First International Bank of Israel Reports Financial Results for the Second Quarter of 2026

First International Bank of Israel Reports Financial Results for the Second Quarter of 2026

PR Newswire

TEL AVIV, Israel, Aug. 12, 2026

TEL AVIV, Israel, Aug. 12, 2026 /PRNewswire/ -- First International Bank of Israel (TASE: FIBI) one of Israel's major banking groups, today announced its results for the Second quarter of 2026. Statements reflect accelerated growth and high profitability while maintaining financial strength.

Financial HighlightsNet income for Q2 2026: NIS 583 million.Return on Equity: 16.0%Return on Equity excluding the special tax levy: 17.8%Net income for H1 2026: NIS 1,063 millionReturn on Equity: 14.5%Return on Equity excluding the special tax levy: 16.2% The Board of Directors approved a dividend distribution of approximately NIS 558 million, representing approximately 96% of total net income for the quarter. This distribution includes approximately 50% of the net income for Q2 2026, and an additional amount drawn from the remaining distributable profits.Dividend yield as of June 30, 2026, stood at 6.1%.Credit to the public grew 20.1% compared with the prior-year period and 5.9% compared with the end of Q1 2026.The total client asset portfolio grew 20.8% from the prior-year period and 5.7% from year-end 2026, totaling approximately NIS 1.23 trillion.Shareholders' equity totaled approximately NIS 14.9 billion, an increase of 4.5% compared with the prior-year period. Common Equity Tier 1 ratio: 10.87%.FIBI Group's net income in Q2 2026, totaled NIS 583 million, compared with NIS 480 million in Q1 2026, an increase of 21.5%, and compared with NIS 637 million in the prior-year quarter, a decrease of 8.5%. Return on Equity reached 16.0%. Return on Equity excluding the special tax levy imposed on the Bank in 2026 reached 17.8%.Net income in H1 2026 totaled NIS 1,063 million, a decrease of 8.9% compared with the prior-year period. Return on Equity reached 14.5%. Return on Equity excluding the special tax levy imposed on the Bank in 2026 reached 16.2%.Credit to the public totaled NIS 164.2 billion, up 20.1% from the prior-year period, and up 5.9% from Q1 2026. The growth in credit risk was driven primarily by lending to the financial services sector.The Bank maintains a high-quality credit portfolio—exposure to problem credit risk declined 25% in H1 2026, compared with the prior-year period. The NPL ratio (non-accrual loans or loans 90 days or more past due as a percentage of credit to the public) continued to improve, reaching 0.40% compared with 0.46% at year-end 2025. Deposits from the public totaled approximately NIS 251.4 billion, up 11.7% compared with the prior-year period and up 8.6% compared with the end of Q1 2026.The total client asset portfolio grew approximately 20.8% compared with the prior-year period, reaching approximately NIS 1.23 trillion.Total net revenues in H1 2026 amounted to NIS 3,449 million, a decrease of 2.5% compared with the prior-year period, driven primarily by macroeconomic shifts in the CPI, interest rates, and exchange rates, and partially offset by growth in financing activity volumes and fee income.Fee and commission income in H1 2026 grew 9.1% compared with the prior-year period, totaling NIS 937 million.Shareholders' equity totaled approximately NIS 14.9 billion, an increase of 4.5% compared with the prior-year period. The Common Equity Tier 1 ratio stands at 10.87%, exceeding the regulatory capital requirement by 1.63% and facilitating the continued growth of the Group's operations and accelerated distribution of surplus capital as dividends, in accordance with the framework approved at the beginning of the year. Operating and other expenses in H1 2026 totaled NIS 1,626 million, an increase of NIS 41 million (2.6%) compared with the prior-year period; the increase was driven primarily by an increase in other expenses, and in particular, commission expenses stemming from the Bank's expanded capital markets operations, and was offset by an increase in revenues. The efficiency ratio for H1 2026 stands at 47.7%, and for Q2 2026—at 46.1%.The Board of Directors approved a dividend distribution to shareholders totaling approximately NIS 558 million, representing 96% of total net income for the quarter. This distribution includes approximately 50% of the net income for Q2 2026 and an additional amount drawn from the remaining