CEO STATEMENT
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.
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
First International Bank of Israel Reports Financial Results for the Second Quarter of 2025 Reports record profits, with the financial statements reflecting accelerated growth and high profitability, whilst maintaining financial stability
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.
Eli Cohen CEO
