Bank Leumi, led by CEO Hanan Friedman, continues to impress the banking sector. On Wednesday, the bank reported a record net profit of NIS 2.83 billion for the second quarter of 2026, an 8.5% increase compared with the same period last year. The profit represents a return on equity of 16.3% (on equity standing at NIS 70.6 billion), the highest return among the banks.
In the first half of 2026, profit grew by 3.6% to NIS 5.18 billion. The most striking figure in the bank's financial statements is the efficiency ratio (operating expenses divided by operating income), which dropped in the second quarter to a global-standard minimum of just 24.7%, compared with 29.1% in the previous quarter.
Strong efficiency ratios and credit expansion drive Bank Leumi’s performance
The bank attributed the result to the prudent implementation of its technological leadership and AI strategy. The bank will distribute a dividend (including share buybacks) totaling NIS 1.4 billion.
In addition to the efficiency figures, the bank presented a significant 15.8% increase in net credit to the public, which totaled NIS 566.5 billion, alongside maintaining a low loss expense ratio on credit. This figure allowed Leumi to show a marked increase in financing profits, alongside one-off income from subsidiary operations.
Leumi also absorbed an expense of hundreds of millions of shekels due to the Smotrich tax. Deposits grew by 3.4% to NIS 719 billion, including NIS 230.3 billion from private customers, an increase of 1.3%.
First International Bank reports quarter profit growth and high dividend distribution
First International Bank of Israel (FIBI) profits soared in the second quarter by 21.5% to NIS 583 million. The profit represents a 16% return on equity, which totaled NIS 14.9 billion. In the first half of the year, the bank earned NIS 1.06 billion, an 8.9% decline compared with the corresponding half.
The bank's board of directors decided on a dividend distribution of NIS 558 million, representing about 96% of net profit for the quarter. The distribution includes 50% of net profit for the second quarter and an additional amount from the balance of profits fit for distribution.
Credit to the public jumped by 20.1% to NIS 164.2 billion. The customer asset portfolio grew by 20.8% to NIS 1.23 trillion. Public deposits grew by 11.7% to NIS 251.4 billion.
Total net income in the first half of 2026 came to NIS 3.449 billion, a 2.5% decrease compared with the corresponding period last year, stemming mainly from macroeconomic changes: The CPI, interest rates, and exchange rates, and was partially offset by an increase in financing activity volumes and an increase in fees.
The major news emerging from the bank's financial statements concerns the board's decision to merge its subsidiary MATAF, which centralizes the bank's computing operations. The decision regarding MATAF, which employs 500 workers, was made in the midst of an exhausting labor dispute. The move is aimed at streamlining the system and advancing future moves in the computing field.
FIBI CEO Eli Cohen said: "The year 2026 sharpens the understanding that financial management requires multidisciplinary expertise and a global view. As Israel's leading bank in the capital market, we allow our customers to navigate volatile markets while building tailored investment strategies that generate added value."