First International Bank of Israel Reports Financial Results for the First Quarter of 2026
TEL AVIV, Israel, May 18, 2026 /PRNewswire/ -- First International Bank of Israel (TASE: FIBI) one of Israel's major banking groups, today announced its results for the First quarter of 2026. Statements reflect accelerated growth and high profitability while maintaining financial strength.
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%
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%.
Eli Cohen, CEO of First International Bank of Israel: "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."
PRINCIPAL DATA AND INDICES FOR THE
Condensed principal financial information and principal execution indices*
Principal execution indices |
||||||
For the three months |
For the year ended |
|||||
2026 |
2025 |
2025 |
||||
in % |
||||||
Return on equity attributed to shareholders of the Bank(1) |
(2)13.2 |
15.7 |
16.2 |
|||
Return on average assets(1) |
0.69 |
0.84 |
0.86 |
|||
Ratio of total income to average assets(1) |
2.4 |
2.6 |
2.6 |
|||
Ratio of interest income, net to average assets(1) |
1.6 |
1.8 |
1.8 |
|||
Ratio of fees to average assets(1) |
0.7 |
0.7 |
0.7 |
|||
Efficiency ratio |
49.4 |
47.5 |
46.1 |
|||
As of March 31, |
As of December 31, |
|||||
2026 |
2025 |
2025 |
||||
in % |
||||||
Ratio of tier 1 equity capital |
10.82 |
11.31 |
11.10 |
|||
Leverage ratio |
5.12 |
5.22 |
5.04 |
|||
Liquidity coverage ratio (3) |
129 |
146 |
129 |
|||
Net stable funding ratio |
122 |
131 |
127 |
|||
Principal credit quality indices |
||||||
For the three months |
For the year ended |
|||||
2026 |
2025 |
2025 |
||||
in % |
||||||
Ratio of provision for credit losses to credit to the public |
1.03 |
1.22 |
1.11 |
|||
Ratio of total provision for credit losses (2) to credit to the public |
1.18 |
1.36 |
1.25 |
|||
Ratio of non-accruing debts or in arrears of 90 days or more to credit to the public |
0.42 |
0.46 |
0.46 |
|||
Ratio of provision for credit losses to total non-accruing credit to the public |
251.6 |
275.1 |
251.5 |
|||
Ratio of net write-offs to average total credit to the public (1) |
0.07 |
(0.05) |
(0.01) |
|||
Ratio of expenses (income) for credit losses to average total credit to the public (1) |
- |
(0.03) |
0.01 |
|||
Principal data from the statement of income |
||||
For the three months |
||||
2026 |
2025 |
|||
Net profit attributed to shareholders of the Bank |
480 |
530 |
||
Interest Income, net |
1,090 |
1,154 |
||
Expenses (income) from credit losses |
- |
(11) |
||
Total non-Interest income |
558 |
514 |
||
Of which: Fees |
464 |
425 |
||
Total operating and other expenses |
814 |
792 |
||
Of which: Salaries and related expenses |
437 |
453 |
||
Primary net profit per share of NIS 0.05 par value (NIS) |
4.78 |
5.28 |
||
Diluted net profit per share of NIS 0.05 par value (NIS) |
4.78 |
5.28 |
||
Principal data from the balance sheet |
||||||
31.3.26 |
31.3.25 |
31.12.25 |
||||
NIS million |
||||||
Total assets |
272,602 |
253,748 |
277,833 |
|||
of which: Cash and deposits with banks |
70,439 |
77,342 |
83,776 |
|||
Securities |
39,211 |
35,946 |
38,266 |
|||
Credit to the public, net |
153,482 |
132,026 |
146,374 |
|||
Total liabilities |
257,531 |
239,296 |
262,634 |
|||
of which: Deposits from the public |
231,580 |
221,051 |
238,509 |
|||
Deposits from banks |
1,544 |
1,637 |
1,906 |
|||
Bonds and subordinated capital notes |
9,623 |
4,458 |
6,791 |
|||
Capital attributed to the shareholders of the Bank |
14,465 |
13,773 |
14,614 |
|||
Additional data |
||||||
31.3.26 |
31.3.25 |
31.12.25 |
||||
0.01 NIS |
||||||
Share price |
24,230 |
18,720 |
25,050 |
|||
Dividend per share |
510 |
227 |
1,191 |
|||
* The financial statements are prepared in accordance with the Public Reporting Directives and guidelines of the Supervisor of Banks, which primarily adopt accounting principles generally accepted in the United States (U.S. GAAP).
(1) Annualized.
(2) The return on equity attributed to shareholders of the bank, for the period ended March 31, 2026, excluding the excess of ratio of tier 1 equity capital above the goal set by the Board of Directors (9.50%) and excluding the estimated special tax levy applicable to the bank in the first quarter of 2026, amounted to 16.7%.
(3) The ratio is computed in respect of the three months ended at the end of the reporting period.
(4) Including provision in respect of off-balance sheet credit instruments.
