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Underwriting – Raising Funds and Offerings
In 2015, 252 public offering were conducted
(bonds + shares) raising an overall amount of
about NIS 58 billion, compared with 252 offer-
ings in 2014 when an overall amount of about
NIS 44 billion was raised.
The total bonds raised in 2015, in public offering,
amounted to about NIS55 billion (179 offerings),
which represented a rise of about 39.5% com-
pared with 2014 (in which about NIS 39 billion
was raised). The total amount of bonds raised in
2015 represented about 94% of the total funds
raised during the year (compared with about 89%
in 2014).
Total capital raised (shares) in 2015, in public
offerings, amounted to about NIS 3.4 billion (73
offerings), representing a decline of about 28%
compared with 2014 (in which about NIS 4.7 bil-
lion was raised).
An analysis of the funds raised according to sec-
tors finds that the real estate and construction
sector raised about NIS21.7 billion in 2015 (com-
pared with about NIS 17.6 billion in 2014). In
terms of the number of offerings, it can be seen
that the real estate and construction sector led in
2015 with 114 offerings as well as in 2014 with
124 offerings.
In terms of the amount of funds raised, the indus-
try in second place in 2014-2015was the banking
sector. In 2015, this sector raised about NIS 18.3
billion (compared with about NIS 11 billion in
2014). In terms of the number of offerings, the
sector in second place in 2014-2015 was the
medical technology industry with 36 offerings in
2015 (compared with 29 offerings in 2014).
Banks
In 2015, Israel's five largest banks (Hapoalim,
Leumi, Mizrahi-Tefahot, Discount and First Inter-
national) reported net profit of NIS 8.2 billion,
an increase of 28% compared to 2014 (NIS 6.4
billion in 2014 and NIS 6.9 billion in 2013). The
increase in profit resulted primarily from weaker
results that Leumi and Discount had reported in
2014 – Leumi was required to set aside about
NIS 1 billion for an investigation by the U.S au-
thorities. In addition, Bank Leumi reported a one-
time income of about NIS 1 billion in 2015 from
realizing assets, a measure which increased its
profit. Total fees collected by the five big banks
amounted to NIS 14.8 billion (compared with NIS
15 billion in 2014). Total income from interest at
the five big banks amounted to about NIS 24.5
billion (similar to 2014). The five large banks cre-
ated return on equity (the ratio between net profit
and equity) of about 8.45% (comparedwith about
7% in 2014 and about 8.3% in 2013). Along
with the challenge of maintaining profitability,
the banks were also forced to cope with negative
influences such as a low interest environment as
well as the need to meet regulatory capital goals
(lowering ratio to leveraging, improving liquidity
ratios, improving core capital adequacy ratios,
and more).
Investment Houses
The investment houses sector in Israel has un-
dergone major changes in recent years, both in
regulatory and competitive terms. On the one
hand, the amount of assets managed has risen,
but at the same time so have the regulatory
requirements, and these have weighed on the
investment houses. In 2015, the sector under-
went amarketing transformation that focused on
the private customer (the household consumer),
while in the past the main marketing efforts by
investment houses concentrated on the media-
tors working for the private customer (insurance
agents, banks' investment consultants, etc.). The
Investment houses decided to directly approach
private customers after seeking new sources of
growth and profit and they understood that ap-
proaching customers directly can help them sell
additional financial products. In addition, private
customers are currently aware andmore involved
in the financial sector and consequently the in-
vestment houses are obliged to provide themwith
more information. Psagot Investment House's
position at the top of the rankings remains firm
and the company continues to lead the invest-
ment house rankings for the past eighth year. The
Meitav Dash, Excellence Nessuah and Altshuler
Shaham investment houses have kept their rank-
ing positions and are ranked second, third and
fourth. The Yelin Lapidot Investment House has
risen from sixth place to fifth place with a rise of
18% in its investment portfolio, stemming from
a rise in funds raised as well as a decline in re-
payments as well as a rise in values. For the first
time this year, alongside the investment house
rankings, a ranking table for portfolio manage-
ment companies is being presented (according
to the total of the portfolios managed in millions
of shekels).
Financial Services
300
60,000
55,000
250
50,000
45,000
200
40,000
35,000
150
30,000
25,000
100
20,000
15,000
50
10,000
5,000
0
0
2015
2014
2013
2012
2011
2010
2009
Number of Issuances Overall Volume of Raised Capital (in million NIS)
Source: Tel-Aviv Stock Exchange
100
304
160
109
283
Overall Volume of Raised Capital and Number of Issuances Multiyear
252
252
25
20
15
10
5
0
Oil
finance
Biomed
Technology
Industry
Insurance
Investments
Trade &
Services
Banks
Real Estate &
Construction
No. of Issuances in 2014 No. of Issuances in 2015
Source: Tel-Aviv Stock Exchange
Number of Issuances According to Sectors
27
2016
|
DUN’S
100
DUN’S
100
|
2016
DUN’S
100
|
2016
2016
|
DUN’S
100
Financial Services