Aggregate bank profits down 50% in 2001

Dun & Bradstreet data published today indicates that the aggregate shareholders equity of the five major retail banks increased in 2001 by 5.3% and amounts to $8.3 billion. The banks' aggregate profits dropped 50% to $436 million. As has been reported, the five banks posted a 34% increase in problematic debtto $10.8 billion, compared to just $8 billion in 2000. The problematic debt and increased provisions are the primary cause of the drop in profits.

Bank Leumi Le-Israel(TASE: LUMI ) trailed Bank Hapoalim(TASE: POLI ) in equity by just $8 million in 2001, after $194 million in 2000. The ranking didn't change in 2001 with Bank Hapoalim still leading Bank Leumi by a smidge. Israel Discount Bank (TASE: DSCT ) shareholders equity grew by a small 0.34% against the 5.3% average growth rate for the sector.