Reports record profits, with the financial statements reflecting accelerated growth and high profitability, whilst maintaining financial stability
TEL AVIV, Israel , Aug. 11, 2025 /PRNewswire/ -- First International Bank of Israel (TASE: FIBI) one of Israel's major banking groups, today announced its results for the second quarter of the year.
Financial Highlights
-- Net income of NIS 637 million in the second quarter of 2025, an increase
of 4.6% year-over-year, and a return on equity of -18.3%
-- Pre-tax income amounted to NIS 1,951 million in the first half of the
year, an increase of 6.6% year-over-year
-- Net income in the first half of the year amounted to NIS 1,167 million,
compared to -1,178 NIS million in the same period of last year, a
decrease of 0.9%/
-- Credit to the public, net, in the first half of the year increased by 12%
year-over-year and by 2.3% in the second quarter of the year
-- Deposits by the public, net, in the first half of the year increased by
10.3% year-over-year and by 1.8% in the second quarter of the year
-- Customers' assets in the first half of the year grew by 34.4%
year-over-year and by 8.3% in the second quarter of the year, reaching
NIS 1,015 billion.
-- Shareholders' equity in the Bank amounted to NIS 14,258 million, an
increase of 13% year-over-year. The tier 1 capital ratio stands at11.54%
-- The Bank's Board of Directors declared a dividend of NIS 319 million,
representing 50% of the net income for the second quarter of the year
Second Quarter and First Half 2025 Results Summary
-- The First International Bank Group's net income amounted to NIS 637
million in the second quarter of 2025, an increase of 4.6 % compared to
the same quarter last year. The return on equity reached 18.3%.
-- Pre-tax income amounted to NIS 1,951 million in the first six months of
the year, an increase of 6.6% compared to the first half of the previous
year. Net income amounted to NIS 1,167million in the first half of the
year. The return on equity reached 17.1%.
-- Credit to the public, net, amounted to NIS 135 billion, an increase of
12% compared to the end of the second quarter of last year, an increase
of 4.4% compared to the end of 2024, and an increase of 2.3% in the
second quarter of the year.
-- Deposits by the public amounted to approximately NIS 225 billion, an
increase of 10.3% compared to the end of the second quarter of last year,
an increase of 4.8% compared to the end of 2024 and an increase of 1.8%
in the second quarter of the year.
-- Customers' assets portfolio increased by 34.4% compared to the same
period last year, by 21% compared to the end of 2024, and by 8.3% in the
second quarter of the year and amounted to NIS 1,015 billion.
-- Shareholders' equity in the Bank increased to NIS 14.26 billion, an
increase of 13% compared to the same period last year. The tier 1 capital
ratio stood at 11.54% - approximately 2.3% percentage points above the
regulatory requirement, supporting continued growth in the Group's
activities.
-- Net income from credit losses in the first half of 2025 amounted to NIS
27 million, representing 0.04% of the average balance of the credit to
the public.
-- The NPL ratio (non-performing loans as a percentage of total credit to
the public, defined as loans that are non-accrual or more than 90 days
past due) reached 0.46%, compared to 0.59% in the same period last year.
-- Operating and other expenses amounted to NIS 1,585 million in the first
half of 2025. The operating efficiency ratio was 45.2% in the first half
of 2025 and 43.1% in the second quarter of 2025.
-- The Bank's Board of Directors approved the distribution of a cash
dividend in the amount of NIS 319 million to the shareholders,
representing 50% of the net income in the second quarter. The Bank's
Board of Directors will continue to review the Bank's dividend
distribution policy in light of developments and the impact on the
economy and on the Bank.
Management Comment
Eli Cohen, First International Bank's CEO commented: "The results for the second quarter of 2025 demonstrate record profits for the First International Bank. The profit was driven by annual growth of more than 10% in credit and deposits, which are the Bank's core fields of activity, among other factors. The capital markets, a segment in which we are leading players, stood out in particular, with the customers' portfolio assets increasing by 34.4% compared to the same period last year and crossing the one trillion shekel mark for the first time.
As part of the implementation of our dividend policy, we have resumed distributions at a rate of 50% of net income for the second quarter. This policy is reviewed on an ongoing basis. The Bank's high capital ratios and the other financial indicators demonstrate our financial strength and position us for continued accelerated growth.
