However, revenue is still expected to be lower than in 2007.
Merrill Lynch predicts that 2009 will be a better year for Israeli banks than 2008. Merrill Lynch analyst Haim Israel says that the banks' aggregate revenue in 2009 will be 22% higher than in 2008, when they made massive write-offs. However, he nevertheless predicts that 2009 revenue will be 28% less than in 2007, and the same as in 2005-06.
Merrill Lynch gives a "Buy" recommendation for Bank Leumi (TASE: LUMI), a "Neutral" recommendation for Bank Hapoalim (TASE: POLI; LSE:80OA) and Mizrahi Tefahot Bank (TASE:MZTF), and an "Underperform" recommendation for Israel Discount Bank (TASE: DSCT).
Merrill Lynch sets a target price of NIS 12.20 for Bank Leumi, a 41% premium on its opening price today; NIS 9.50 for Bank Hapoalim, 11.8% over today's opening price; NIS 22.80 for Mizrahi Tefahot Bank, a 13% premium; and NIS 3.30 for Discount Bank, 8.5% below today's opening price.
Published by Globes [online], Israel business news - www.globes-online.com - on January 19, 2009
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