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
TEL AVIV, Israel , Aug. 11, 2025 /PRNewswire/ -- First International Bank of Israel (TASE: FIBI) one of Israel's major banking groups, today announced its results for the second quarter of the year.
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
Second Quarter and First Half 2025 Results Summary
- 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.
Management Comment
Eli Cohen, First International Bank's CEO commented: "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."
CONDENSED PRINCIPAL FINANCIAL INFORMATION AND PRINCIPAL EXECUTION INDICES | ||||||||||
Principal execution indices | ||||||||||
For the three months | For the six months | For the year | ||||||||
2025 | 2024 | 2025 | 2024 | 2024 | ||||||
in % | ||||||||||
Return on equity attributed to shareholders of the Bank(1) | 18.3 | 19.6 | 17.1 | 19.2 | 19.0 | |||||
Return on average assets(1) | 0.99 | 1.06 | 0.91 | 1.05 | 1.02 | |||||
Ratio of total income to average assets(1) | 2.9 | 2.9 | 2.7 | 2.9 | 2.9 | |||||
Ratio of interest income, net to average assets (1) | 2.0 | 2.1 | 1.9 | 2.1 | 2.0 | |||||
Ratio of fees to average assets (1) | 0.7 | 0.6 | 0.7 | 0.6 | 0.7 | |||||
Efficiency ratio | 43.1 | 44.7 | 45.2 | 45.4 | 44.1 | |||||
As of June 30, | As of December 31, | |||||
2025 | 2024 | 2024 | ||||
in % | ||||||
Ratio of equity capital tier 1 | 11.54 | 11.34 | 11.31 | |||
Leverage ratio | 5.26 | 5.20 | 5.18 | |||
Liquidity coverage ratio (3) | 134 | 172 | 165 | |||
Net stable funding ratio | 125 | 149 | 140 | |||
Credit quality indices | ||||||||||
For the three months | For the six months | For the year | ||||||||
2025 | 2024 | 2025 | 2024 | 2024 | ||||||
in % | ||||||||||
Ratio of provision for credit losses to credit to the public | 1.19 | 1.32 | 1.19 | 1.32 | 1.25 | |||||
Ratio of total provision for credit losses (2) to credit to the public | 1.33 | 1.44 | 1.33 | 1.44 | 1.38 | |||||
Ratio of non-accruing debts or in arrears of 90 days or more to credit to the public | 0.46 | 0.59 | 0.46 | 0.59 | 0.53 | |||||
Ratio of provision for credit losses to total non-accruing credit to the public | 271.5 | 230.4 | 271.5 | 230.4 | 244.6 | |||||
Ratio of net write-offs to average total credit to the public (1) | (0.03) | (0.15) | (0.04) | (0.08) | (0.04) | |||||
Ratio of income for credit losses to average total credit to the public (1) | (0.05) | (0.24) | (0.04) | (0.12) | (0.01) | |||||
Principal data from the statement of income | ||||||||
For the three months | For the six months | |||||||
2025 | 2024 | 2025 | 2024 | |||||
NIS million | ||||||||
Net profit attributed to shareholders of the Bank | 637 | 609 | 1,167 | 1,178 | ||||
Interest Income, net | 1,290 | 1,221 | 2,444 | 2,336 | ||||
Income from credit losses | (16) | (71) | (27) | (73) | ||||
Total non-Interest income | 551 | 418 | 1,065 | 884 | ||||
Of which: Fees | 434 | 362 | 859 | 727 | ||||
Total operating and other expenses | 793 | 732 | 1,585 | 1,463 | ||||
Of which: Salaries and related expenses | 449 | *435 | 902 | *882 | ||||
Primary and diluted net profit per share of NIS 0.05 par value (NIS) | 6.35 | 6.07 | 11.63 | 11.74 | ||||
Principal data from the balance sheet | ||||||
30.6.25 | 30.6.24 | 31.12.24 | ||||
NIS million | ||||||
Total assets | 262,507 | 232,809 | 248,563 | |||
of which: Cash and deposits with banks | 79,142 | 77,663 | 77,175 | |||
Securities | 37,432 | 27,237 | 34,396 | |||
Credit to the public, net | 135,092 | 120,436 | 129,416 | |||