I would like to thank the Bank's employees, who show their loyalty and their commitment even during conflict on both the frontlines and also on the home front, as they continue to provide essential and high-quality service to our customers. I pray for the swift and safe return of all of our soldiers and all the hostages."
CONDENSED PRINCIPAL FINANCIAL INFORMATION AND PRINCIPAL EXECUTION
INDICES
Principal execution indices
--------------------------------------------------------------------
For
the year
For the three ended
months ended June For the six months December
30, ended June 30, 31,
------------- ------------------ ------------------- -----------
2025 2024 2025 2024 2024
------------- -------- -------- -------- --------- -----------
in %
------------- -------- -------- -------- --------- -----------
Return on
equity
attributed to
shareholders
of the
Bank(1) 18.3 19.6 17.1 19.2 19.0
Return on
average
assets(1) 0.99 1.06 0.91 1.05 1.02
Ratio of total
income to
average
assets(1) 2.9 2.9 2.7 2.9 2.9
Ratio of
interest
income, net
to average
assets (1) 2.0 2.1 1.9 2.1 2.0
Ratio of fees
to average
assets (1) 0.7 0.6 0.7 0.6 0.7
Efficiency
ratio 43.1 44.7 45.2 45.4 44.1
-------------- -------- -------- -------- --------- -----------
As of June 30, As of December 31,
------------------------------- ---------------- ------------------
2025 2024 2024
------------------------------- ------- ------- ------------------
in %
------------------------------- ------- ------- ------------------
Ratio of equity capital tier 1 11.54 11.34 11.31
Leverage ratio 5.26 5.20 5.18
Liquidity coverage ratio (3) 134 172 165
Net stable funding ratio 125 149 140
-------------------------------- ------- ------- ------------------
Credit quality indices
--------------------------------------------------------------------
For the
year
ended
For the three months For the six months December
ended June 30, ended June 30, 31,
------------- -------------------- -------------------- --------
2025 2024 2025 2024 2024
------------- --------- --------- --------- --------- --------
in %
------------- --------- --------- --------- --------- --------
Ratio of
provision for
credit losses
to credit to
the public 1.19 1.32 1.19 1.32 1.25
Ratio of total
provision for
credit losses
(2) to credit
to the
public 1.33 1.44 1.33 1.44 1.38
Ratio of
non-accruing
debts or in
arrears of 90
days or more
to credit to
the public 0.46 0.59 0.46 0.59 0.53
Ratio of
provision for
credit losses
to total
non-accruing
credit to the
public 271.5 230.4 271.5 230.4 244.6
Ratio of net
write-offs to
average total
credit to the
public (1) (0.03) (0.15) (0.04) (0.08) (0.04)
Ratio of
income for
credit losses
to average
total credit
to the public
(1) (0.05) (0.24) (0.04) (0.12) (0.01)
-------------- --------- --------- --------- --------- --------
Principal data from the statement of income
----------------------------------------------------------------------
For the three months For the six months
ended June 30, ended June 30,
----------------------- ---------------------- --------------------
2025 2024 2025 2024
----------------------- ---------- ---------- ------ ------------
NIS million
----------------------- ---------- ---------- ------ ------------
Net profit attributed to
shareholders of the
Bank 637 609 1,167 1,178
Interest Income, net 1,290 1,221 2,444 2,336
Income from credit
losses (16) (71) (27) (73)
Total non-Interest
income 551 418 1,065 884
Of which: Fees 434 362 859 727
Total operating and
other expenses 793 732 1,585 1,463
Of which: Salaries
and related expenses 449 *435 902 *882
Primary and diluted net
profit per share of NIS
0.05 par value (NIS) 6.35 6.07 11.63 11.74
------------------------ ---------- ---------- ------ ------------
Principal data from the balance sheet
------------------------------------------------------------------------
30.6.25 30.6.24 31.12.24
--------------------------------------- -------- ------- -----------
