In this quarter, FIBI conducted its operations against the backdrop of the ongoing war and a complex, dynamic macroeconomic environment. In addition to the conflict, the interest rate environment, dollar exchange rate volatility, and developments in global markets - all presented significant challenges for the economy and the banking system, which continued to demonstrate exceptional resilience even under security threats.

 

Our results for the first quarter of 2026 reflect the Bank's financial strength, the quality of our credit portfolio, and our deep commitment to our customers. They attest to a consistent strategy, rigorous risk management, and continued rapid growth across all business lines. Throughout the period, we maintained uninterrupted, professional service to our retail and business customers, and the growth in activity reflects our customers' confidence in the Bank.

 

In addition to the financial results, this quarter marks the beginning of a new chapter for the Bank: We are proud to announce the establishment of FIBI's AI Division—a strategic move that will position us at the forefront of banking innovation in Israel. The Division will spearhead the integration of artificial intelligence across all the Bank's processes, from enhancing customer experience to streamlining internal operations and facilitating data-driven decision-making.

 

We view AI not merely as a technological tool, but as an engine driving growth and cultural transformation that will shape our path forward in the years ahead.

 

I wish to sincerely thank the Bank's employees, who continued to demonstrate outstanding professionalism and dedication this year, and our customers for their continued trust.

 

Financial Highlights

 

• Net income of NIS 480 million in the first quarter of 2026

• Return on equity: 13. 2%

• Return on equity, excluding excess capital above the Board's target and the special tax levy, stands at 16.7%

• Credit to the public grew by 16.0% compared with the prior-year period and by 4.8% compared with year-end 2025

• Total customer asset portfolio grew by approximately 25.1% compared with the prior-year period, and by approximately 1.0% compared with year-end 2025, reaching approximately NIS 1.17 trillion

• Shareholders' equity totaled approximately NIS 14.5 billion, an increase of 5.0% compared with the prior-year period

 

• Common Equity Tier 1 ratio: 10.82%

• The FIBI Board of Directors approved a dividend distribution of approximately NIS 240 million, approximately 50% of net income for the first quarter of 2026. Dividend yield as of March 31, 2026 stood at 6.1%

 

Q1 2026 results summary

 

The FIBI Group's net income in the first quarter of 2026 totaled NIS 480 million, compared with NIS 530 million in the prior-year period. Return on equity reached 13. 2% in the first quarter of 2026. Excluding the excess Common Equity Tier 1 ratio above the Board's target and the special tax levy applicable to the Bank in the first quarter of 2026, return on equity stands at 16.7%.

 

Credit to the public totaled approximately NIS 155 billion, an increase of 16.0% compared with the prior-year period and 4.8% compared with year-end 2025. Public deposits totaled approximately NIS 231.6 billion, an increase of 4.8% compared with the prior-year period. The total customer asset portfolio grew by approximately 25% compared with the prior-year period, reaching approximately NIS 1.17 trillion.

 

Total revenues in the first quarter of 2026 amounted to NIS 1.65 billion, a decrease of 1.2% (before credit losses) compared with the prior-year period. The decrease is driven primarily by macroeconomic shifts in the CPI, interest rates, and exchange rates, and is offset by higher operating volumes.

 

Fee and commission income grew by 9.2% compared with the prior-year period, totaling NIS 464 million.

 

The Bank maintains a high-quality credit portfolio. no credit loss expenses were recorded this quarter. The NPL ratio (non-accrual loans or loans that are 90 days or more past due, as a percentage of credit to the public) stands at 0.42%, compared with 0.46% at year-end 2025.

 

Shareholders' equity totaled approximately NIS 14.5 billion, an increase of 5.0% compared with the prior-year period and a decrease of 1.0% compared with year-end 2025. The reduction in excess capital was achieved through increased dividend distributions and growth in credit to the public and operations. The Common Equity Tier 1 ratio is 10.82%, which exceeds the regulatory capital requirement by 1.58% and supports continued growth in the Group's operations and distribution of surplus capital as dividends.

 

Operating and other expenses totaled NIS 814 million, an increase of NIS 22 million (2.8%) compared with the prior-year period. This increase is driven primarily by a NIS 35 million increase in other expenses, which is mainly attributable to commission expenses associated with expanded capital markets operations (offset by a corresponding increase in revenues) and customer benefits extended under the banking system's voluntary relief framework. The efficiency ratio for the first quarter of 2026 stands at 49.4%.

 

 

The Board of Directors approved a dividend distribution to shareholders totaling approximately NIS 240 million, approximately 50% of the net income for the first quarter of 2026. The dividend yield as of 31.3.2026 stood at 6.1%.