JERUSALEM, March 11 Reuters Israel Discount Bank on Monday reported a 2 dip in fourthquarter profit but boosted its dividend payout after slashing it in the previous quarter due to the fallout from Israel39;s war with Palestinian Hamas militants.

Discount39;s quarterly net profit slipped to 919 million shekels 256 million from 939 million a year earlier, while net interest income edged higher by 0.6 to 2.56 billion shekels.

Its credit loss expenses soared 70 to 390 million shekels to reflect expectations for slowdown in economy due to the war in Gaza, it said.

Discount, Israel39;s fourthlargest bank, said it would pay a dividend of 184 million shekels, or 20 of fourthquarter net income, up from 15 the previous quarter.

The bank had cut the dividend from 30 in the first two quarters of 2023 after Israel39;s banking regulator told banks to remain conservative when issuing dividends, and to provide credit while the country was at war and the economy was set to slow. The war has raged since Oct. 7 after Hamas gunmen attacked Israeli towns near Gaza.

The dividend reflected the current conditions, our confidence in our capital capacity and to ensure future growth and expected demand for credit in the next quarters, the bank said.

Its shares opened down 0.1, compared with gains of 0.5 on the broader Tel Aviv exchange. They are down 0.8 so far in 2024.

Discount39;s Tier1 capital ratio rose to 10.71 as of end 2023 from 10.25 at the end of 2022.

Discount and its peers will…