First International Bank Of Israel, IL0005930388

First International Bank of Israel stock weighs lending growth against lower profit

Published on 11/05/2026 at 10:47 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

First International Bank of Israel stock remains tied to strong lending growth despite weaker first-half earnings. Asset quality improved.

Growth offsets weaker first-half profit

Second-quarter net income reached 583 million NIS, while return on equity was 16.0 percent.
First-half net income fell 8.9 percent year over year as net revenue declined 2.5 percent.
Public credit expanded 20.1 percent and the non-performing loan ratio improved to 0.40 percent.

First International Bank Of Israel, IL0005930388, Illustration mit AI erstellt.

First International Bank of Israel reported solid second-quarter profitability alongside weaker first-half earnings in a CEO statement published on October 23, 2026. The bank said credit expansion and improving asset quality supported operations as macroeconomic conditions weighed on revenue.

Quarterly profit remains resilient

Net income for the second quarter reached 583 million NIS, compared with 480 million NIS in the first quarter and 637 million NIS in the prior-year quarter. Return on equity was 16.0 percent, rising to 17.8 percent when excluding the special tax levy imposed on the bank in 2026, according to the First International Bank of Israel investor-relations statement.

For the first half, net income totaled 1.063 billion NIS, down 8.9 percent from the prior-year period. Net revenue fell 2.5 percent to 3.449 billion NIS, with the bank citing changes in consumer prices, interest rates and exchange rates. Fee and commission income increased 9.1 percent to 937 million NIS.

Lending growth and asset quality

Credit to the public rose 20.1 percent year over year and 5.9 percent from the end of the first quarter, reaching 164.2 billion NIS. The bank said growth in credit risk was driven primarily by lending to the financial-services sector.

Asset quality improved at the same time. Exposure to problem credit risk declined 25 percent in the first half, while the non-performing loan ratio fell to 0.40 percent from 0.46 percent at the end of 2025.

Capital returns remain important

The board approved a dividend distribution of approximately 558 million NIS, equal to 96 percent of second-quarter net income. The bank's common equity tier-one ratio stood at 10.87 percent, supporting continued balance-sheet expansion and shareholder distributions.