distributable profits. The dividend yield as of 30.6.2026, stood at 6.1%.Eli Cohen, CEO of First International Bank of Israel: "Developments in 2026 reinforce the insight that financial management demands multidisciplinary expertise and a global perspective. As the leading bank in the Israeli capital markets, we enable our clients to navigate volatile markets while building tailored investment strategies that generate added value.Alongside our strong position in the capital market, we remain a key financial partner for leading companies in the Israeli economy, small businesses, and individual clients. Our clients' trust and commitment facilitate accelerated growth in our credit portfolio and in client assets. The Bank's strong results for Q2 2026 offer the clearest proof that in an era of constant shifts in the domestic and global economy alike, clients seek, above all, an anchor of stability, expertise, and experience. FIBI continues to deliver just that, while maintaining strong capital adequacy and one of the highest-quality credit portfolios in the banking system.In addition to expanding our business operations, we are harnessing the latest technology as a significant lever for efficiency gains: the digital revolution and the adoption of AI, automation, and workflow digitization enable us to accelerate the improvement in the Bank's operational efficiency and enhance client service.As the banking system's leader in dividend yield, we continue to manage our capital actively and effectively, combining rapid business growth with increased value distribution to shareholders."Condensed principal financial information and principal execution indices* Principal execution indicesFor the three months ended June 30,For the six months ended June 30,For the year endedDecember 31,20262025202620252025in %Return on equity attributed to shareholders of the Bank(1)(2)16.018.3(2)14.517.116.2Return on average assets(1)0.820.990.760.910.86Ratio of total income to average assets(1)2.52.92.42.72.6Ratio of interest income, net to average assets (1)1.72.01.61.91.8Ratio of fees to average assets (1)0.70.70.70.70.7Efficiency ratio46.143.147.745.246.1As of June 30,As of December 31,202620252025in %Ratio of tier 1 equity capital10.8711.5411.10Leverage ratio4.855.265.04Liquidity coverage ratio (3)127134129Net stable funding ratio122125127Principal credit quality indicesFor the three months ended June 30,For the six months ended June 30,For the year endedDecember 31,20262025202620252025in %Ratio of provision for credit losses to credit to the public0.961.190.961.191.11Ratio of total provision for credit losses (4) to credit to the public1.081.331.081.331.25Ratio of non-accruing debts or in arrears of 90 days or more to credit to the public0.400.460.400.460.46Ratio of provision for credit losses to total non-accruing credit to the public249.2271.5249.2271.5251.5Ratio of net write-offs to average total credit to the public (1)0.04(0.03)0.05(0.04)(0.01)Ratio of expenses (income) for credit losses to average total credit to the public(1)(0.10)(0.05)(0.05)(0.04)0.01Principal data from the statement of incomeFor the three months ended June 30,For the six months ended June 30,2026202520262025NIS millionNet profit attributed to shareholders of the Bank5836371,0631,167Interest Income, net1,1921,2902,2822,444Income from credit losses(38)(16)(38)(27)Total non-Interest income5715511,1291,065 Of which: Fees473434937859Total operating and other expenses8127931,6261,585 Of which: Salaries and related expenses450449887902Primary net profit per share of NIS 0.05 par value (NIS)5.826.3510.6011.63Diluted net profit per share of NIS 0.05 par value (NIS)5.826.3510.6011.63Principal data from the balance sheet30.6.2630.6.2531.12.25NIS millionTotal assets293,955262,507277,833of which: Cash and deposits with banks83,53379,14283,776 Securities38,46537,43238,266 Credit to the public, net162,601135,092146,374Total liabilities278,421247,537262,634of which: Deposits from the public251,394225,124238,509 Deposits from banks1,3732,1411,906 Bonds and subordinated capital notes11,5514,5176,791Capital attributed to the shareholders of the Bank14,89914,25814,614Additional data30.6.2630.6.2531.12.250.01 NISShare price21,09024,37025,050Dividend per share7504391,191* The condensed financial statements are prepared in accordance with the Public Reporting Directives and guidelines of the Supervisor of Banks, which primarily adopt accounting principles generally accepted in the United States (U.S. GAAP).