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Operating Results - Profit and Profitability
Net income from ordinary operations after taxes for the period under review amounted to NIS 47.5 million, compared to NIS 32.4 million in the corresponding period of the previous year, an increase of 47%. The rate of return on income from ordinary operations was 11.4% in the period under review, compared to 8.4% in the corresponding period of the previous year. Most of the increase is derived from an increase in income from financing activity.
Earnings from financing operations before allowance for doubtful debts amounted to NIS 139.1 million for the period under review, compared to NIS 114.5 million for the corresponding period of the previous year, an increase of 21%. Most of the increase is derived from realization of securities available for sale and earnings from marketable securities in the amount of NIS 40.1 million and from an increase in earnings from adjustment of fair value of derivative financial instruments in the amount of NIS 4.5 million. On the other hand, a decrease was recorded in earnings from margins and from financial capital in the amount of NIS 24.5 million, mainly as a result of decrease in interest and decrease in earnings from positions in the amount of NIS 3.1 million. Also, a decrease in the amount of NIS 6.3 million was recorded in the allowance for impairment of securities compared to the allowance recorded in the corresponding period of the previous year (NIS 4.4 million in the period under review compared to NIS 10.7 million in the corresponding period of the previous year).