NIS million
--------------------------------------- -------- ------- -----------
Total assets 262,507 232,809 248,563
of which: Cash and deposits with banks 79,142 77,663 77,175
Securities 37,432 27,237 34,396
Credit to the public, net 135,092 120,436 129,416
Total liabilities 247,537 219,604 234,479
of which: Deposits from the public 225,124 204,069 214,755
Deposits from banks 2,141 2,735 2,508
Bonds and subordinated
capital notes 4,517 4,689 4,479
Capital attributed to the shareholders
of the Bank 14,258 12,615 13,430
---------------------------------------- -------- ------- -----------
Additional data
------------------------------------------------------------------------
30.6.25 30.6.24 31.12.24
--------------------------------------- -------- ------- -----------
(0.01 NIS)
--------------------------------------- -------- ------- -----------
Share price 24,370 14,410 17,940
Dividend per share 439 495 986
---------------------------------------- -------- ------- -----------
* 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 For the six months Ended
ended June 30 ended June 30 December 31
----------------- ------------------------ ------------------------ ------------
2025 2024 2025 2024 2024
----------------- ----------- ----------- ----------- ----------- ------------
(unaudited) (unaudited) (unaudited) (unaudited) (audited)
----------------- ----------- ----------- ----------- ----------- ------------
Interest Income 3,019 2,879 5,822 5,455 11,097
Interest Expenses 1,729 1,658 3,378 3,119 6,357
------------------ ----------- ----------- ----------- ----------- ------------
Interest Income,
net 1,290 1,221 2,444 2,336 4,740
Income from credit
losses (16) (71) (27) (73) (16)
------------------ ----------- ----------- ----------- ----------- ------------
Net Interest
Income after
expenses from
credit losses 1,306 1,292 2,471 2,409 4,756
------------------ ----------- ----------- ----------- ----------- ------------
Non- Interest
Income
Non-Interest
Financing income 117 47 205 147 432
Fees 434 362 859 727 1,553
Other income - 9 1 10 21
------------------ ----------- ----------- ----------- ----------- ------------
Total non-
Interest income 551 418 1,065 884 2,006
------------------ ----------- ----------- ----------- ----------- ------------
Operating and
other expenses
Salaries and
related expenses 449 *435 902 *882 1,739
Maintenance and
depreciation of
premises
and equipment 82 *81 166 *163 359
Amortizations and
impairment of
intangible
assets 36 32 71 63 134
Other expenses 226 184 446 355 745
------------------ ----------- ----------- ----------- ----------- ------------
Total operating
and other
expenses 793 732 1,585 1,463 2,977
------------------ ----------- ----------- ----------- ----------- ------------
Profit before
taxes 1,064 978 1,951 1,830 3,785
Provision for
taxes on profit 416 364 770 643 1,383
------------------ ----------- ----------- ----------- ----------- ------------
Profit after taxes 648 614 1,181 1,187 2,402
The bank's share
in profit of
equity-basis
investee, after
taxes 16 22 38 40 74
------------------ ----------- ----------- ----------- ----------- ------------
Net profit:
Before attribution
to
non--controlling
interests 664 636 1,219 1,227 2,476
Attributed to
non--controlling
interests (27) (27) (52) (49) (105)
------------------ ----------- ----------- ----------- ----------- ------------
Attributed to
shareholders of
the Bank 637 609 1,167 1,178 2,371
NIS
----------------------------------------------------------------
Primary profit
per share
attributed to the
shareholders of
the Bank
Net profit per
share of NIS 0.05
par value 6.35 6.07 11.63 11.74 23.63
Diluted profit
per share
attributed to the
shareholders of
the Bank
Net profit per
share of NIS 0.05
par value 6.35 6.07 11.63 11.74 23.63
------------------ ----------- ----------- ----------- ----------- ------------
* Reclassified.
