PRESS RELEASE
BANK LEUMI (UK) PLC
BANK LEUMI (UK) ANNOUNCES
ANOTHER YEAR OF GROWTH IN 2007
London,
26th February 2008
Bank Leumi (UK) today announced its results for 2007.
In a year of continued growth for the Bank, total assets rose by 11% to £1.4 billion.
For the first time,lending to customers reached £1 billion compared with £0.8 billion in the previous year (+28%), and customer deposits increased to £1.2 billion compared with £1 billion for 2006 (+14%).
Profit on ordinary activities before tax reached £16.9 million and the pre-tax return on equity for 2007 amounted to 20% compared with 16.7% in 2006.
Post-tax profit for the 2007 financial year amounted to £12.1 million and the Bank’s key performance indicator, the net return on capital employed, improved to 14.3% compared with 11.5% in 2006.
Although there is a decrease of 4% in post-tax profit as against the previous year these results are not comparable due to the change in capital structure and the resulting effect of the additional interest paid on loan capital in 2007. Putting the results on the same footing for both years would result in a year-on-year increase in post-tax profit of 7%.
Highlights of the year include:
- Significant growth in Commercial and Corporate Banking.
- Continued strong returns from commodity finance and property finance activities including broadening the activities in Western Europe.
- Increasing business with Israeli corporates investing in the UK and Europe.
- The first full year and establishment in the market place of the Invoice Discounting and Factoring subsidiary, Leumi ABL Ltd, broadening the scope of the Bank’s commercial lending activity.
- Restructuring and refocusing of the Bank’s Private Banking and Wealth Management division.
- Restructuring the capital resources of the Bank.
Commenting on the 2007 results Miki Friedman, Managing Director & CEO said:
“ Since my arrival at Bank Leumi UK in October 2007 I have been impressed by the professionalism and energy of my staff. They are to be congratulated on achieving such excellent results against a background of widespread turmoil in the international credit markets and economic uncertainty at home and abroad.
My objective in the coming years is to build on the firm foundations for growth laid by my predecessor, Baruch Lederman, and to continue to provide our customers with the first class service they have come to expect from Bank Leumi (UK).”
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Note to Editors
Bank Leumi (UK) provides financial services to UK and International clients through its Head Office in London, Northern branch based in Manchester, Offshore Banking and Trust subsidiaries in Jersey, and its Factoring and Invoice Discounting subsidiary in Brighton.
The Bank’s main areas of activity include trade finance, with a particular expertise in financing cross border trading in commodities and financing trade with Israel; commercial and residential property finance in the UK; providing general commercial finance to a wide range of businesses and the financing of the media sector, particularly film and television production, where the Bank has extensive experience. The Bank also specialises in UK and International Private Banking and Wealth Management. Private Banking Relationship Managers offer advisory investment management services as well as an extensive choice of deposits and investment accounts including structured products. Working closely with the Bank’s Treasury Department, services such as foreign exchange, money market and derivatives for hedging purposes are also provided.
Bank Leumi (UK) is a subsidiary of the Bank Leumi le-Israel Group which has assets in excess of $60 billion. The group has a dominant share of the domestic Israeli banking market and the largest overseas network of any Israeli bank, with more than 50 offices in 20 countries around the world.
Bank Leumi (UK) continues its policy of “Relationship Banking” aiming to provide all of its customers with the highest quality service.
For further information, please contact:
Moshe Langerman mlangerman@bankleumi.co.uk
020 7907 8031 www.bankleumi.co.uk
