Discount NY Q1 profit halved
May 06, 2012 (Menafn - Globes - McClatchy-Tribune Information Services via COMTEX) --The net profit for the first quarter of 2012 of Israel Discount Bank (tase:DSCT) subsidiary Israel Discount Bank of New York was halved compared with the corresponding quarter of 2011. Net profit fell to 7.2 million, after the bank redeemed 75 million worth of bonds early, and paid a 7.1 million charge on the redemption.
Financing revenue fell by 6.7 million and operating income fell by 1.7 million. The bank's return on equity fell to 4.2 percent for the first quarter from 7.7 percent for the corresponding quarter. The capital adequacy ratio was a high 13.8 percent at the end of March.
Discount Bank New York's equity rose 1.8 percent during the first quarter to 691 million at the end of March. The bank distributed a 100 million dividend to its direct parent company Discount Bancorp Inc. last year.
Deposits from the public fell by 4.4 percent during the first quarter to 6.4 billion at the end of March. Most of the deposits are by Latin American Jews. The balance sheet total was 9.5 billion at the end of March. The credit portfolio fell by 1.3 percent during the first quarter to 3.7 billion at the end of March.
Discount Bank New York's full-year net profit was 50.1 million in 2011.
Discount Bank's share price fell 1.3 percent by midday to NIS 4.86, giving a market cap of NIS 5.2 billion.
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