Israel Discount Bank Ltd.'s board of directors approved Dec. 26 a new dividend policy that would allow the lender to distribute quarterly dividend payments of up to 15% of its net profit, with effect from the first quarter of 2018.
The lender said Dec. 27 that it adopted the dividend policy after meeting the goals of its capital plan, improving its financial results and obtaining approval from the Bank of Israel's supervisor of banks.
Israel Discount Bank has not distributed dividends for 20 years, apart from a single, 250 million Israeli shekel dividend in October 2008, according to Globes.
The distribution of dividends, however, remains subject to meeting the capital adequacy goals set by the central bank and the internal capital goals set, and to be set, by Israel Discount Bank's board of directors, the lender noted.
As of Dec. 27, US$1 was equivalent to 3.48 Israeli shekels.