6 February 11 14:19

http://www.globes.co.il/serveen/globes/docview.asp?did=1000620876&fid=1725

This is the first time the bank exceeded $50 million in profit since the money laundering scandal in 2005.

Israel Discount Bank (TASE: DSCT) subsidiary Israel Discount Bank of New York posted more than $50 million in profit in 2010, the first time it exceeded this threshold since the money laundering scandal in 2005. For the full year of 2010, the bank's profit rose 24% over 2009 to $53.4 million.

Discount New York disclosed its financial reports on the website of the Federal Deposit Insurance Corporation (FDIC). The bank's return on equity rose to 7.3% in 2010 from 6.5% in 2009, and its shareholders' equity rose to $761 million at the end of 2010 from $701 million a year earlier. Discount New York accounts for about a quarter of Discount Bank's equity.

The FDIC says that Discount New York is "well capitalized", with a high capital adequacy ratio of 14.6% in 2010, albeit down from 14.7% in 2009.

Discount New York's credit portfolio rose 12% to $2.9 billion at the end of 2010, 41% of its assets. Deposits fell 1.5% to $6.1 billion at the end of 2010, and its assets fell 2.1% to $9.3 billion.

Discount New York attributed the increase in profit to higher operating revenue and a $16.4 million upward revaluation of its securities available for sale. Operating expenses fell by $2.6 million, and the bank's tax liability was lower in 2010. These were offset by an $18.7 million drop in financing income, and an increase in the provision for doubtful debts.

Discount New York is the largest Israeli bank operating in the US. It has two branches in Manhattan, one each on Staten Island, in Florida, Los Angeles, Beverly Hills, and in the Cayman Islands. The bank also has representatives offices in Mexico City; Montevideo, Uruguay; Santiago, Chile; and in Brazil.