November 13, 2017 / 9:49 AM / in a year

Israel's Mizrahi-Tefahot Bank Q3 profit slips on wage deal

JERUSALEM, Nov 13 (Reuters) - Mizrahi-Tefahot, Israel’s third-largest bank, reported lower quarterly net profit, weighed down by a one-time expense for a new salary agreement for its workers.

Mizrahi said on Monday it earned 261 million shekels ($74 million) in the third quarter, down from 373 million a year earlier. The new wage deal had a 104 million shekel impact on the bank’s bottom line, it said. Financing income before expenses for credit losses declined to 1.072 billion shekels from 1.096 billion, while the credit loss provision slipped to 41 million shekels from 59 million.

For the quarter, the bank will distribute a dividend of 78.3 million shekels — 30 percent of net profit — following a dividend of 120 million in the second quarter.

The bank’s Tier I capital ratio, a key measure of its financial strength, rose to 10.16 percent at the end of September from 9.85 percent a year earlier.

Mizrahi in July said it was in talks to buy smaller rival Union Bank, Israel’s sixth-largest bank. ($1 = 3.5402 shekels) (Reporting by Steven Scheer; Editing by Tova Cohen)

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