Citi Fun 29 Regulatory News (AD49)

4 Mar 2008 14:12

Leumi International Investments NV04 March 2008 BANK LEUMI LE-ISRAEL B.M. - (GUARANTOR - GUARANTEED EURO MEDIUM TERM NOTE PROGRAMME OF LEUMI INTERNATIONAL INVESTMENTS N.V.) Translation of Immediate Report Bank Leumi le-Israel B.M. Registration No. 520018078 Securities of the Corporation are listed on The Tel Aviv Stock Exchange Abbreviated Name: Leumi Leumi House, 34 Yehuda Halevi Street, Tel Aviv 65546 Phone: + 972 3 5148111, + 972 3 5149419; Facsimile: + 972 3 5149732 Electronic Mail: jennifer@bll.co.il 4 March 2008 To: Israel Securities Authority (www.isa.gov.il) The Tel Aviv Stock Exchange (www.tase.co.il) Immediate Report Nature of the Event: Financial Statements - Bank Leumi USA Bank Leumi le-Israel B.M. announces that a subsidiary of the Bank, Bank LeumiUSA approved its financial statements for 2007. See attached Notice in this regard Date and time at which the corporation first became aware of the event ormatter: 3 March 2008 at 15:00.________________________________________________________________Name of Electronic Reporter: Jennifer Janes, Position: Executive Vice President,Group SecretaryPOB 2 Tel Aviv 61000, Phone: + 972 3 5149419, Facsimile: + 972 3 5149732,Electronic Mail: jennifer@bll.co.il Press Release Contact: Bank Leumi USA Leslie B. Kahle 212-626-1182 leslie.kahle@leumiusa.com BANK LEUMI USA REPORTS 2007 YEAR-END RESULTS Total Assets $5.8 Billion Net Income of $30.5 Million ROE 7.6% New York, NY - Bank Leumi USA (BLUSA) reports full year 2007 net income of $30.5million and total assets of $5.8 billion compared with net income of $25.8million and total assets of $5.8 billion for the year ended December 31, 2006.Return on equity was 7.6% compared to 7.1% for the prior year. Net income forthe fourth quarter was $8.9 million compared with $7.2 million for the fourthquarter of 2006. Total assets of $5.8 billion at December 31, 2007 are higher by $63 million ascompared to total assets at December 31, 2006. Loans increased by $453 millionto $3,516 million, a 14.8% increase over 2006 levels. Loan growth is primarilyattributable to expanded activities in our U.S. and International Lendinggroups. Assets under management grew to $8.4 billion, an increase of 8.8% over2006 levels. "We are pleased with our fourth quarter and full year 2007 financial results.Our net income increased by 18% for the year ended December 31, 2007 with a 16%increase in quarterly income as compared to third quarter of 2007. Our strongfinancial results continue to be driven by growth in our loan portfolio and feebased income from private banking activity. The economic and market changes overthe past six months have created challenges for financial institutionseverywhere. Bank Leumi USA's strategy, however, of managed growth will continueinto 2008. We are confident that by continuously strengthening our privatebanking business and seeking out high quality lending relationships, along withthe addition of key business developers and investment in our technologyinfrastructure, we will continue to positively impact our performance in 2008and beyond," stated Mr. Uzi Rosen, president and chief executive officer of BankLeumi USA. Mr. Rosen added that, "Our capital remained strong with tier 1capital of 8.2%, which exceeds regulatory requirements and positions us to takeadvantage of opportunities for growth in our key markets." Net Interest Income Net interest income for the year totaled $110.5 million, representing anincrease of $17.2 million from 2006. The increase is due to growth in the loanportfolio and widened interest rate spreads. Non-Interest Income Non-interest income totaled $49.4 million for the year compared to $47.6 millionin 2006. The improvement of $1.8 million as compared to last year was primarilydue to an increase in fee income from private banking activities, partiallyoffset by the revaluation adjustment on trading derivatives and certainCertificates of Deposit elected under Statement of Financial Accounting Standard(SFAS) No. 159, "The Fair Value Option for Financial Assets and FinancialLiabilities." Non-Interest Expense Non-interest expense totaled $109 million for 2007, an increase of $9.0 millionor 9% over last year. This increase is primarily due to higher compensationexpense and technology costs supporting our planned business growth. Loans and Allowance for Loan Losses Year end loans of $3.5 billion were $453 million or 14.8% higher than year end2006. The Allowance for Loan Losses was $63 million as of year end andrepresents a ratio of 1.79% of total loans and is almost 3 times the level ofnon-performing loans. Equity and Capital Adequacy Shareholders' Equity was $455 million as of December 31, 2007 compared to $416million as of year end 2006. This change is due to net income of $30.5 million,an adjustment to opening retained earnings at January 1, 2007 of $5.9 millionrelated to the adoption of SFAS No. 159, the reversal of unrealized losses onavailable for sale securities of $12.8 million, and the recognition ofaccumulated other comprehensive loss of $10.2 million, primarily due topreviously unrecognized actuarial losses as a result of adoption of SFAS No.158, "Employer's Accounting for Defined Benefit Pension and Other PostRetirement Plans." Bank Leumi USA's tier 1 risk-based, total risk-based and leverage capital ratioswere 8.23%, 11.03% and 7.37%, respectively, as of December 31, 2007, and remainin excess of regulatory requirements. Bank Leumi USA is an FDIC-insured commercial bank that provides financialservices to middle-to upper-middle market firms and international businessesthrough offices in New York, Illinois, California and Florida. BLUSA offers U.S.and international private banking services as well as a full range of securitiesand insurance products through its brokerage subsidiary, Leumi InvestmentServices Inc. BLUSA is the largest subsidiary of the Leumi Group, founded in1902. Bank Leumi USA and Subsidiaries Consolidated Statements of Financial Condition (Dollars in Thousands) As of Dec. 31, 2007 as of Dec. 31, 2006 Assets Cash and Due from Banks $ 101,969 $ 83,782 Federal Funds Sold - 25,000 Time Deposits with Banks 500 25,500 Securities 1,947,805 2,287,466 Loans 3,515,743 3,063,162 Less: Allowance for Loan Losses 63,034 63,123 ------ ------- Loans - Net 3,452,709 3,000,039 Bank Premises and Equipment 19,156 21,744 Other Assets 292,044 307,151 ------- ------- Total Assets $ 5,814,183 $ 5,750,682 ============ =========== Liabilities Non Interest Bearing Deposits $ 448,000 $ 493,384 Interest Bearing Deposits 4,440,072 4,293,479 Other Borrowings 238,000 310,000 Other Liabilities 132,730 137,335 Long-Term Debt 100,000 100,000 Shareholders' Equity 455,381 416,484 ------- ------- Total Liabilities and Shareholders' Equity $ 5,814,183 $ 5,750,682 =========== =========== Bank Leumi USA and Subsidiaries Consolidated Statements of Income (Dollars in Thousands) Years Ended December 31, 2007 2006 Interest Income $ 332,294 $ 306,250 Interest Expense 221,837 212,952 ------- ------- Net Interest Income 110,457 93,298 Less: Provision for loan losses 2,000 3,000 ----- ----- Net Interest Income after Provision for loan losses 108,457 90,298 Non Interest Income 49,439 47,613 Non Interest Expense 109,089 100,043 ------- ------- Income before Income Taxes 48,807 37,868 Income Tax Expense 18,303 12,026 ------ ------ Net Income $ 30,504 $ 25,842 ========= ========== This information is provided by RNS The company news service from the London Stock Exchange