First International Bank of Israel Reports Financial Results for the First Quarter of 2025
PR Newswire
TEL AVIV, Israel, May 14, 2025
Results Reflect continued growth and strong profitability while maintaining financial stability
TEL AVIV, Israel, May 14, 2025 /PRNewswire/ -- First International Bank of Israel (TASE: FIBI) one of Israel's major banking groups, today announced its results for the first quarter of the year.
Financial Highlights
-- Net income of NIS 530 million in the first quarter of 2025 return on
equity of 15.7%
-- Pre-tax income grew by 4.1%, compared with the same quarter in the
previous year and amounted to NIS 887 million
-- Credit to the public, net, increased by 14.6% compared with the same
period in the previous year and by 2% in the first quarter of the year
-- Deposits by the public, net, increased by 12.4% compared with the same
period in the previous year and by 2.9% in the first quarter of the year
-- Customer's assets grew by 30% compared with the same period in the
previous year and by 11.7% in the first quarter of the current year,
reaching NIS 937 billion
-- Equity attributed to shareholders in the Bank amounted to NIS 13,773
million, an increase of 2.6% compared to the end of 2024.
-- The tier-1 shareholders' equity stood at 11.31%
-- The Bank's Board of Directors decided to distribute a dividend for the
first quarter of the year of NIS 212 million, representing a rate of 40%
of the net income
Financial Results of the First Quarter of 2025
The First International Bank Group's net income amounted to NIS 530 million in the first quarter of 2025, a decrease of 6.9% compared with the same quarter last year. Return on equity reached 15.7%.
Pre-tax income grew by 4.1% compared with the same quarter last year and amounted to NIS 887 million. The increase in the effective tax rate compared with the same quarter last year, was primarily as a result of income recorded from prior years reported in the comparable period last year, amounting to NIS 49 million, and due to an increase in the special tax that is imposed on banks in Israel.
Credit to the public, net amounted to NIS 132 billion, an increase of 14.6% compared with last year and an increase of 2% in the first quarter of the year.
Deposits by the public amounted to approximately NIS 221 billion, an increase of 12.4% compared with last year and an increase of 2.9% in the first quarter.
The total customer assets portfolio increased by 30% compared with last year and by 11.7% in the first quarter of the year and amounted to NIS 937 billion.
Equity attributed to the shareholders of the Bank increased to NIS 13.8 billion, an increase of 2.6% compared to the end of 2024. The tier 1 shareholders' equity ratio stood at 11.31% - approximately 2.1% above the equity that is required by regulation, allowing for continued growth in the Group's activity.
Income on credit losses amounted to NIS 11 million in the first quarter of 2025, as compared with income of NIS 2 million in the same period in the previous year.
The quality of the credit portfolio - the NPL ratio (the balance of non-accruing debts or debts that are in arrears of 90 days or more to the balance of the credit to the public) improved and reached 0.46% at the end of the first quarter, compared to 0.6% in the same period in the previous year.
Operating and other expenses amounted to NIS 792 million, an increase of 8.3% compared with the same period in the previous year. The increase was primarily due to an increase in other expenses: capital market commisions, advertising and expenses relating to the departure of employees. The efficiency (cost income) ratio stood at 47.5%.
In light of the Supervisor of the Bank's guidance regarding "Capital planning and profits distribution policies", the Bank's Board of Directors decided to approve the distribution of a cash dividend in an amount of NIS 212 million to the shareholders, representing 40% of the net income. The Bank's Board of Directors will continue to discuss the implementation of the Bank's dividend distribution policy, pursuant to which the Bank will distribute up to 50% of the annual net income each year, in light of developments and their impact on the economy and on the Bank.
Management Comment
Eli Cohen, First International Bank's CEO commented: "We concluded a positive first quarter, continuing the growth trend that we have experienced in recent years. The results reflect our deepening activity in the capital markets and in credit, they reflect our focus on the unique needs of our customers, and our ability to provide excellent levels of service, even during uncertain times. This was achieved while maintaining the high quality of our credit portfolio, and a strong capital base and high liquidity.
"We have continued to expand our offerings of advanced products for both private and business customers during the quarter, and we have also strengthened our innovation and digital infrastructure.
"Since April, the Bank has been offering a new package of benefits and financial relief for customers, focused on evacuees and active duty/reserve soldiers, in which the Bank is granting significant benefits, amounting to approximately NIS 130 million a year.