STATEMENT OF COMPREHENSIVE INCOME
(NIS million)
-------------------------------------------------------------------------------------
For the year
For the three months For the six months Ended
ended June 30 ended June 30 December 31
------------------------ ------------------------
2025 2024 2025 2024 2024
(unaudited) (unaudited) (unaudited) (unaudited) (audited)
Net profit before
attribution to
non--controlling
interests 664 636 1,219 1,227 2,476
Net profit
attributed to
non--controlling
interests (27) (27) (52) (49) (105)
------------------ ----------- ----------- ----------- ----------- -------------
Net profit
attributed to the
shareholders of
the Bank 637 609 1,167 1,178 2,371
Other
comprehensive
income (loss)
before taxes:
Adjustments of
available for
sale bonds to
fair value, net 126 (200) 164 (244) 31
Adjustments of
liabilities in
respect of
employee
benefits(1) (17) 1 9 12 (60)
------------------ ----------- ----------- ----------- ----------- -------------
Other
comprehensive
income (loss)
before taxes 109 (199) 173 (232) (29)
Related tax effect (43) 73 (67) 90 9
------------------ ----------- ----------- ----------- ----------- -------------
Other
comprehensive
income (loss)
before
attribution to
non--controlling
interests, after
taxes 66 (126) 106 (142) (20)
Less other
comprehensive
income (loss)
attributed to
non--controlling
interests 6 (5) 6 (5) 3
------------------ ----------- ----------- ----------- ----------- -------------
Other
comprehensive
income (loss)
attributed to the
shareholders of
the Bank,
after taxes 60 (121) 100 (137) (23)
------------------ ----------- ----------- ----------- ----------- -------------
Comprehensive
income before
attribution to
non--controlling
interests 730 510 1,325 1,085 2,456
Comprehensive
income attributed
to
non--controlling
interests (33) (22) (58) (44) (108)
------------------ ----------- ----------- ----------- ----------- -------------
Comprehensive
income attributed
to the
shareholders of
the Bank 697 488 1,267 1,041 2,348
------------------ ----------- ----------- ----------- ----------- -------------
(1) Mostly reflects adjustments in respect of actuarial assessments as of the end of
the period regarding defined benefits pension plans and deduction of amounts recorded
in the past in other comprehensive income.
CONSOLIDATED BALANCE SHEET
(NIS million)
------------------------------------------------------------------------
June 30, December 31,
------------------------------- ------------------------ ------------
2025 2024 2024
------------------------------- ----------- ----------- ------------
(unaudited) (unaudited) (audited)
------------------------------- ----------- ----------- ------------
Assets
Cash and deposits with banks 79,142 77,663 77,175
Securities 37,432 27,237 34,396
Securities borrowed 275 30 70
Credit to the public 136,724 122,044 131,050
Provision for Credit losses (1,632) (1,608) (1,634)
-------------------------------- ----------- ----------- ------------
Credit to the public, net 135,092 120,436 129,416
Credit to the government 1,396 1,421 1,496
Investment in investee company 884 825 842
Buildings and equipment 855 859 867
Intangible assets 355 348 363
Assets in respect of derivative
instruments 5,729 2,670 2,565
Other assets(2) 1,347 1,320 1,373
Total assets 262,507 232,809 248,563
-------------------------------- ----------- ----------- ------------
Liabilities and Capital
Deposits from the public 225,124 204,069 214,755
Deposits from banks 2,141 2,735 2,508
Deposits from the Government 1,020 719 2,540
Securities lent or sold under
agreements to repurchase 4,180 744 2,304
Bonds and subordinated
capital notes 4,517 4,689 4,479
Liabilities in respect of
derivative instruments 6,176 2,388 2,729
Other liabilities(1)(3) 4,379 4,260 5,164
Total liabilities 247,537 219,604 234,479
-------------------------------- ----------- ----------- ------------
Shareholders' equity 14,258 12,615 13,430
Non-controlling interests 712 590 654
-------------------------------- ----------- ----------- ------------
Total capital 14,970 13,205 14,084
-------------------------------- ----------- ----------- ------------
Total liabilities and capital 262,507 232,809 248,563
-------------------------------- ----------- ----------- ------------
(1) Of which: provision for credit losses in respect of off-balance
sheet credit instruments in the amount of NIS 180 million and NIS 152
million and NIS 177 million at 30.6.25, 30.6.24 and 31.12.24,
respectively.
(2) Of which: other assets measured at fair value in the amount of NIS
21 million and NIS 3 million and NIS 1 million at 30.6.25, 30.6.24 and
31.12.24, respectively.
(3) Of which: other liabilities measured at fair value in the amount
of NIS 21 million and NIS 28 million and NIS 1 million at 30.6.25,
30.6.24 and 31.12.24, respectively.
