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 three months
ended June 30,
For the six months
ended June 30,
For the year ended
December 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 June 30,
As of December 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 three months
ended June 30,
For the six months
ended June 30,
For the year ended
December 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 30,
For the six months
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 three months
ended June 30
For the six months
ended June 30
For the year Ended
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)
Attributed to shareholders of the Bank
583
637
1,063
1,167
2,260
NIS
Primary profit per share attributed to the shareholders of the Bank
Net profit per share of NIS 0.05 par value
5.82
6.35
10.60
11.63
22.53
Diluted profit per share attributed to the shareholders of the Bank
Net profit per share of NIS 0.05 par value
5.82
6.35
10.60
11.63
22.52
STATEMENT OF COMPREHENSIVE INCOME
(NIS million)
For the three months
ended June 30
For the six months
ended June 30
For the year Ended
December 31
2026
2025
2026
2025
2025
(unaudited)
(unaudited)
(unaudited)
(unaudited)
(audited)
Net profit before attribution to non–controlling interests
610
664
1,113
1,219
2,362
Net profit attributed to non–controlling interests
(27)
(27)
(50)
(52)
(102)
Net profit attributed to the shareholders of the Bank
583
637
1,063
1,167
2,260
Other comprehensive income (loss) before taxes:
Adjustments of available for sale bonds to fair value, net
175
126
(59)
164
281
Adjustments of liabilities in respect of employee benefits(1)
(19)
(17)
18
9
(69)
Other comprehensive income (loss) before taxes
156
109
(41)
173
212
Related tax effect
(65)
(43)
18
(67)
(86)
Other comprehensive income (loss) before attribution to non–controlling
interests, after taxes
91
66
(23)
106
126
Less other comprehensive income attributed to non–controlling interests
2
6
–
6
10
Other comprehensive income (loss) attributed to the shareholders of the
Bank, after taxes
89
60
(23)
100
116
Comprehensive income before attribution to non–controlling interests
701
730
1,090
1,325
2,488
Comprehensive income attributed to non–controlling interests
(29)
(33)
(50)
(58)
(112)
Comprehensive income attributed to the shareholders of the Bank
672
697
1,040
1,267
2,376
(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,
2026
2025
2025
(unaudited)
(unaudited)
(audited)
Assets
Cash and deposits with banks
83,533
79,142
83,776
Securities
38,465
37,432
38,266
Securities borrowed or purchased under agreements to repurchase
254
275
355
Credit to the public
164,181
136,724
148,014
Provision for Credit losses
(1,580)
(1,632)
(1,640)
Credit to the public, net
162,601
135,092
146,374
Credit to the government
905
1,396
1,607
Investments in investee companies
925
884
875
Premises and equipment
863
855
871
Intangible assets
388
355
404
Assets in respect of derivative instruments
3,694
5,729
3,934
Other assets(2)
2,327
1,347
1,371
Total assets
293,955
262,507
277,833
Liabilities and Shareholders’ Equity
Deposits from the public
251,394
225,124
238,509
Deposits from banks
1,373
2,141
1,906
Deposits from the Government
1,491
1,020
2,032
Securities lent or sold under agreements to repurchase
4,703
4,180
4,107
Bonds and subordinated capital notes
11,551
4,517
6,791
Liabilities in respect of derivative instruments
3,815
6,176
4,336
Other liabilities(1)(3)
4,094
4,379
4,953
Total liabilities
278,421
247,537
262,634
Capital attributed to the shareholders of the Bank
14,899
14,258
14,614
Non-controlling interests
635
712
585
Total capital
15,534
14,970
15,199
Total liabilities and capital
293,955
262,507
277,833
(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
transactions
Total capital
and capital
reserves
Accumulated
other
comprehensive
income (loss)
Retained
earnings (2)
Total
Non-
controlling
interests
Total
capital
Balance as of March 31, 2026
918
7
925
(174)
13,714
14,465
606
15,071
Net profit for the period
–
–
–
–
583
583
27
610
Dividend
–
–
–
–
(240)
(240)
–
(240)
Benefit due to share-based payment transactions
–
2
2
–
–
2
–
2
Other comprehensive income, after tax effect
–
–
–
89
–
89
2
91
Balance as of June 30, 2026
918
9
927
(85)
14,057
14,899
635
15,534
For the three months ended June 30, 2025 (unaudited)
Share
capital and
premium (1)
Capital reserves
from benefit due
to share-based
payment
transactions
Total capital
and capital
reserves
Accumulated
other
comprehensive
income (loss)
Retained
earnings (2)
Total
Non-
controlling
interests
Total
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 of June 30, 2025
927
1
928
(78)
13,408
14,258
712
14,970
For the six months ended June 30, 2026 (unaudited)
Share
capital and
premium (1)
Capital reserves
from benefit due
to share-based
payment
transactions
Total capital
and capital
reserves
Accumulated
other
comprehensive
income (loss)
Retained
earnings (2)
Total
Non-
controlling
interests
Total
capital
Balance as of December 31, 2025 (audited)
927
3
930
(62)
13,746
14,614
585
15,199
Net profit for the period
–
–
–
–
1,063
1,063
50
1,113
Dividend
–
–
–
–
(752)
(752)
–
(752)
Repurchase of shares
(9)
–
(9)
–
–
(9)
–
(9)
Benefit due to share-based payment transactions
–
6
6
–
–
6
–
6
Other comprehensive loss, after tax effect
–
–
–
(23)
–
(23)
–
(23)
Balance as of June 30, 2026
918
9
927
(85)
14,057
14,899
635
15,534
For the six months ended June 30, 2025 (unaudited)
Share
capital and
premium(1)
Capital reserves
from benefit due
to share-based
payment
transactions
Total capital
and capital
reserves
Accumulated
other
comprehensive
income (loss)
Retained
earnings(2)
Total
Non-
controlling
interests
Total
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 of June 30, 2025
927
1
928
(78)
13,408
14,258
712
14,970
For the year ended December 31, 2025 (audited)
Share
capital and
premium (1)
Capital reserves
from benefit due
to share-based
payment
transactions
Total capital
and capital
reserves
Accumulated
other
comprehensive
income (loss)
Retained
earnings (2)
Total
Non-
controlling interests
Total
capital
Balance as of December 31, 2024
927
–
927
(178)
12,681
13,430
654
14,084
Net profit for the period
–
–
–
–
2,260
2,260
102
2,362
Dividend
–
–
–
–
(1,195)
(1,195)
(181)
(1,376)
Benefit due to share-based payment transactions
–
3
3
–
–
3
–
3
Other comprehensive income, after tax effect
–
–
–
116
–
116
10
126
Balance as of December 31, 2025
927
3
930
(62)
13,746
14,614
585
15,199
(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 Zucker
First International Bank of Israel
zucker.d@fibi.co.il
+972-3-519-6224
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SOURCE First International Bank of Israel
