Mizrahi Set for Biggest Gain in 4 Months on Plan: Tel Aviv Mover

Mizrahi Tefahot Bank Ltd. (MZTF) headed for the largest gain in almost four months after the country’s fourth-largest bank approved a business plan that boosts return on equity to 17 percent.

The shares added 3.1 percent, poised for the biggest gain since Mar. 25, to 28.88 shekels as of 1:22 p.m. in Tel Aviv. The Tel Aviv Banking Index (TABANK) fell 0.7 percent to 806.22 and the TA-25 fell 1.1 percent.

“While the aims are very ambitious, they met the aims of their previous strategic plan and they deserve credit for that,” Adi Scop, a banking analyst and the head of sales at I.B.I.- Israel Brokerage & Investments Ltd. said today by phone. “If they meet the new targets, I tip my hat to them.”

Mizrahi’s board approved a five-year plan that envisages meeting core capital requirements by January 2014 and maintaining the existing dividend policy. The bank said the ROE target is based on the current core capital requirement of 7.5 percent.

To contact the reporters on this story: David Wainer in Tel Aviv at dwainer3@bloomberg.net; Shoshanna Solomon in Tel Aviv at ssolomon22@bloomberg.net

To contact the editor responsible for this story: Claudia Maedler at cmaedler@bloomberg.net

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