Israel’s banking system is closing an unusually strong third quarter, with Bank Leumi and Mizrahi Tefahot—two of the country’s largest financial institutions—reporting a combined net profit exceeding NIS 4 billion.
Leumi delivered a sharp double-digit rise in profitability, while Mizrahi Tefahot strengthened its leadership in credit and mortgages. Both banks also announced significant dividend distributions, reinforcing investor confidence.

Bank Leumi: Profit Soars 18%, Efficiency Leads the Industry

Bank Leumi posted NIS 2.7 billion in net profit for the third quarter, an 18% increase over the same period last year. Return on equity reached 16.3%, and the bank once again recorded the industry’s best efficiency ratio of 27%.

Credit Portfolio: Consistent Expansion

• Total credit grew 1.3% in the quarter and 8.8% since the start of the year.

• Business credit surged 15.7% year-to-date, and mortgage credit rose 5.1%.

• Non-performing loans dropped to 0.41%, underscoring strong credit quality.

Capital and Risk Indicators Strong

• Tier 1 capital adequacy: 12.33%

• Total capital adequacy: 14.87%

• Credit loss expenses fell sharply to 0.03%, versus 0.28% a year ago.

Leumi also continued its customer-relief measures related to the war, at a total cost of NIS 172 million, including benefits for reservists, interest reductions and donations to civilian and defense organizations.

The bank announced a NIS 2 billion dividend, equal to 75% of quarterly net profit.

Mizrahi Tefahot: Strong Profit, Dominance in Mortgages and Expanding Business Credit

Mizrahi Tefahot posted net profit of NIS 1.48 billion, slightly higher than last year, with an impressive 17.6% return on equity. Public deposits climbed to NIS 421.5 billion (up 9.4%), and credit to the public reached NIS 391.9 billion, a 12.5% annual increase.

Efficiency and Dividend

The bank continues to report one of the sector’s strongest efficiency ratios at 34.2%. It will distribute a dividend of NIS 741.5 million, roughly 50% of profit.

Business Banking Push Accelerates

Business credit rose 23% to NIS 112.5 billion, aligning with the bank’s long-term strategic plan to become a central force in business banking.
Equity climbed to NIS 34 billion, an 11.7% yearly increase.

Mortgage Leadership Strengthens

Mizrahi Tefahot continues to dominate Israel’s mortgage market:

• Mortgage origination in the first three quarters: NIS 30.7 billion

• Q1: NIS 8.9B → Q3: Over NIS 12B

• Market share: 39.3%—one of the highest in recent years

New Social Initiative for Reservists

The bank has launched a special program for reserve servicemen:
A NIS 100,000 interest-free, unlinked loan for first-time homebuyers who served at least 90 days since October 2024.

A Sector Riding High Despite Geopolitical Uncertainty

The strong performance of both banks underscores the resilience of Israel’s financial system despite the continued economic pressures of war. With high profitability, disciplined efficiency and expanding credit activity, Leumi and Mizrahi Tefahot are positioned to remain the sector’s dominant forces heading into 2026.