Israeli Bank Leumi Q2 profit boosted by higher financing income

Pedestrians are reflected in the windows of a Bank Leumi branch in Tel Aviv May 30, 2013. REUTERS/Nir Elias/File Photo

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JERUSALEM, Aug 16 (Reuters) – Bank Leumi (LUMI.TA), one of Israel’s two largest lenders, reported higher-than-expected quarterly net profit, helped by a significant rise in funding revenue due to an increase in its loan portfolio, inflation and interest rates.

Leumi said on Tuesday it earned 1.99 billion shekels ($610 million) in the second quarter, up from 1.67 billion a year earlier and above expectations of 1.87 billion in a Reuters poll of analysts.

Net interest income fell from 2.77 billion to 3.13 billion, while it had loan loss expenses of 126 million shekels against provision income of 158 million a year earlier, banks companies that canceled provisions made during the COVID pandemic to protect against defaults.

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The bank said it would pay a dividend of NIS 399 million, or 20% of second-quarter net profit.

Leumi noted that following its merger between its US unit and Valley National Bank, it recorded a gain of 451 million shekels in the second quarter.

($1 = NIS 3.2605)

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Reporting by Steven Scheer Editing by Ari Rabinovitch

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