Israel Discount Bank: Fee strength and efficiency gains support upside

Research evidence excerpt

Israel Discount Bank: Fee strength and efficiency gains support upside

iQprofile SM Israel Discount Bank

Key Income Statement Data (Dec) 2024A 2025A 2026E 2027E 2028E Company Sector

(ILS Millions) IFRS IFRS IFRS IFRS IFRS Banks-Multinational/Universal

Net Interest Income 10,839 10,001 10,249 11,198 12,111

Net Fee Income 3,693 2,156 2,317 2,478 2,602

Securities Gains / (Losses) 0 0 0 0 0 Company Description Other Income 1,446 1,157 977 1,011 1,021

Total Non-Interest Income 5,139 3,313 3,294 3,489 3,623 Israel Discount Bank operates as a universal bank across

Total Operating Income 15,978 13,314 13,544 14,687 15,734 retail, corporate, mortgage, and capital markets in Israel.

Operating Expenses (8,329) (6,556) (6,318) (6,391) (6,468) The group combines strong positions in household and

Pre-Provision Profit 7,649 6,758 7,225 8,296 9,266 SME financing, with growing capabilities in corporate

Provisions Expense (702) (450) (667) (727) (941)

lending and wealth management. The bank has a

Operating Profit 6,947 6,308 6,558 7,569 8,325

Non-Operating Items 13.0 183 506 56.1 57.0 diversified structure: Mercantile Discount Bank focuses on

Pre-Tax Income 6,960 6,491 7,064 7,625 8,382 households and small businesses, DB Bank in the US serves

Net Income to sh/holders 4,281 4,140 4,438 4,940 5,446 commercial and private banking and Discount Capital drives

Adjusted Cash Earnings 4,281 4,140 4,438 4,940 5,446 investment banking and private equity activity.

Key Balance Sheet Data

Total Assets 436,540 478,146 511,293 556,047 596,180

Average Interest Earning Assets 409,807 451,744 489,728 528,651 571,095 Investment Rationale

Risk Weighted Assets 303,166 332,635 346,915 377,281 404,511 We see revenues supported by loan expansion and steady