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Israel Discount Bank Buys Hias Immigrant Bank; Fiscal Statement Gives Details

January 12, 1968
See Original Daily Bulletin From This Date

Israel Discount Bank, the country’s second largest bank, has purchased Hias Immigrants Bank., it was announced here today. The Hias Bank will be operated as the IDB Trust Company, according to Daniel Rekanatti, Discount general director, who said the new trust company will be a member of the Federal Deposit Insurance Corporation. Its capital will be $2.5 million, Mr. Rekanatti added.

The general director said the firm’s New York branch, situated on Fifth Avenue there, contributed a very significant part toward the bank’s 10 million pound ($3.5 million) profit for 1967.

As of December 31, 1967, the company’s total assets reached a record of 2,133,949,597 Israeli pounds ($609,699,885) up from 1,643,571,591 pounds ($547,857,197), an increase of 30 percent. The 1967 Dollar equivalents reflect the recent devaluation of the Israeli pound from 3 to $1 to 3.50 to $1.

The net operating earnings for the year, after provision for taxes and transfer to inner reserves. increased from 6,946,752 Israeli pounds ($2,315,584) to 7,652,314 pound ($2,186,375). After payment of the dividend due on the preferred shares, the 1967 earnings represent 2.67 Israeli pounds ($.76) per ordinary share, compared to 2.41 pounds ($.80) per ordinary share for 1966.

A cash dividend of 13-1/3 percent in Israeli pounds, which amounts to 1.33 pounds ($.38) per ordinary share, will be proposed to the annual meeting of the shareholders to be held on February 13. The same dividend in Israeli pounds was paid in 1966, which at the then prevailing rate of exchange was 44 cents.

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