"I am proud of our employees, who have shown commitment, professionalism and determination in order to deliver real value to our customers. I hope for the safe return of the hostages, the safety of the IDF soldiers and that the State of Israel will return to a path of peace and stability."
CONDENSED PRINCIPAL FINANCIAL
INFORMATION AND PRINCIPAL
EXECUTION INDICES
-------------------------------- ---------- ---------- -------------
For the year
For the three months ended
Principal financial ratios ended March 31, December 31,
-------------------------------- ---------------------- -------------
2025 2024 2024
-------------------------------- ---------- ---------- -------------
Percent
-------------
Principal execution indices
Return on equity attributed to
shareholders of the Bank(1) 15.7 18.7 19.0
Return on average assets(1) 0.84 1.03 1.02
Ratio of equity capital tier 1 11.31 11.78 11.31
Leverage ratio 5.22 5.27 5.18
Liquidity coverage ratio(3) 146 161 165
Net stable funding ratio 131 150 140
Ratio of total income to average
assets(1) 2.6 2.9 2.9
Ratio of interest income, net to
average assets (1) 1.8 2.0 2.0
Ratio of fees to average assets
(1) 0.7 0.7 0.7
Efficiency ratio 47.5 46.2 44.1
Credit quality indices
Ratio of provision for credit
losses to credit to the public 1.22 1.38 1.25
Ratio of total provision for
credit losses (2) to credit to
the public 1.36 1.53 1.38
Ratio of non-accruing debts or in
arrears of 90 days or more to
credit to the public 0.46 0.60 0.53
Ratio of provision for credit
losses to total non-accruing
credit to the public 275.1 236.1 244.6
Ratio of net write-offs to
average total credit to the
public (1) (0.05) (0.02) (0.04)
Ratio of income from credit
losses to average total credit
to the public (1) (0.03) (0.01) (0.01)
--------------------------------- ---------- ---------- -------------
Principal data from the For the three months
statement of income ended March 31,
-------------------------------- -------------------------------------
2025 2024
-------------------------------- ---------- ---------- -------------
NIS million
-------------------------------- ---------- ---------- -------------
Net profit attributed to
shareholders of the Bank 530 569
Interest Income, net 1,154 1,115
Income from credit losses (11) (2)
Total non-Interest income 514 466
Of which: Fees 425 365
Total operating and other
expenses 792 731
Of which: Salaries and related
expenses 453 *447
Primary and diluted net profit
per share of NIS 0.05 par value
(NIS) 5.28 5.67
--------------------------------- ---------- ---------- -------------
Principal data from the balance
sheet 31.3.25 31.3.24 31.12.24
-------------------------------- ---------- ---------- -------------
NIS million
-------------------------------- ---------- ---------- -------------
Total assets 253,748 225,941 248,563
of which: Cash and deposits with
banks 77,342 76,731 77,175
Securities 35,946 26,375 34,396
Credit to the public, net 132,026 115,199 129,416
Total liabilities 239,296 212,989 234,479
of which: Deposits from the
public 221,051 196,615 214,755
Deposits from banks 1,637 3,586 2,508
Bonds and subordinated
capital notes 4,458 4,736 4,479
Capital attributed to the
shareholders of the Bank 13,773 12,355 13,430
--------------------------------- ---------- ---------- -------------
Additional data 31.3.25 31.3.24 31.12.24
-------------------------------- ---------- ---------- -------------
Share price (0.01 NIS) 18,720 15,440 17,940
Dividend per share (0.01 NIS) 227 268 986
--------------------------------- ---------- ---------- -------------
* Reclassified.
(1) Annualized.
(2) Including provision in respect of off-balance sheet credit instruments.
(3) The ratio is computed in respect of the three months ended at the end of the reporting period.
