Galia Maor parts from Leumi on lower profit

Today, for the last time, Galia Maor presented the financial results of Bank Leumi (TASE: LUMI). On May 1, Maor will step down as CEO of the bank after 17 years in the post, and her replacement, Rakefet Russak-Aminoach, will take over. Maor’s last year as Leumi CEO actually ended with less good results than the bank is accustomed to.
It reported a profit of NIS 1.891 billion, which compares with a profit of NIS 2.33 billion in 2010. Return on equity was 8.3 percent. Profit on ordinary activities was NIS 1.889 billion, 12.2% less than in the previous year.
The decline in profit was mainly due to a fall in the value of foreign securities, the fall in the share price of Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR), leading to a revaluation of the bank’s holding in the company, and a less profitable year for Israel Corporation (TASE: ILCO), of which Bank Leumi holds 18%, because of problems at subsidiary Zim Integrated Shipping Services Ltd. The fall in profit on the bank’s activity in Israel, excluding its overseas units and branches, was 43%.
The numbers might have been worse had the bank not enjoyed a NIS 326 million tax benefit in the fourth quarter, resulting from the change in future company tax rates under the recommendations of the Trajtenberg Committee on Economic and Social Change.
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