CEO STATEMENT
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
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
First International Bank of Israel reports financial results for the first quarter of 2025. The results reflect continued growth and strong profitability while maintaining financial stability
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.
Eli Cohen CEO