(1) Annualized.(2) The return on equity attributed to shareholders of the bank, excluding the excess of ratio of tier 1 equity capital above the goal set by the Board of Directors (9.50%) and excluding the special tax levy applicable to the bank in 2026, amounted to 20.0% in the second quarter of 2026 and 18.4% in the first half of 2026.excluding the special tax levy applicable to the bank in 2026, amounted to 20.0% in the second quarter of 2026 and 18.4% in the first half of 2026.(3) The ratio is computed in respect of the three months ended at the end of the reporting period.(4) Including provision in respect of off-balance sheet credit instruments.CONSOLIDATED STATEMENT OF INCOME(NIS million)For the three monthsended June 30For the six monthsended June 30For the year Ended December 3120262025202620252025(unaudited)(unaudited)(unaudited)(unaudited)(audited)Interest Income2,9243,0195,6415,82211,771Interest Expenses1,7321,7293,3593,3786,949Interest Income, net1,1921,2902,2822,4444,822Expenses (income) from credit losses(38)(16)(38)(27)19Net Interest Income after income from credit losses1,2301,3062,3202,4714,803Non- Interest IncomeNon-Interest financing income 89117183205312Fees4734349378591,777Other income9-9111Total non- Interest income5715511,1291,0652,100Operating and other expensesSalaries and related expenses4504498879021,769Maintenance and depreciation of premises and equipment8282165166338Amortizations and impairment of intangible assets39367871146Other expenses241226496446937Total operating and other expenses8127931,6261,5853,190Profit before taxes9891,0641,8231,9513,713Provision for taxes on profit4054167547701,386Profit after taxes5846481,0691,1812,327The bank's share in profit of equity-basis investee, after taxes2616443835Net profit:Before attribution to non–controlling interests6106641,1131,2192,362Attributed to non–controlling interests(27)(27)(50)(52)(102)Attributed to shareholders of the Bank5836371,0631,1672,260NISPrimary profit per share attributed to the shareholders of the BankNet profit per share of NIS 0.05 par value5.826.3510.6011.6322.53Diluted profit per share attributed to the shareholders of the BankNet profit per share of NIS 0.05 par value5.826.3510.6011.6322.52STATEMENT OF COMPREHENSIVE INCOME(NIS million)For the three monthsended June 30For the six monthsended June 30For the year Ended December 3120262025202620252025(unaudited)(unaudited)(unaudited)(unaudited)(audited)Net profit before attribution to non–controlling interests6106641,1131,2192,362Net profit attributed to non–controlling interests(27)(27)(50)(52)(102)Net profit attributed to the shareholders of the Bank5836371,0631,1672,260Other comprehensive income (loss) before taxes:Adjustments of available for sale bonds to fair value, net175126(59)164281Adjustments of liabilities in respect of employee benefits(1)(19)(17)189(69)Other comprehensive income (loss) before taxes156109(41)173212Related tax effect(65)(43)18(67)(86)Other comprehensive income (loss) before attribution to non–controlling interests, after taxes9166(23)106126Less other comprehensive income attributed to non–controlling interests26-610Other comprehensive income (loss) attributed to the shareholders of the Bank, after taxes8960(23)100116Comprehensive income before attribution to non–controlling interests7017301,0901,3252,488Comprehensive income attributed to non–controlling interests(29)(33)(50)(58)(112)Comprehensive income attributed to the shareholders of the Bank6726971,0401,2672,376(1) Mostly reflects adjustments in respect of actuarial assessments as of the end of the period regarding defined benefits pension plans, of amounts recorded in the past in other comprehensive income. CONSOLIDATED BALANCE SHEET (NIS million)June 30,December 31,202620252025(unaudited)(unaudited)(audited)AssetsCash and deposits with banks83,53379,14283,776Securities38,46537,43238,266Securities borrowed or purchased under agreements to repurchase254275355Credit to the public164,181136,724148,014Provision for Credit losses(1,580)(1,632)(1,640)Credit to the public, net162,601135,092146,374Credit to the government9051,3961,607Investments in investee companies925884875Premises and equipment863855871Intangible assets388355404Assets in respect of derivative instruments3,6945,7293,934Other assets(2)2,3271,3471,371Total assets293,955262,507277,833Liabilities and