International Bank Reports Q1 2025 Results: Net Profit Down 6.8% Amid Higher Tax Burden

The International Bank became the first Israeli bank to publish its financial results for the first quarter of 2025, reporting a net profit of NIS 530 million, marking a 6.8% decline compared to NIS 569 million in the same quarter last year.

According to the bank, the drop in net profit is primarily attributed to an increased tax payment of NIS 49 million, stemming from a higher special tax rate now applicable to banking institutions. Despite the decline, the bank posted a return on equity (ROE) of 15.7% on an annual basis.

The financial statements also show that net credit to the public increased by 14.6% year-over-year and by 2% compared to the previous quarter, reflecting continued lending momentum and economic activity in early 2025.

A notable improvement was recorded in credit quality. The proportion of non-accrual debts or loans in arrears over 90 days declined to 0.46% of total public credit, compared to 0.6% in the first quarter of 2024.

The results set the tone for the broader banking sector's performance amid evolving regulatory and tax environments, with additional banks expected to report in the coming weeks.