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TEL AVIV, Dec 27 (Reuters) - Israel Discount Bank, the country’s fourth-largest bank by assets, said on Wednesday that its board has authorised dividend payments of up to 15 percent of net profit, starting in the first quarter of 2018.
Discount Bank, which for years suffered from a weak capital adequacy ratio, has not had a dividend policy since 1996, a spokeswoman for the bank said. It paid a one-off special dividend of 250 million shekels ($72 million) in 2008.
The new dividend policy was adopted after the bank complied with capital adequacy requirements, improved its financial results and received approval from the Bank of Israel’s supervisor of banks.
Shares in Discount Bank were up 0.9 percent at 10.09 shekels in midday trading.
Discount Bank is the last of Israel’s top banks to restore dividend policies that were shelved after the global financial crisis. Its main rivals have policies stipulating payments of up to 40 percent of net profit. ($1 = 3.4831 shekels) (Reporting by Tova Cohen; Editing by David Goodman)