Mizrahi Drops on Concern CEO Change to Hurt Net: Tel Aviv MoverShoshanna Solomon
Mizrahi Tefahot Bank Ltd. fell for the second time this week amid concern Chief Executive Officer Eliezer Younes’s decision to step down next year may hinder the growth strategy at Israel’s fourth-largest bank.
Shares of the company, which is also the nation’s biggest mortgage provider, fell 0.8 percent, the first drop since April 22, to 35.9 shekels at the close in Tel Aviv in more than two times the three-month average daily volume. The Tel Aviv Banking Index slipped 0.8 percent.
Mizrahi in July announced a multi-year strategy as it seeks to boosts its return on equity to 17 percent by 2017. The bank has posted increases in full-year net income since 2010 and profit advanced 3 percent last year, according to data compiled by Bloomberg. That compares with a 6 percent decline in 2012 net income for Bank Hapoalim Ltd., Israel’s largest lender. Younes will end his tenure as CEO when his contract expires on April 1, capping 10 years in office, the bank said yesterday.
“Younes is considered one of the best-regarded chief executives in the Israeli banking system,” Meir Slater, an analyst at DS Securities & Investments in Tel Aviv, said today by phone. “There are concerns that a new chief executive may not meet the targets or may set up a new strategy.”
Mizrahi’s 2013 profit will probably advance 7.7 percent, according to the median estimate of three analysts compiled by Bloomberg.