CONSOLIDATED
STATEMENT OF
INCOME
(NIS million)
----------------- ------------- ----------- --------------
For the year
For the three months Ended December
ended March 31 31
----------------- -------------------------- --------------
2025 2024 2024
------------------ ------------- ----------- --------------
(unaudited) (unaudited) (audited)
------------------ ------------- ----------- --------------
Interest Income 2,803 2,576 11,097
Interest Expenses 1,649 1,461 6,357
------------------ ------------- ----------- --------------
Interest Income,
net 1,154 1,115 4,740
Income from credit
losses (11) (2) (16)
------------------ ------------- ----------- --------------
Net Interest
Income after
Income from
credit losses 1,165 1,117 4,756
------------------ ------------- ----------- --------------
Non- Interest
Income
Non-Interest
financing income 88 100 432
Fees 425 365 1,553
Other income 1 1 21
------------------ ------------- ----------- --------------
Total non-
Interest income 514 466 2,006
------------------ ------------- ----------- --------------
Operating and
other expenses
Salaries and
related expenses 453 *447 1,739
Maintenance and
depreciation of
premises
and equipment 84 *82 359
Amortizations and
impairment of
intangible
assets 35 31 134
Other expenses 220 171 745
------------------ ------------- ----------- --------------
Total operating
and other
expenses 792 731 2,977
------------------ ------------- ----------- --------------
Profit before
taxes 887 852 3,785
Provision for
taxes on profit 354 279 1,383
------------------ ------------- ----------- --------------
Profit after taxes 533 573 2,402
The bank's share
in profit of
equity-basis
investee, after
taxes 22 18 74
------------------ ------------- ----------- --------------
Net profit:
Before attribution
to
non--controlling
interests 555 591 2,476
Attributed to
non--controlling
interests (25) (22) (105)
------------------ ------------- ----------- --------------
Attributed to
shareholders of
the Bank 530 569 2,371
NIS
------------- ----------- --------------
Primary profit per
share attributed
to the
shareholders of
the Bank
Net profit per
share of NIS 0.05
par value 5.28 5.67 23.63
Diluted profit per
share attributed
to the
shareholders of
the Bank
Net profit per
share of NIS 0.05
par value 5.28 5.67 23.63
------------------ ------------- ----------- --------------
* Reclassified.
The notes to the financial statements are an integral part thereof.
STATEMENT OF COMPREHENSIVE
INCOME
(NIS million)
------------------------------- ----------- ----------- ------------
For the year
For the three months Ended
ended March 31 December 31
------------------------
2025 2024 2024
(unaudited) (unaudited) (audited)
Net profit before attribution to
non--controlling interests 555 591 2,476
Net profit attributed to
non--controlling interests (25) (22) (105)
-------------------------------- ----------- ----------- ------------
Net profit attributed to the
shareholders of the Bank 530 569 2,371
Other comprehensive income
(loss) before taxes:
Adjustments of available for
sale bonds to fair value, net 38 (44) 31
Adjustments of liabilities in
respect of employee
benefits(1) 26 11 (60)
-------------------------------- ----------- ----------- ------------
Other comprehensive income
(loss) before taxes 64 (33) (29)
Related tax effect (24) 17 9
-------------------------------- ----------- ----------- ------------
Other comprehensive income
(loss) before attribution to
non--controlling interests,
after taxes 40 (16) (20)
Less other comprehensive income
attributed to non--controlling
interests - - 3
-------------------------------- ----------- ----------- ------------
Other comprehensive income
(loss) attributed to the
shareholders of the Bank,
after taxes 40 (16) (23)
-------------------------------- ----------- ----------- ------------
Comprehensive income before
attribution to non--controlling
interests 595 575 2,456
Comprehensive income attributed
to non--controlling interests (25) (22) (108)
-------------------------------- ----------- ----------- ------------
Comprehensive income attributed
to the shareholders of the
Bank 570 553 2,348
-------------------------------- ----------- ----------- ------------
(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)
------------------------------- ----------- ----------- ------------
March 31, December 31,
------------------------------- ------------------------ ------------
2025 2024 2024
------------------------------- ----------- ----------- ------------
(unaudited) (unaudited) (audited)
------------------------------- ----------- ----------- ------------
Assets
Cash and deposits with banks 77,342 76,731 77,175
Securities 35,946 26,375 34,396
Securities which were borrowed 71 2 70
Credit to the public 133,660 116,816 131,050
Provision for Credit losses (1,634) (1,617) (1,634)
-------------------------------- ----------- ----------- ------------
Credit to the public, net 132,026 115,199 129,416
Credit to the government 1,504 965 1,496
Investment in investee company 866 800 842
Premises and equipment 858 867 867
Intangible assets 356 325 363
Assets in respect of derivative
instruments 3,376 3,324 2,565
Other assets(2) 1,403 1,353 1,373
Total assets 253,748 225,941 248,563
-------------------------------- ----------- ----------- ------------
Liabilities and Shareholders'
Equity
Deposits from the public 221,051 196,615 214,755
Deposits from banks 1,637 3,586 2,508
Deposits from the Government 483 710 2,540
Securities lent or sold under
agreements to repurchase 3,813 - 2,304
Bonds and subordinated capital notes 4,458 4,736 4,479 Liabilities in respect of derivative instruments 3,158 3,085 2,729 Other liabilities(1)(3) 4,696 4,257 5,164 Total liabilities 239,296 212,989 234,479 -------------------------------- ----------- ----------- ------------ Capital attributed to the shareholders of the Bank 13,773 12,355 13,430 Non-controlling interests 679 597 654 -------------------------------- ----------- ----------- ------------ Total equity 14,452 12,952 14,084 -------------------------------- ----------- ----------- ------------ Total liabilities and shareholders' equity 253,748 225,941 248,563 -------------------------------- ----------- ----------- ------------
(1) Of which: provision for credit losses in respect of off-balance sheet credit instruments in the amount of NIS 184 million and NIS 170 million and NIS 177 million as of 31.3.25, 31.3.24 and 31.12.24, respectively.