Shareholders' EquityDeposits from the public251,394225,124238,509Deposits from banks1,3732,1411,906Deposits from the Government 1,4911,0202,032Securities lent or sold under agreements to repurchase4,7034,1804,107Bonds and subordinated capital notes11,5514,5176,791Liabilities in respect of derivative instruments3,8156,1764,336Other liabilities(1)(3)4,0944,3794,953Total liabilities278,421247,537262,634Capital attributed to the shareholders of the Bank14,89914,25814,614Non-controlling interests635712585Total capital15,53414,97015,199Total liabilities and capital293,955262,507277,833(1) Of which: provision for credit losses in respect of off-balance sheet credit instruments in the amount of NIS 193 million and NIS 180 million and NIS 210 million as of 30.6.26, 30.6.25 and 31.12.25, respectively.(2) Of which: other assets measured at fair value in the amount of NIS 4 million and NIS 21 million and NIS 5 million as of 30.6.26, 30.6.25 and 31.12.25, respectively.(3) Of which: other liabilities measured at fair value in the amount of NIS 4 million and NIS 21 million and NIS 5 million as of 30.6.26, 30.6.25 and 31.12.25, respectively.STATEMENT OF CHANGES IN EQUITY(NIS million)For the three months ended June 30, 2026 (unaudited)Share capital and premium (1)Capital reserves from benefit due to share-based payment transactionsTotal capitaland capital reservesAccumulated other comprehensive income (loss)Retained earnings (2)TotalNon- controlling interestsTotal capitalBalance as of March 31, 20269187925(174)13,71414,46560615,071Net profit for the period----58358327610Dividend----(240)(240)-(240)Benefit due to share-based payment transactions-22--2-2Other comprehensive income, after tax effect---89-89291Balance as of June 30, 20269189927(85)14,05714,89963515,534For the three months ended June 30, 2025 (unaudited)Sharecapital and premium (1)Capital reservesfrom benefit due to share-basedpaymenttransactionsTotal capital and capital reservesAccumulated other comprehensive income (loss)Retainedearnings (2)TotalNon- controlling interestsTotal capitalBalance as of March 31, 20259271928(138)12,98313,77367914,452Net profit for the period----63763727664Dividend----(212)(212)-(212)Other comprehensive income, after tax effect---60-60666Balance as of June 30, 20259271928(78)13,40814,25871214,970For the six months ended June 30, 2026 (unaudited)Share capital and premium (1)Capital reserves from benefit due to share-based payment transactionsTotal capital and capital reservesAccumulated other comprehensive income (loss)Retained earnings (2)TotalNon- controllinginterestsTotalcapitalBalance as of December 31, 2025 (audited)9273930(62)13,74614,61458515,199Net profit for the period----1,0631,063501,113Dividend----(752)(752)-(752)Repurchase of shares(9)-(9)--(9)-(9)Benefit due to share-based payment transactions-66--6-6Other comprehensive loss, after tax effect---(23)-(23)-(23)Balance as of June 30, 20269189927(85)14,05714,89963515,534For the six months ended June 30, 2025 (unaudited)Sharecapital and premium(1)Capital reserves from benefit dueto share-based payment transactionsTotal capital and capital reservesAccumulatedothercomprehensiveincome (loss)Retainedearnings(2)TotalNon-controlling interestsTotalcapitalBalance as of December 31, 2024 (audited)927-927(178)12,68113,43065414,084Net profit for the period----1,1671,167521,219Dividend----(440)(440)-(440)Benefit due to share-based payment transactions-11--1-1Other comprehensive income, after tax effect---100-1006106Balance as of June 30, 20259271928(78)13,40814,25871214,970For the year ended December 31, 2025 (audited)Sharecapital andpremium (1)Capital reservesfrom benefit dueto share-basedpaymenttransactionsTotal capitaland capitalreservesAccumulatedothercomprehensiveincome (loss)Retainedearnings (2)TotalNon- controlling interestsTotal capitalBalance as of December 31, 2024927-927(178)12,68113,43065414,084Net profit for the period----2,2602,2601022,362Dividend----(1,195)(1,195)(181)(1,376)Benefit due to share-based payment transactions-33--3-3Other comprehensive income, after tax effect---116-11610126Balance as of December 31, 20259273930(62)13,74614,61458515,199(1) Including share premium of NIS 304 million as from 1992 onwards (as of 30.6.25 and 31.12.25 - NIS 313 million).(2) Including an amount of NIS 2,391 million which cannot be distributed as dividend.Contact:Dafna ZuckerFirst International Bank of Israelzucker.d@fibi.co.il+972-3-519-6224