Israel Discount Bank (DSCT.TA), Israel's third-largest bank, on Monday reported a 52 percent rise in quarterly net profit, boosted by higher income from financing, commissions and trading, Reuters reported.
The bank's board also approved expanded plans for a capital increase, including a possible rights offering for up to 500 mln ordinary shares.
Second-quarter net profit was 337 million shekels ($88.5 million), easily beating expectations of 175 million shekels, according to a Reuters poll of eight analysts.
Financing income before a provision for doubtful debts rose to 1.266 billion shekels from 1.132 billion a year earlier while the doubtful debt provision rose to 231 million shekels from 139 million.
Analysts had forecast financing income of 1.177 billion shekels and debt provisions of 282 million.
The bank's capital adequacy ratio rose to 11.49 percent from 10.22 percent at the end of 2008. Taking into account the issuance of capital in July and August, the ratio would be 12.08 percent, the bank said.
Israel's banks are required by the regulator to raise their capital adequacy ratios to 12 percent by the end of 2009.
Discount Chief Executive Giora Offer said the board approved a return on equity target range of 9-11 percent for the years 2010-2011.
Return on equity on an annualised basis reached 15.8 percent at the end of the quarter.
At 0802 GMT, shares in Discount Bank were down 1.4 percent.