Aug.30, 2012 | 6:09 AM–

First International Bank boosts second-quarter profit by 43%
First International Bank, the country’s fifth-largest bank, reported a 43% jump in second-quarter profit from a year earlier yesterday, boosted by higher interest income and lower credit loss charges. FIBI said net rose to NIS 143 million from NIS 100 million a year earlier. Net interest income and non-financing interest income rose by 14.1% to NIS 584 million, while the expense for credit losses fell to NIS 21 million from NIS 36 million. CEO Smadar Barber-Tsadik said the bank had a core capital ratio of 9%, the highest among Israeli banks, while its provision for credit losses is the lowest among the banks. “This financial resilience is enabling the bank to maintain sustained growth and development, concurrent with continued expansion in the credit portfolio,” she said. (Reuters)

Africa Israel dips into red on downgrade of Russian property portfolio
Lev Leviev’s Africa Israel Investments swung to a huge loss in the second quarter, citing a drop in value in the property portfolio of its Russian subsidiary. The property development and holding company said yesterday it posted a net loss of NIS 725 million, compared with a NIS 33 million profit in the year-earlier period. Earlier this month, it had projected a loss of between NIS 720 million and NIS 800 million. Africa Israel said the value of its portfolio of properties under construction in Russia fell by NIS 873 million in the quarter. Nevertheless, CEO Avraham Novogrocki said the company saw “great potential” in the Russian real estate market. “This is another quarter where see that uncertainty and sharp fluctuations in world capital markets have not yet passed,” he said, adding that all other of its units continue to show growth. (Reuters)

Delek Group quarterly profit plunges by half
Yitzhak Tshuva’s Delek Group holding company said yesterday that its net profit plunged by nearly half in the second quarter from the same time in 2011, to NIS 51 million. The main reason was a one-time gain last year of NIS 171 million, but there was some bad news in the Delek group this year that contributed to the decline as well. Its Phoenix insurance unit and U.S. subsidiary Republic contributed combined losses of NIS 47 million in the quarter while its Delek Auto unit posted a NIS 26 million loss. Against that, its energy subsidiaries in the United States and Europe all posted strong profit increases, led by a NIS 199 million contribution by Delek U.S. (Michael Rochvarger)…Read More>>

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