Leumi Mortgage merger comes into effect: will operate as an independent function within the Banking Division of Leumi
Following the merger, Leumi Mortgage is expected to expand its operations throughout Israel

Leumi announced today that the merger of Leumi Mortgage Bank with Bank Leumi comes into effect this morning, as decided by the Leumi Board of Directors about a year ago. As of today, Leumi Mortgage will operate as an independent department within the Banking Division, and will be headed by Mr. Amir Lazar, who will report to the Head of the Banking Division, Ms. Tamar Yasur.

The Leumi Mortgage merger takes place against the background of record results of the Group's mortgage activity. In the Group's financial reports for the third quarter of 2012, the balance of mortgage credit amounted to approximately NIS 59 billion. New housing loans granted in the first nine months of 2012 totaled approximately NIS 9.4 billion, the profit for this period was NIS 241 million, and return on equity was 11.4%.

Leumi Mortgage was founded in 1921, and is the oldest mortgage bank in Israel. Today Leumi's mortgage activity is carried out through 110 representative offices, most of them located in Leumi branches. The purpose of the merger is to improve the synergy between the Mortgage Department and the other services offered by Leumi, and following the merger the Mortgage Department is expected to expand the number of its offices and representatives throughout Israel.

At an internal event marking the merger coming into effect, held today at Leumi in the presence of the managers and employees, the Chairman of the Board of Directors, Mr. David Brodet, thanked them for their dedication and professionalism during the merger process, noting that their challenge from now on would be to realize the huge potential for synergy between the Mortgage Department and other units of the Bank. Mr. Brodet thanked the retiring CEO of Leumi Mortgage Bank, Mr. Shuki Borstein, for his major contribution to the Leumi Group throughout the years, and for his great dedication to the bank, its employees and its activities.

The Head of the Banking Division, Ms. Tamar Yasur, said that the entire Bank, and the Division that she heads, are committed to the success of the merger process and would allocate all the resources needed to this end. "We have no doubt that everyone will benefit from the process," said Yasur. "Customers will benefit from an enhanced customer experience thanks to our ability to provide a comprehensive and optimal solution for their needs, the bank will benefit from the synergy and expansion of its mortgage operations, and the employees will benefit from the broadening of areas of interest and the opening of new career options for them, in all parts of the Group."

The Head of the Mortgage Department, Mr. Amir Lazar, said: "Leumi Mortgage customers will continue to enjoy the same excellent service, the variety of attractive channels and products, and the possibility of long term planning of their mortgage. The interface with the customers will not change, but their service experience will be more complete, thanks to Leumi's extensive package of high-quality services and products, spread throughout the country."

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