STATEMENT OF CHANGES IN EQUITY
(NIS million)
--------------------------------------------------------------------------------------------------------
For the three months ended June 30, 2025 (unaudited)
-------------- ---------------------------------------------------------------------------------------
Capital
reserves
Share from benefit Total Accumulated
capital due to capital other
and share-based and comprehensive Retained Non-
premium payment capital income earnings controlling Total
(1) transactions reserves (loss) (2) Total interests capital
-------------- ------- ------------ -------- ------------- -------- ------ ----------- --------
Balance as of
March 31,
2025 927 1 928 (138) 12,983 13,773 679 14,452
Net profit for
the period - - - - 637 637 27 664
Dividend - - - - (212) (212) - (212)
Other
comprehensive
income, after
tax effect - - - 60 - 60 6 66
--------------- ------- ------------ -------- ------------- -------- ------ ----------- --------
Balance as at
June 30, 2025 927 1 928 (78) 13,408 14,258 712 14,970
--------------- ------- ------------ -------- ------------- -------- ------ ----------- --------
For the three months ended June 30, 2024 (unaudited)
--------------- ------------------------------------------------------------------
Share
capital Accumulated
and other Retained Non-
premium comprehensive earnings controlling Total
(1) loss (2) Total interests capital
-------------- ------- ------------- -------- ------ ----------- -----------
Balance as of
March 31,
2024 927 (171) 11,599 12,355 597 12,952
Net profit for
the period - - 609 609 27 636
Dividend - - (228) (228) (29) (257)
Other
comprehensive
loss, after
tax effect - (121) - (121) (5) (126)
Balance as at
June 30, 2024 927 (292) 11,980 12,615 590 13,205
--------------- ------- ------------- -------- ------ ----------- -----------
For the six months ended June 30, 2025 (unaudited)
--------------- ----------------------------------------------------------------------------------------------
Capital
reserves
from benefit Total Accumulated
due to capital other
Share share-based and comprehensive Retained Non-
capital and payment capital income earnings controlling Total
premium (1) transactions reserves (loss) (2) Total interests capital
-------------- ----------- ------------ -------- ------------- -------- ------ ----------- -----------
Balance as of
December 31,
2024
(audited) 927 - 927 (178) 12,681 13,430 654 14,084
Net profit for
the period - - - - 1,167 1,167 52 1,219
Dividend - - - - (440) (440) - (440)
Benefit due to
share-based
payment
transactions - 1 1 - - 1 - 1
Other
comprehensive
income, after
tax effect - - - 100 - 100 6 106
--------------- ----------- ------------ -------- ------------- -------- ------ ----------- -----------
Balance as at
June 30, 2025 927 1 928 (78) 13,408 14,258 712 14,970
--------------- ----------- ------------ -------- ------------- -------- ------ ----------- -----------
For the six months ended June 30, 2024 (unaudited)
--------------- ---------------------------------------------------------------------
Share
capital Accumulated
and other Retained Non-
premium comprehensive earnings controlling Total
(1) loss (2) Total interests capital
-------------- ---------- ------------- ----------- ------ ----------- --------
Balance as at
December 31,
2023
(audited) 927 (155) 11,299 12,071 575 12,646
Net profit for
the period - - 1,178 1,178 49 1,227
Dividend - - (497) (497) (29) (526)
Other
comprehensive
loss, after
tax effect - (137) - (137) (5) (142)
Balance as at
June 30, 2024 927 (292) 11,980 12,615 590 13,205
--------------- ---------- ------------- ----------- ------ ----------- --------
STATEMENT OF CHANGES IN EQUITY (CONT'D)
(NIS million)
--------------------------------------------------------------------------------------
For the year ended December 31, 2024 (audited)
-------------- ---------------------------------------------------------------------
Share Accumulated
capital other Non-
and comprehensive Retained controlling Total
premium(1) loss earnings(2) Total interests capital
-------------- ---------- ------------- ----------- ------ ----------- --------
Balance as at
December 31,
2023 927 (155) 11,299 12,071 575 12,646
Net profit for
the period - - 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 at
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
August 11, 2025 04:27 ET (08:27 GMT)