Total liabilities | 247,537 | 219,604 | 234,479 | |||
of which: Deposits from the public | 225,124 | 204,069 | 214,755 | |||
Deposits from banks | 2,141 | 2,735 | 2,508 | |||
Bonds and subordinated capital notes | 4,517 | 4,689 | 4,479 | |||
Capital attributed to the shareholders of the Bank | 14,258 | 12,615 | 13,430 | |||
Additional data | ||||||
30.6.25 | 30.6.24 | 31.12.24 | ||||
(0.01 NIS) | ||||||
Share price | 24,370 | 14,410 | 17,940 | |||
Dividend per share | 439 | 495 | 986 | |||
* Reclassified. | ||||||
(1) Annualized. | ||||||
(2) Including provision in respect of off-balance sheet credit instruments. | ||||||
(3) The ratio is computed in respect of the three months ended at the end of the reporting period. | ||||||
CONSOLIDATED STATEMENT OF INCOME | ||||||||||
(NIS million) | ||||||||||
For the three months | For the six months | For the year Ended | ||||||||
2025 | 2024 | 2025 | 2024 | 2024 | ||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | (audited) | ||||||
Interest Income | 3,019 | 2,879 | 5,822 | 5,455 | 11,097 | |||||
Interest Expenses | 1,729 | 1,658 | 3,378 | 3,119 | 6,357 | |||||
Interest Income, net | 1,290 | 1,221 | 2,444 | 2,336 | 4,740 | |||||
Income from credit losses | (16) | (71) | (27) | (73) | (16) | |||||
Net Interest Income after expenses from credit losses | 1,306 | 1,292 | 2,471 | 2,409 | 4,756 | |||||
Non- Interest Income | ||||||||||
Non-Interest Financing income | 117 | 47 | 205 | 147 | 432 | |||||
Fees | 434 | 362 | 859 | 727 | 1,553 | |||||
Other income | - | 9 | 1 | 10 | 21 | |||||
Total non- Interest income | 551 | 418 | 1,065 | 884 | 2,006 | |||||
Operating and other expenses | ||||||||||
Salaries and related expenses | 449 | *435 | 902 | *882 | 1,739 | |||||
Maintenance and depreciation of premises and equipment | 82 | *81 | 166 | *163 | 359 | |||||
Amortizations and impairment of intangible assets | 36 | 32 | 71 | 63 | 134 | |||||
Other expenses | 226 | 184 | 446 | 355 | 745 | |||||
Total operating and other expenses | 793 | 732 | 1,585 | 1,463 | 2,977 | |||||
Profit before taxes | 1,064 | 978 | 1,951 | 1,830 | 3,785 | |||||
Provision for taxes on profit | 416 | 364 | 770 | 643 | 1,383 | |||||
Profit after taxes | 648 | 614 | 1,181 | 1,187 | 2,402 | |||||
The bank's share in profit of equity-basis investee, after taxes | 16 | 22 | 38 | 40 | 74 | |||||
Net profit: | ||||||||||
Before attribution to non‑controlling interests | 664 | 636 | 1,219 | 1,227 | 2,476 | |||||
Attributed to non‑controlling interests | (27) | (27) | (52) | (49) | (105) | |||||
Attributed to shareholders of the Bank | 637 | 609 | 1,167 | 1,178 | 2,371 | |||||
NIS | ||||||||||
Primary profit per share attributed to the shareholders | ||||||||||
Net profit per share of NIS 0.05 par value | 6.35 | 6.07 | 11.63 | 11.74 | 23.63 | |||||
Diluted profit per share attributed to the shareholders | ||||||||||
Net profit per share of NIS 0.05 par value | 6.35 | 6.07 | 11.63 | 11.74 | 23.63 | |||||
* Reclassified. | ||||||||||
STATEMENT OF COMPREHENSIVE INCOME | ||||||||||
(NIS million) | ||||||||||
For the three months | For the six months | For the year Ended | ||||||||
2025 | 2024 | 2025 | 2024 | 2024 | ||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | (audited) | ||||||
Net profit before attribution to non‑controlling interests | 664 | 636 | 1,219 | 1,227 | 2,476 | |||||
Net profit attributed to non‑controlling interests | (27) | (27) | (52) | (49) | (105) | |||||
Net profit attributed to the shareholders of the Bank | 637 | 609 | 1,167 | 1,178 | 2,371 | |||||
