US investment bank Citigroup has increased its holding over the past few days in Israel Discount Bank (TASE: DSCT) to 3% after buying a new tranche of shares. The purchase by Citigroup took place several days after Israel Discount Bank last week reported record net profit of NIS 3.5 billion in 2022, up 26% from 2021.
The latest investment represents a vote of confidence by Citigroup in the Israeli bank at a time when three major banks in the US collapsed and Credit Suisse also collapsed and was sold off to UBS.
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By Israeli law any party holding a stake of more than 2.5% in a publicly traded company must be reported and this strengthens the belief that Citigroup already held Discount shares before the latest purchase. In addition, it also seems that the investment was made without the involvement of any Israeli institutional body, because such a body would have reported the deal.
Israel Discount Bank currently has a market cap of NIS 21.8 billion, which gives Citigroup’s stake a value of more than NIS 650 million.
In December 2022, Israel Discount Bank announced that US investment management company Capital Research and Management Company had purchased a 2.5% stake in the bank.
Published by Globes, Israel business news – en.globes.co.il – on March 20, 2023.
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