CONSOLIDATED STATEMENT OF INCOME
(NIS million)
For the three months |
For the year ended |
|||||
2026 |
2025 |
2025 |
||||
(unaudited) |
(unaudited) |
(audited) |
||||
Interest Income |
2,717 |
2,803 |
11,771 |
|||
Interest Expenses |
1,627 |
1,649 |
6,949 |
|||
Interest Income, net |
1,090 |
1,154 |
4,822 |
|||
Expenses (income) from credit losses |
- |
(11) |
19 |
|||
Net Interest Income after income from credit losses |
1,090 |
1,165 |
4,803 |
|||
Non- Interest Income |
||||||
Non-Interest financing income |
94 |
88 |
312 |
|||
Fees |
464 |
425 |
1,777 |
|||
Other income |
- |
1 |
11 |
|||
Total non- Interest income |
558 |
514 |
2,100 |
|||
Operating and other expenses |
||||||
Salaries and related expenses |
437 |
453 |
1,769 |
|||
Maintenance and depreciation of premises and equipment |
83 |
84 |
338 |
|||
Amortizations and impairment of intangible assets |
39 |
35 |
146 |
|||
Other expenses |
255 |
220 |
937 |
|||
Total operating and other expenses |
814 |
792 |
3,190 |
|||
Profit before taxes |
834 |
887 |
3,713 |
|||
Provision for taxes on profit |
349 |
354 |
1,386 |
|||
Profit after taxes |
485 |
533 |
2,327 |
|||
The bank's share in profit of equity-basis investees, after taxes |
18 |
22 |
35 |
|||
Net profit: |
||||||
Before attribution to non–controlling interests |
503 |
555 |
2,362 |
|||
Attributed to non–controlling interests |
(23) |
(25) |
(102) |
|||
Attributed to shareholders of the Bank |
480 |
530 |
2,260 |
|||
NIS |
||||||
Primary profit per share attributed to the shareholders |
||||||
Net profit per share of NIS 0.05 par value |
4.78 |
5.28 |
22.53 |
|||
Diluted profit per share attributed to the shareholders |
||||||
Net profit per share of NIS 0.05 par value |
4.78 |
5.28 |
22.52 |
|||
STATEMENT OF COMPREHENSIVE INCOME
(NIS million)
For the three months |
For the year Ended |
|||||
2026 |
2025 |
2025 |
||||
(unaudited) |
(unaudited) |
(audited) |
||||
Net profit before attribution to non–controlling interests |
503 |
555 |
2,362 |
|||
Net profit attributed to non–controlling interests |
(23) |
(25) |
(102) |
|||
Net profit attributed to the shareholders of the Bank |
480 |
530 |
2,260 |
|||
Other comprehensive income (loss) before taxes: |
||||||
Adjustments of available for sale bonds to fair value, net |
(234) |
38 |
281 |
|||
Adjustments of liabilities in respect of employee benefits(1) |
37 |
26 |
(69) |
|||
Other comprehensive income (loss) before taxes |
(197) |
64 |
212 |
|||
Related tax effect |
83 |
(24) |
(86) |
|||
Other comprehensive income (loss) before attribution to non–controlling interests, after taxes |
(114) |
40 |
126 |
|||
Less other comprehensive income (loss) attributed to non–controlling interests |
(2) |
- |
10 |
|||
Other comprehensive income (loss) attributed to the shareholders of the Bank, after taxes |
(112) |
40 |
116 |
|||
Comprehensive income before attribution to non–controlling interests |
389 |
595 |
2,488 |
|||
Comprehensive income attributed to non–controlling interests |
(21) |
(25) |
(112) |
|||
Comprehensive income attributed to the shareholders of the Bank |
368 |
570 |
2,376 |
|||
(1) Mostly reflects adjustments in respect of actuarial assessments as of the end of the period regarding defined benefits pension plans, of |
||||||
CONSOLIDATED BALANCE SHEET
(NIS million)
March 31, |
December 31, |
|||||
2026 |
2025 |
2025 |
||||
(unaudited) |
(unaudited) |
(audited) |
||||
Assets |
||||||
Cash and deposits with banks |
70,439 |
77,342 |
83,776 |
|||
Securities |
39,211 |
35,946 |
38,266 |
|||
Securities borrowed or purchased under agreements to repurchase |
21 |
71 |
355 |
|||
Credit to the public |
155,077 |
133,660 |
148,014 |
|||
Provision for Credit losses |
(1,595) |
(1,634) |
(1,640) |
|||
Credit to the public, net |
153,482 |
132,026 |
146,374 |
|||
Credit to the government |
1,481 |
1,504 |
1,607 |
|||
Investments in investee companies |
896 |
866 |
875 |
|||
Premises and equipment |
869 |
858 |
871 |
|||
Intangible assets |
388 |
356 |
404 |
|||
Assets in respect of derivative instruments |
4,207 |
3,376 |
3,934 |
|||
Other assets(2) |
1,608 |
1,403 |
