At the time of writing, the State of Israel is in the midst of Operation Lion’s Roar, as the IDF and US forces are engaged in operations on the Iranian front and elsewhere, while civilians on the home front face missile attacks from Iran and Lebanon.  The Israeli economy has demonstrated resilience and stability against this backdrop and throughout the complex challenges of 2025 as a whole. FIBI and its employees continue to provide professional, uninterrupted service to our customers, and we are offering a range of benefits and accommodations to assist them during this time. 

FIBI’s financial results for 2025 attest to the Group’s resilience and our ability to adapt our business operations to changing market conditions.   The accelerated growth in customer assets and the credit portfolio reflects the public’s deep confidence in the Bank, its stability, and its professionalism. 

We continue to invest in technological innovation and in improving customer experience, while maintaining an uncompromising standard of service and social responsibility toward our communities. This year, the Bank launched a series of digital innovations and customer value propositions, highlighting investment services: the TOP TRADE account-a competitive value proposition for young customers making their first steps in the capital market.

 

I wish to thank the Bank’s employees for their dedication and commitment to our customers through these challenging days and in general. I also wish to express solidarity with our security forces, who continue to demonstrate strength, courage, and professionalism, and I wish us all quiet days ahead.”

 

Financial Highlights

• Net income of NIS 2.26 billion for 2025 . Return on Equity (ROE): 16.2%.

 

• Return on equity, adjusted to exclude Tier 1 capital surplus above the Bank’s target ratio, reached 19.1%

 

• Public credit grew by 12.9% compared to year-end 2024

 

• Customer assets grew by 38.4% compared to year-end 2024, reaching NIS 1,161 billion

 

• Public deposits grew by 11.1% compared to year-end 2024   

 

• Equity attributable to the Bank’s shareholders totaled NIS 14.6 billion, reflecting a 8.8% increase compared to year-end 2024

 

• Tier 1 capital ratio: 11.1%

 

• Net income for the fourth quarter of 2025 totaled NIS 512 million 

           The Bank’s Board of Directors approved approximately NIS 522 million dividend distribution. 

This amount includes a NIS 266 million distribution as part of a potential future framework of distributions  aimed at reducing c NIS 1 billion of capital surplus over the next two years.

 The Bank is also evaluating additional distributions of 25% of net income through share buybacks over the next two years, subject to the adoption of appropriate frameworks.   

 

2025 Results Summary

 

The FIBI Group’s net income for 2025 totaled NIS 2.26 billion, a 4.7% decrease compared to 2024.   Return on equity reached 16.2%.  

Return on equity, adjusted to exclude Tier 1 capital surplus above the Bank’s target ratio, reached 19.1% 

 

Total revenues grew by 2.6% in 2025 compared to 2024, totaling NIS 6.9 billion. Fee income grew by 14.4% compared to 2024, totaling NIS 1.8 billion. In the fourth quarter, fee income grew by 6.3% compared to the same quarter in the prior year. 

    

Public credit totaled NIS 148 billion, a 12.9% increase compared to year-end 2024, and 4.7% compared to the third quarter of the year.

Public deposits totaled NIS 238.50 billion, a 11.1% increase compared to year-end 2024, and 2.4% compared to the third quarter of the year.

The total customer asset portfolio grew by 38.4% compared to year-end 2024 and by 8.1% in the fourth quarter, reaching NIS 1.16 trillion.

 

Equity attributable to the Bank’s shareholders increased to NIS 14.6 billion, a 8.8% increase compared to year-end 2024.  The Tier 1 capital ratio is 11.1%, exceeding the regulatory capital requirement by 1.87% and facilitating the continued growth of the Group’s operations and a distribution of surplus capital as dividends.  

 

High-quality credit portfolio: the credit loss expense rate as a percentage of average public credit stands at 0.01%.  The NPL (non-performing loans) ratio (the rate of non-accrual loans or loans that are 90 days or more past due, as a percentage of public credit) was 0.46%, compared to 0.53% at year-end 2024. 

 

Operating and other expenses totaled NIS 3.19 billion, a 7.2% increase compared to the same period last year, driven primarily by brokerage commissions on capital markets activity, advertising expenses, and customer grants under the Bank of Israel’s voluntary framework.  The efficiency ratio for 2025 stands at 46.1%.

 

Capital Surplus Reduction 

The Board of Directors approved a dividend distribution to shareholders totaling NIS 256 million, representing 50% of net income for the fourth quarter of 2025.  Furthermore, in light of the Bank’s capital surplus, the Board approved an additional NIS 266 million dividend distribution from the Bank's capital surplus. as part of a potential plan for future additional distributions in comparable amounts, to be made in 3 further installments, one every 6 months, up to a total cumulative amount of NIS 1 billion. 

In addition, the Bank is evaluating the possibility of further distributions of 25% of net quarterly income over the next two years through share buyback program, subject to Board approval of these programs. Accordingly, total dividends to be distributed in March 2026 amount to approximately NIS 522 million.  If and to the extent that such share buyback programs are approved, the maximum additional amount to be distributed thereunder with respect to earnings for the fourth quarter of 2025 stands at an additional NIS 128 million.