Israel Discount Bank Reported Q1 Net Income NIS 278 Million Compared to NIS 143 Million in Q1/2010, an Increase of 94.4%

TEL-AVIV, Israel, May 31, 2011 /PRNewswire/ --

- Israel Discount Bank Limited (TASE:DSCT), One of Israel's Leading Banks, Today Reported Q1 2011 Financial Results

Headline Data for Q1 2011

Q1 Net Income - NIS 278 million compared to NIS 143 million in Q1/2010, an increase of 94.4%

Q1 Return on Equity attributed to the Bank's Shareholders - 10.8% compared to 5.8% in the first quarter of 2010

Ratio of Capital to Risk Assets (according to Basel II guidelines) - 13.39%.

Core Capital Ratio - 7.7%

(Logo: http://www.newscom.com/cgi-bin/prnh/20100810/403645 )

The Discount Group's Net Income in the first quarter of 2011 totaled NIS 278 million, compared to NIS 143 million in the first quarter of 2010, a 94.4% increase. The Return on Equity attributed to the Bank's Shareholders in the first quarter of 2011 reached 10.8%, compared to 5.8% in the first quarter of 2010.

Main factors affecting the Group's business results in the first quarter of 2011, compared to the corresponding period:

- An increase of 15.6% in income from financing activities before expenses for credit losses.

    - A decrease of 4.3% in the expenses for credit losses.
    - An increase of 2.0% in operating and other income.
    - An increase in Operating and Other expenses of 4.5%.
    - An increase in Provision for Taxes on Operating Income of NIS 28m.
    Main Balance Sheet Developments in Q1 2011:

- Total Assets decreased by 1.0%, amounting to NIS 184.0 billion, compared to NIS 185.8billion at the end of 2010.

- Net Credit granted to the public decreased by 1.7%, amounting to NIS 116.7 billion, compared to NIS 118.7 billion at the end of 2010.

- Securities decreased by 7.9%, amounting to NIS 34.3 billion, compared to NIS 37.2 billion at the end of 2010.

- Deposits from the public decreased by 1.4%, amounting to NIS 136.1 billion, compared to NIS 138.0 billion at the end of 2010.

- The equity attributable to the equity holders of the Bank decreased by 6.7%, amounting to NIS 10.5 billion, compared to NIS 11.2 billion at the end of 2010.

- Total Capital declined by 6.5% to NIS 10.8 bln compared to NIS 11.6 bln at YE 2010

    Data Regarding Subsidiaries

    Q1 2011
                                                                     Capital
                                                  Net    Return on  Adequacy
                                                  Income   Equity      Ratio

    Discount Bancorp Inc.                       USD 14 M     7.6%     *16.0%
    Mercantile Discount Bank                    NIS 43 M    10.6%      12.8%
    Discount Mortgage Bank                     NIS 8.9 M     3.3%      17.0%
    Israel Credit Cards (ICC) (the Bank holds
    71.8% of the equity)                        NIS 64 M    26.1%      16.3%

    * In conformity with U.S. Reporting Standards

    Q1 2010
                                                                      Capital
                                                 Net      Return on  Adequacy
                                                 income   Equity     Ratio

    Discount Bancorp Inc.                       USD 15 M    8.6%     *15.0%
    Mercantile Discount Bank                    NIS 30 M    7.3%      12.4%
    Discount Mortgage Bank                     NIS 6.2 M    2.3%      19.2%
    Israel Credit Cards (ICC) (the Bank holds
    71.8% of the equity)                        NIS 64 M   25.8%      16.0%

    * In conformity with U.S. Reporting Standards

    2010
                                                                     Capital
                                                 Net     Return on  Adequacy
                                                 Income    Equity     Ratio

    Discount Bancorp Inc.                       USD 51 M     6.8%    *14.7%
    Mercantile Discount Bank                   NIS 147 M     8.2%     13.6%
    Discount Mortgage Bank                    NIS 30.4 M     2.8%     18.3%
    Israel Credit Cards (ICC) (the Bank holds
    71.8% of the equity)                       NIS 215 M    18.3%     16.2%

    * In conformity with U.S. Reporting Standards

    Discount Group - Principal Data From The Financial Statements

    Income and Profitability (in NIS millions)

                                    First Quarter       %   Annual
                                     2011    2010  change     2010
    Income from financing
    activities before
    expenses for credit losses      1,289   1,115    15.6   4,830
    Expenses for credit losses        112     117    (4.3)    821
    Operating and other income        653     640     2.0   2,661
    Operating and other expenses    1,460   1,397     4.5   5,631
    Operating income before taxes     370     241    53.5   1,039
    Operating income after taxes      219     118    85.6     572
    Net operating income              240     143    67.8     688
    Net income attributable to the
    equity holders of the Bank        278     143    94.4     724
    Return on net income in %        10.8     5.8             6.9


    Development of Assets and Liabilities (in NIS millions)

                                         March 31         December 31
                                                   %               %
                                   2011   2010  change   2010   change

    Total Assets                  184.0  187.2   (1.7)  185.8   (1.0)
    Credit granted to the public  116.7  114.3    2.1   118.7   (1.7)
    Securities                     34.3   36.6   (6.3)   37.2   (7.9)
    Deposits from the public      136.1  139.9   (2.7)  138.1   (1.4)
    Equity attributable to the
    bank's shareholders            10.5   10.3    1.9    11.2   (6.7)
    Total Equity                   10.8   10.6    1.8    11.6   (6.5)

    Principal Financial Ratios (in percentages)

                                                   March 31      December 31
                                                2011     2010        2010

    Total Equity / Total Assets                  5.9      5.7         6.2
    Net credit granted to the public /
    Deposits from the public                    85.7     81.7        86.0
    Ratio of capital to risk assets (Basel
    II)                                        13.39    12.50       13.69
    Core capital ratio                           7.7      7.7         7.9
    Expenses for credit losses / credit
    granted to the public                       0.38     0.39        0.66
    Interest margin                             1.49     1.37        1.48
    Operating Expenses / total income           75.2     79.6        75.2

Israel Discount Bank

Israel Discount Bank is a leading financial group in Israel. With nationwide coverage, Israel Discount Bank provides a full spectrum of corporate and retail financial products and services to its clients, both in Israel and key financial centres around the world. Israel Discount Bank is traded on the Tel-Aviv Stock Exchange under the ticker DSCT.

    Israel Discount Bank Ltd.
    Head Office:
    Discount Tower
    23 Yehuda Halevi street, Tel Aviv, Israel
    Tel: +972-3-5145555
    Website: http://www.discountbank.co.il

    For additional details please contact:
    Sarit Weiss
    Spokesperson
    Tel: +972-3-5145516
    Mobile: +972-52-2-461151
    E-mail: [email protected]

SOURCE Israel Discount Bank Ltd