Other comprehensive income (loss) before taxes: | ||||||||||
Adjustments of available for sale bonds to fair value, net | 126 | (200) | 164 | (244) | 31 | |||||
Adjustments of liabilities in respect of employee benefits(1) | (17) | 1 | 9 | 12 | (60) | |||||
Other comprehensive income (loss) before taxes | 109 | (199) | 173 | (232) | (29) | |||||
Related tax effect | (43) | 73 | (67) | 90 | 9 | |||||
Other comprehensive income (loss) before attribution to non‑controlling interests, after taxes | 66 | (126) | 106 | (142) | (20) | |||||
Less other comprehensive income (loss) attributed to non‑controlling interests | 6 | (5) | 6 | (5) | 3 | |||||
Other comprehensive income (loss) attributed to the shareholders of the Bank, after taxes | 60 | (121) | 100 | (137) | (23) | |||||
Comprehensive income before attribution to non‑controlling interests | 730 | 510 | 1,325 | 1,085 | 2,456 | |||||
Comprehensive income attributed to non‑controlling interests | (33) | (22) | (58) | (44) | (108) | |||||
Comprehensive income attributed to the shareholders of the Bank | 697 | 488 | 1,267 | 1,041 | 2,348 | |||||
(1) Mostly reflects adjustments in respect of actuarial assessments as of the end of the period regarding defined benefits pension plans and deduction of amounts recorded in the past in other comprehensive income. | ||||||||||
CONSOLIDATED BALANCE SHEET | ||||||
(NIS million) | ||||||
June 30, | December 31, | |||||
2025 | 2024 | 2024 | ||||
(unaudited) | (unaudited) | (audited) | ||||
Assets | ||||||
Cash and deposits with banks | 79,142 | 77,663 | 77,175 | |||
Securities | 37,432 | 27,237 | 34,396 | |||
Securities borrowed | 275 | 30 | 70 | |||
Credit to the public | 136,724 | 122,044 | 131,050 | |||
Provision for Credit losses | (1,632) | (1,608) | (1,634) | |||
Credit to the public, net | 135,092 | 120,436 | 129,416 | |||
Credit to the government | 1,396 | 1,421 | 1,496 | |||
Investment in investee company | 884 | 825 | 842 | |||
Buildings and equipment | 855 | 859 | 867 | |||
Intangible assets | 355 | 348 | 363 | |||
Assets in respect of derivative instruments | 5,729 | 2,670 | 2,565 | |||
Other assets(2) | 1,347 | 1,320 | 1,373 | |||
Total assets | 262,507 | 232,809 | 248,563 | |||
Liabilities and Capital | ||||||
Deposits from the public | 225,124 | 204,069 | 214,755 | |||
Deposits from banks | 2,141 | 2,735 | 2,508 | |||
Deposits from the Government | 1,020 | 719 | 2,540 | |||
Securities lent or sold under agreements to repurchase | 4,180 | 744 | 2,304 | |||
Bonds and subordinated capital notes | 4,517 | 4,689 | 4,479 | |||
Liabilities in respect of derivative instruments | 6,176 | 2,388 | 2,729 | |||
Other liabilities(1)(3) | 4,379 | 4,260 | 5,164 | |||
Total liabilities | 247,537 | 219,604 | 234,479 | |||
Shareholders' equity | 14,258 | 12,615 | 13,430 | |||
Non-controlling interests | 712 | 590 | 654 | |||
Total capital | 14,970 | 13,205 | 14,084 | |||
Total liabilities and capital | 262,507 | 232,809 | 248,563 | |||
(1) Of which: provision for credit losses in respect of off-balance sheet credit instruments in the amount of NIS 180 million and NIS 152 million and NIS 177 million at 30.6.25, 30.6.24 and 31.12.24, respectively. | ||||||
(2) Of which: other assets measured at fair value in the amount of NIS 21 million and NIS 3 million and NIS 1 million at 30.6.25, 30.6.24 and 31.12.24, respectively. | ||||||
(3) Of which: other liabilities measured at fair value in the amount of NIS 21 million and NIS 28 million and NIS 1 million at 30.6.25, 30.6.24 and 31.12.24, respectively. | ||||||
