Israel Disc Bk Unsp/Adr

ladies and gentlemen thank you for standing by welcome to the israel discount bank third quarter 2025 results conference call all participants are at present in listen-only mode following management's formal presentation instructions will be given for the question and answer session for operator assistant during the conference please press star zero As a reminder, this conference is being recorded November 17, 2025. If you have not yet done so, please access the presentation on the bank's website, investors.discountbank.co.il. I would like to remind everyone that forward-looking statements for respected companies' business, financial condition, and results of its operations are subject to risk and uncertainties that could cause actual results to differ materially from those contemplated. Such forward-looking statements include but are not limited to product demand, pricing, market acceptance, changing economic conditions, risk in product and technology development, and the effect of the company's accounting policies, as well as certain other risk factors which are detailed from time to time in the company's filing with the various securities authorities. I would like to move first to Mr. Maurice Dorfman, Executive Vice President, Head of Strategic and Finance. Mr. Dorfman, would you like to begin?

Yes, thank you. Thank you all for joining us today. I extend my warm welcome to this investor call. Starting with slide two. Discount Group delivered strong Q3 results with net income of 1.13 billion shekels and ROE of 13.7%. Adjusted net income for one-offs amounted to 1.25 billion shekels, representing a ROE of 15.1%. Banking operations in Israel, comprising of discount bank and mercantile, recorded 890 million shekels and an ROE of 14.3%. Discount cost efficiency ratio was 44% in Q3, while the cost income ratio in the banking activity in Israel was slightly lower at 42.6%. Total credit in the group grew by 3.4%, accompanied by a solid credit quality matrix, while net interest income, NII, remained flat QOQ. In light of this result, the board decided to pay out 50% of Q3 net income. Moving to slide three. Despite two challenging years, Discount Bank has consistently shown double-digit ROE of 14% and stable net income. These figures exhibit the strength of bank and the resilience of the Israeli economy. At slide four, on the left side, 2025 GDP is now expected to grow by 2.5%. That said, Bank of Israel expects 2026 GDP to rebound notably, with GDP growth at 4.7%. On the right-hand side, the job market remained resilient throughout this time, maintaining a healthy unemployment rate of 3.4%. On slide five, We summarize our credit portfolio growth and structure. In the third quarter, it's continuing its strong growth across most segments with a 3.4 growth rate quarter-on-quarter and the 8.9 year-over-year. The corporate segment continues to show notable strengths as credit grew by 5.6 quarter-on-quarter and 17.4 year-over-year. SME credit grew 1.6 and 4.6 respectively, while household credit grew a healthy 4.3% Q and Q and mortgage grew by 2.2 Q and Q and 7.8 year over year.

Mr. Dorfman, we can't hear you.