Israel Discount Bank Q2 profit surges, ready for dividends

The report recently released by Israel Discount Bank showed that the lender recording more gains than was projected in its quarterly profit. This is following an impressive improvement in the health of the country’s economy, which is beginning to step out of the shadows cast by the pandemic.

The trend of recovery has also made it possible for the firm to gradually roll back the loan default measures and provisions it put in place in 2o20.

Israel Discount bank, which is currently ranked (by assets) as the -largest bank in Isreal, reported on Monday that its Q2 earnings reached 860 million shekels (US$267.5m). 

The Q2 profit is a significant improvement on the 174 million recorded in 2020. It also surpasses analyst projections of 651 million shekels.

Discount announced plans to reinstate 20% dividend payments on ongoing profits once the country’s apex bank removes the restrictions on payments if no new limits are imposed.

Bank of Israel imposed a ban on dividends as soon as the pandemic hit and that ban is set to expire at the end of September, although the possibility of an extension has not been ruled out.