Reuters) - Mizrahi-Tefahot Bank , Israel’s fourth-largest lender, reported a higher-than-expected rise in quarterly profit, boosted by financing income and a steep drop in credit loss charges.
Mizrahi-Tefahot, the first of Israel’s top banks to report quarterly earnings, said on Wednesday it made a record profit of 302 million shekels($86.6 million dollar) in the second quarter, up from 245 million a year earlier and above an average forecast in a Reuters poll of 284 million shekels.
Financing income rose 5 percent to 821 million shekels, while its provision for credit losses fell to 23 million shekels from 181 million.
Mizrahi-Tefahot is Israel’s largest mortgage lender with an average market share of 36 percent. It added that bank loans to the public grew 7.9 percent over the past year, largely in the low-risk retail sector.
Its ratio of Tier I capital to risk elements rose to 9.0 percent in Basel III terms from 8.74 percent a year earlier. Banks must reach a 9 percent ratio by the start of 2015.
Israel’s top three banks will report quarterly earnings later starting on Thursday.
1 US dollar = 3.4871 Israeli shekel Reporting by Steven Scheer, editing by William Hardy