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 Highlights
Net 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 million
Return 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 indices
----------------------------------------------------------------------------------------
For the
For the three year ended
months ended June For the six months December
30, ended June 30, 31,
----------------------------- ----------------- ------------------------- ----------
2026 2025 2026 2025 2025
----------------------------- -------- ------- -------- ------ ----------
in %
----------------------------- -------- ------- -------- ------- ------ ----------
Return on equity attributed to
shareholders of the Bank(1) (2) 16.0 18.3 (2) 14.5 17.1 16.2
-------
Return on average assets(1) 0.82 0.99 0.76 0.91 0.86
Ratio of total income to
average assets(1) 2.5 2.9 2.4 2.7 2.6
Ratio of interest income, net
to average assets (1) 1.7 2.0 1.6 1.9 1.8
Ratio of fees to average
assets (1) 0.7 0.7 0.7 0.7 0.7
Efficiency ratio 46.1 43.1 47.7 45.2 46.1
------------------------------ -------- ------- -------- ------- ------ ----------
As of
December
As of June 30, 31,
----------------------------- -------- -------------------------- ------ ----------
2026 2025 2025
----------------------------- -------- ------- ------- ------ ----------
in %
----------------------------- -------- ------- -------- ------- ------ ----------
Ratio of tier 1 equity capital 10.87 11.54 11.10
--------
Leverage ratio 4.85 5.26 5.04
Liquidity coverage ratio (3) 127 134 129
Net stable funding ratio 122 125 127
------------------------------ -------- ------- -------- ------- ------ ----------
Principal credit quality indices
----------------------------------------------------------------------------------------
For the
For the three year ended
months ended June For the six months December
30, ended June 30, 31,
----------------------------- ----------------- ------------------------- ----------
2026 2025 2026 2025 2025
----------------------------- -------- ------- -------- ------ ----------
in %
----------------------------- -------- ------- -------- ------- ------ ----------
Ratio of provision for credit
losses to credit to the
public 0.96 1.19 0.96 1.19 1.11
-------
Ratio of total provision for
credit losses (4) to credit
to the public 1.08 1.33 1.08 1.33 1.25
Ratio of non-accruing debts or
in arrears of 90 days or more
to credit to the public 0.40 0.46 0.40 0.46 0.46
Ratio of provision for credit
losses to total non-accruing
credit to the public 249.2 271.5 249.2 271.5 251.5
Ratio 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) 0.01
------------------------------ -------- ------- -------- ------- ------ ----------
Principal data from the statement of income
----------------------------------------------------------------------------------------
For the three
months ended June For the six months
30, ended June 30,
----------------------------- -------- ----------------- ------------------
2026 2025 2026 2025
----------------------------- -------- ------- -------- ------ ----------
NIS million
----------------------------- -------- ----------------------------------------------
Net profit attributed to
shareholders of the Bank 583 637 1,063 1,167
-------
Interest Income, net 1,192 1,290 2,282 2,444
Income from credit losses (38) (16) (38) (27)
Total non-Interest income 571 551 1,129 1,065
Of which: Fees 473 434 937 859
Total operating and other
expenses 812 793 1,626 1,585
Of which: Salaries and
related expenses 450 449 887 902
Primary net profit per share
of NIS 0.05 par value (NIS) 5.82 6.35 10.60 11.63
Diluted net profit per share
of NIS 0.05 par value (NIS) 5.82 6.35 10.60 11.63
------------------------------ -------- ------- -------- ------- ------ ----------
Principal data from the balance sheet
----------------------------------------------------------------------------------------
30.6.26 30.6.25 31.12.25
----------------------------- -------- ------- ------- ------ ----------
NIS
million
----------------------------- -------- ------- -------- ------- ------ ----------
Total assets 293,955 262,507 277,833
--------
of which: Cash and deposits
with banks 83,533 79,142 83,776
Securities 38,465 37,432 38,266
Credit to the
public, net 162,601 135,092 146,374
Total liabilities 278,421 247,537 262,634
of which: Deposits from the
public 251,394 225,124 238,509
Deposits from
banks 1,373 2,141 1,906
Bonds and
subordinated
capital notes 11,551 4,517 6,791
Capital attributed to the
shareholders of the Bank 14,899 14,258 14,614
------------------------------ -------- ------- -------- ------- ------ ----------
Additional data
----------------------------------------------------------------------------------------
30.6.26 30.6.25 31.12.25
----------------------------- -------- ------- ------- ------ ----------
0.01 NIS
----------------------------- -------- ------- -------- ------- ------ ----------
Share price 21,090 24,370 25,050
--------
Dividend per share 750 439 1,191
------------------------------ -------- ------- -------- ------- ------ ----------
(*) 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 year
For the three months For the six months Ended
ended June 30 ended June 30 December 31
----------------- ------------------------ ------------------------ ------------
2026 2025 2026 2025 2025
----------------- ----------- ----------- ----------- ----------- ------------
(unaudited) (unaudited) (unaudited) (unaudited) (audited)
----------------- ----------- ----------- ----------- ----------- ------------
Interest Income 2,924 3,019 5,641 5,822 11,771
Interest Expenses 1,732 1,729 3,359 3,378 6,949
------------------ ----------- ----------- ----------- ----------- ------------
Interest Income,
net 1,192 1,290 2,282 2,444 4,822
Expenses (income)
from credit
losses (38) (16) (38) (27) 19
------------------ ----------- ----------- ----------- ----------- ------------
Net Interest
Income after
income from
credit losses 1,230 1,306 2,320 2,471 4,803
------------------ ----------- ----------- ----------- ----------- ------------
Non- Interest
Income
Non-Interest
financing income 89 117 183 205 312
Fees 473 434 937 859 1,777
Other income 9 - 9 1 11
------------------ ----------- ----------- ----------- ----------- ------------
Total non-
Interest income 571 551 1,129 1,065 2,100
------------------ ----------- ----------- ----------- ----------- ------------
Operating and
other expenses
Salaries and
related expenses 450 449 887 902 1,769
Maintenance and
depreciation of
premises
and equipment 82 82 165 166 338
Amortizations and
impairment of
intangible
assets 39 36 78 71 146
Other expenses 241 226 496 446 937
------------------ ----------- ----------- ----------- ----------- ------------
Total operating
and other
expenses 812 793 1,626 1,585 3,190
------------------ ----------- ----------- ----------- ----------- ------------
Profit before
taxes 989 1,064 1,823 1,951 3,713
Provision for
taxes on profit 405 416 754 770 1,386
------------------ ----------- ----------- ----------- ----------- ------------
Profit after taxes 584 648 1,069 1,181 2,327
The bank's share
in profit of
equity-basis
investee, after
taxes 26 16 44 38 35
------------------ ----------- ----------- ----------- ----------- ------------
Net profit:
Before attribution
to
non--controlling
interests 610 664 1,113 1,219 2,362
Attributed to
non--controlling
interests (27) (27) (50) (52) (102)