(2) Of which: other assets measured at fair value in the amount of NIS 21 million and NIS 5 million and NIS 1 million as of 31.3.25, 31.3.24 and 31.12.24, respectively.
(3) Of which: other liabilities measured at fair value in the amount of NIS 21 million and NIS 5 million and NIS 11 million as of 31.3.25, 31.3.24 and 31.12.24, respectively.
STATEMENT OF
CHANGES IN
EQUITY
(NIS million)
-------------- ------- ------------ -------- ------------- -------- -------------- ------------ -----------
For the three months ended March 31, 2025 (unaudited)
-------------- ------- ------------ ----------------------------------------------------------------------------
Capital
reserves
Share from benefit Total Accumulated
capital due to capital other Total
and share-based and comprehensive Retained share- Non-
premium payment capital income earnings holders' controlling Total
(1) transactions reserves (loss) (2) equity interests equity
-------------- ------- ------------ -------- ------------- -------- -------------- ------------ -----------
Balance as of
December 31,
2024
(audited) 927 - 927 (178) 12,681 13,430 654 14,084
Net profit for
the period - - - - 530 530 25 555
Dividend - - - - (228) (228) - (228)
Benefit due to
share-based
payment
transactions - 1 1 - - 1 - 1
Other
comprehensive
income, after
tax effect - - - 40 - 40 - 40
--------------- ------- ------------ -------- ------------- -------- -------------- ------------ -----------
Balance as of
March 31,
2025 927 1 928 (138) 12,983 13,773 679 14,452
--------------- ------- ------------ -------- ------------- -------- -------------- ------------ -----------
For the three months ended March 31, 2024 (unaudited)
-------------- ------- ------------ ----------------------------------------------------------------------------
Share
capital Accumulated Total
and other Retained share- Non-
premium comprehensive earnings holders' controlling Total
(1) loss (2) equity interests equity
-------------- ------- ------------ -------- ------------- -------- -------------- ------------ -----------
Balance as of
December 31,
2023
(audited) 927 (155) 11,299 12,071 575 12,646
Net profit for
the period - - 569 569 22 591
Dividend - - (269) (269) - (269)
Other
comprehensive
loss, after
tax effect - (16) - (16) - (16)
------- ------------
Balance as of
March 31,
2024 927 (171) 11,599 12,355 597 12,952
--------------- ------- ------------ -------- ------------- -------- -------------- ------------ -----------
For year ended December 31, 2024 (audited)
-------------- ------- ------------ ----------------------------------------------------------------------------
Share
capital Accumulated
and other Retained Total Non-
premium comprehensive earnings share-holders' controlling Total
(1) loss (2) equity interests equity
-------------- ------- ------------ -------- ------------- -------- -------------- ------------ -----------
Balance as of
December 31,
2023 927 (155) 11,299 12,071 575 12,646
Net profit for
the year - - 2,371 2,371 105 2,476
Dividend - - (989) (989) (29) (1,018)
Other
comprehensive
income (loss),
after tax
effect - (23) - (23) 3 (20)
------- ------------
Balance as of
December 31,
2024 927 (178) 12,681 13,430 654 14,084
--------------- ------- ------------ -------- ------------- -------- -------------- ------------ -----------
(1) Including share premium of NIS 313 million (as from 1992 onwards).
(2) Including an amount of NIS 2,391 million which cannot be distributed as dividend.
Contact:
Dafna Zucker
First International Bank of Israel
zucker.d@fibi.co.i
+972-3-519-6224
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SOURCE First International Bank of Israel
(END) Dow Jones Newswires
May 14, 2025 06:55 ET (10:55 GMT)
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