STATEMENT OF CHANGES IN EQUITY | ||||||||||||||||
(NIS million) | ||||||||||||||||
For the three months ended June 30, 2025 (unaudited) | ||||||||||||||||
Share | Capital reserves | Total capital | Accumulated | Retained | Total | Non- | Total | |||||||||
Balance as of March 31, 2025 | 927 | 1 | 928 | (138) | 12,983 | 13,773 | 679 | 14,452 | ||||||||
Net profit for the period | - | - | - | - | 637 | 637 | 27 | 664 | ||||||||
Dividend | - | - | - | - | (212) | (212) | - | (212) | ||||||||
Other comprehensive income, after tax effect | - | - | - | 60 | - | 60 | 6 | 66 | ||||||||
Balance as at June 30, 2025 | 927 | 1 | 928 | (78) | 13,408 | 14,258 | 712 | 14,970 | ||||||||
For the three months ended June 30, 2024 (unaudited) | ||||||||||||
Share | Accumulated | Retained | Total | Non- | Total capital | |||||||
Balance as of March 31, 2024 | 927 | (171) | 11,599 | 12,355 | 597 | 12,952 | ||||||
Net profit for the period | - | - | 609 | 609 | 27 | 636 | ||||||
Dividend | - | - | (228) | (228) | (29) | (257) | ||||||
Other comprehensive loss, after tax effect | - | (121) | - | (121) | (5) | (126) | ||||||
Balance as at June 30, 2024 | 927 | (292) | 11,980 | 12,615 | 590 | 13,205 | ||||||
For the six months ended June 30, 2025 (unaudited) | ||||||||||||||||
Share | Capital reserves | Total capital | Accumulated | Retained earnings (2) | Total | Non- | Total capital | |||||||||
Balance as of December 31, 2024 (audited) | 927 | - | 927 | (178) | 12,681 | 13,430 | 654 | 14,084 | ||||||||
Net profit for the period | - | - | - | - | 1,167 | 1,167 | 52 | 1,219 | ||||||||
Dividend | - | - | - | - | (440) | (440) | - | (440) | ||||||||
Benefit due to share-based payment transactions | - | 1 | 1 | - | - | 1 | - | 1 | ||||||||
Other comprehensive income, after tax effect | - | - | - | 100 | - | 100 | 6 | 106 | ||||||||
Balance as at June 30, 2025 | 927 | 1 | 928 | (78) | 13,408 | 14,258 | 712 | 14,970 | ||||||||
For the six months ended June 30, 2024 (unaudited) | ||||||||||||
Share | Accumulated | Retained | Total | Non- | Total | |||||||
Balance as at December 31, 2023 (audited) | 927 | (155) | 11,299 | 12,071 | 575 | 12,646 | ||||||
Net profit for the period | - | - | 1,178 | 1,178 | 49 | 1,227 | ||||||
Dividend | - | - | (497) | (497) | (29) | (526) | ||||||
Other comprehensive loss, after tax effect | - | (137) | - | (137) | (5) | (142) | ||||||
Balance as at June 30, 2024 | 927 | (292) | 11,980 | 12,615 | 590 | 13,205 | ||||||
STATEMENT OF CHANGES IN EQUITY (CONT'D) | ||||||||||||
(NIS million) | ||||||||||||
For the year ended December 31, 2024 (audited) | ||||||||||||
Share | Accumulated | Retained | Total | Non- | Total | |||||||
Balance as at December 31, 2023 | 927 | (155) | 11,299 | 12,071 | 575 | 12,646 | ||||||
Net profit for the period | - | - | 2,371 | 2,371 | 105 | 2,476 | ||||||
Dividend | - | - | (989) | (989) | (29) | (1,018) | ||||||
Other comprehensive income (loss), after tax effect | - | (23) | - | (23) | 3 | (20) | ||||||
Balance as at December 31, 2024 | 927 | (178) | 12,681 | 13,430 | 654 | 14,084 | ||||||
(1) Including share premium of NIS 313 million (as from 1992 onwards). | ||||||||||||
(2) Including an amount of NIS 2,391 million which cannot be distributed as dividend. | ||||||||||||
Contact:
Dafna Zucker
First International Bank of Israel
[email protected]
+972-3-519-6224
SOURCE First International Bank of Israel
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