Israel's Bank Leumi Q3 profit jumps, to pay dividend

Bank Leumi LUMI, one of Israel's two largest lenders, reported on Tuesday higher third quarter net profit, 20% of which it would distribute as dividend, with higher interest rates boosting financing income.

Leumi said it earned 1.8 billion shekels ($523 million) in the third quarter, up from 1.6 billion a year earlier.

Net interest income rose to 3.4 billion shekels from 2.7 billion, helped by aggressive Bank of Israel rate hikes to fight inflation. Its provision for credit losses was 99 million shekels compared with income from the provision of 359 million shekels last year.

The bank said it would pay a dividend of 356 million shekels, representing 20% of quarterly net profit.

Leumi said that the sale of one of its headquarters buildings in Tel Aviv is expected to generate a pre-tax capital gain of 524 million shekels that will be recorded in 2023.

($1 = 3.4427 shekels)