JERUSALEM, March 14 (Reuters) - Bank Leumi reported a nearly 60% rise in net profit in the fourth quarter,
helped by a sharp rise in interest rates that boosted financing
income.
Leumi, Israel's largest bank by assets, said it earned a net
2.33 billion shekels ($641 million) in the quarter ended Dec.
31, compared with a profit of 1.47 billion shekels a year
earlier.
Helped by aggressive Bank of Israel rate hikes to fight
inflation, net interest income jumped to 3.78 billion shekels
from 2.55 billion. Its provision to protect against credit
losses was 313 million shekels compared with income from the
provision of 83 million shekels last year.
Leumi said it would pay a dividend of 698 million shekels,
or 30% of fourth quarter net profit, raising its payout from
20%.
Its Tier 1 ratio of capital to risk components, a key
measure of financial strength, slipped to 11.46% from 11.5% a
year earlier.
($1 = 3.6367 shekels)
(Reporting by Steven Scheer
Editing by Ari Rabinovitch)
Messaging: steven.scheer.thomsonreuters.com@reuters.net;
Twitter: @StevenMScheer))
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