1,371 |
|||
Total assets |
272,602 |
253,748 |
277,833 |
|||
Liabilities and Shareholders' Equity |
||||||
Deposits from the public |
231,580 |
221,051 |
238,509 |
|||
Deposits from banks |
1,544 |
1,637 |
1,906 |
|||
Deposits from the Government |
1,224 |
483 |
2,032 |
|||
Securities lent or sold under agreements to repurchase |
4,422 |
3,813 |
4,107 |
|||
Bonds and subordinated capital notes |
9,623 |
4,458 |
6,791 |
|||
Liabilities in respect of derivative instruments |
4,359 |
3,158 |
4,336 |
|||
Other liabilities(1)(3) |
4,779 |
4,696 |
4,953 |
|||
Total liabilities |
257,531 |
239,296 |
262,634 |
|||
Capital attributed to the shareholders of the Bank |
14,465 |
13,773 |
14,614 |
|||
Non-controlling interests |
606 |
679 |
585 |
|||
Total capital |
15,071 |
14,452 |
15,199 |
|||
Total liabilities and capital |
272,602 |
253,748 |
277,833 |
|||
(1) Of which: provision for credit losses in respect of off-balance sheet credit instruments in the amount of NIS 230 million and NIS 184 million |
||||||
STATEMENT OF CHANGES IN EQUITY
(NIS million)
For the three months ended March 31, 2026 (unaudited) |
||||||||||||||||
Share capital and premium(1) |
Capital reserves from benefit due to share-based payment transactions |
Total capital and capital reserves |
Accumulated other comprehensive income (loss) |
Retained earnings(2) |
Total |
Non- controlling interests |
Total capital |
|||||||||
Balance as of December 31, 2025 (audited) |
927 |
3 |
930 |
(62) |
13,746 |
14,614 |
585 |
15,199 |
||||||||
Net profit for the period |
- |
- |
- |
- |
480 |
480 |
23 |
503 |
||||||||
Dividend |
- |
- |
- |
- |
(512) |
(512) |
- |
(512) |
||||||||
Repurchase of shares |
(9) |
- |
(9) |
- |
- |
(9) |
- |
(9) |
||||||||
Benefit due to share-based payment transactions |
- |
4 |
4 |
- |
- |
4 |
- |
4 |
||||||||
Other comprehensive loss, after tax effect |
- |
- |
- |
(112) |
- |
(112) |
(2) |
(114) |
||||||||
Balance as of March 31, 2026 |
918 |
7 |
925 |
(174) |
13,714 |
14,465 |
606 |
15,071 |
||||||||
For the three months ended March 31, 2025 (unaudited) |
||||||||||||||||
Share capital and premium(1) |
Capital reserves from benefit due to share-based payment transactions |
Total capital and capital reserves |
Accumulated other comprehensive income (loss) |
Retained earnings (2) |
Total |
Non- controlling interests |
Total capital |
|||||||||
Balance as of December 31, 2024 (audited) |
927 |
- |
927 |
(178) |
12,681 |
13,430 |
654 |
14,084 |
||||||||
Net profit for the period |
- |
- |
- |
- |
530 |
530 |
25 |
555 |
||||||||
Dividend |
- |
- |
- |
- |
(228) |
(228) |
- |
(228) |
||||||||
Benefit due to share-based payment transactions |
- |
1 |
1 |
- |
- |
1 |
- |
1 |
||||||||
Other comprehensive income, after tax effect |
- |
- |
- |
40 |
- |
40 |
- |
40 |
||||||||
Balance as of March 31, 2025 |
927 |
1 |
928 |
(138) |
12,983 |
13,773 |
679 |
14,452 |
||||||||
For the year ended December 31, 2025 (audited) |
||||||||||||||||
Share capital and premium(1) |
Capital reserves from benefit due to share-based payment transactions |
Total capital and capital reserves |
Accumulated other comprehensive income (loss) |
Retained earnings(2) |
Total |
Non- controlling interests |
Total capital |
|||||||||
Balance as of December 31, 2024 |
927 |
- |
927 |
(178) |
12,681 |
13,430 |
654 |
14,084 |
||||||||
Net profit for the period |
- |
- |
- |
- |
2,260 |
2,260 |
102 |
2,362 |
||||||||
Dividend |
- |
- |
- |
- |
(1,195) |
(1,195) |
(181) |
(1,376) |
||||||||
Benefit due to share-based payment transactions |
- |
3 |
3 |
- |
- |
3 |
- |
3 |
||||||||
Other comprehensive income, after tax effect |
- |
- |
- |
116 |
- |
116 |
10 |
126 |
||||||||
Balance as of December 31, 2025 |
927 |
3 |
930 |
(62) |
13,746 |
14,614 |
585 |
15,199 |
||||||||
(1) Including share premium of NIS 304 million as from 1992 onwards (as of 31.3.25 and 31.12.25 - NIS 313 million). |
||||||||||||||||
Contact:
Dafna Zucker
First International Bank of Israel
[email protected]
+972-3-519-6224
SOURCE First International Bank of Israel
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