#Israel #Tel Aviv #financial results #Net Income #Bank Leumi

Bank Leumi Reports Strong Q3 2025 Results

Bank Leumi has recently released its financial results for the third quarter of 2025, revealing impressive figures that highlight the bank's solid performance amidst a challenging economic landscape. The net income for this quarter reached NIS 2.7 billion (approximately $817 million), marking an 18% increase compared to NIS 2.3 billion ($696 million) in the same period last year. This growth underscores the bank's effective financial strategies and its position within the global financial system.

Financial Highlights

For Q3 2025, Bank Leumi recorded a return on equity (ROE) of 16.3%, up from 15.5% a year earlier, showcasing the bank's efficient management of its resources and its commitment to enhancing shareholder value. The efficiency ratio for this quarter was remarkably low at 27%, down from 31.1% a year prior, positioning Leumi among the most efficient institutions in the global banking sector.

In terms of profit distribution, the bank declared a total dividend of NIS 2 billion ($605 million), which represents 75% of its net income for the quarter. This dividend is primarily comprised of approximately NIS 1.5 billion ($454 million) in cash and a share buyback of up to NIS 500 million ($151 million).

Loan Portfolio Growth

A key focus for Bank Leumi has been the responsible expansion of its loan portfolio. In Q3 2025, the credit portfolio grew by 1.3%, contributing to an impressive total growth of 8.8% since the beginning of the year. This growth is supported by strategic investments in corporate, commercial, and mortgage sectors. Specifically, corporate credit surged by 15.7%, while commercial and mortgage portfolios saw increases of 3.4% and 5.1% respectively.

What is particularly noteworthy is the quality of the loan portfolio; the non-performing loans (NPL) ratio stands at a mere 0.41%, one of the lowest across the banking system. Bank Leumi's commitment to maintaining high-quality loans is evident, as loan loss expenses for this quarter were recorded at just 0.03% of average outstanding loans, a significant reduction from 0.28% the previous year.

Strong Capital and Liquidity Ratios

The bank reported robust capital ratios, indicative of its solid financial foundation. As of September 30, 2025, the common equity tier 1 capital ratio was 12.33%, with a total capital ratio of 14.87%. Furthermore, the liquidity coverage ratio was reported at 128%, ensuring that the bank is well-prepared to meet any short-term obligations.

Community Support Initiatives

During a time of conflict within the region, Bank Leumi has taken proactive measures to support its clientele and the broader community. The bank has implemented a series of initiatives aimed at aiding citizens affected by the ongoing war, which include unique benefits for IDF soldiers and support for families whose properties have been damaged. Financial relief measures encompass a NIS 3,000 reimbursement for reservist soldiers, reductions in interest rates for existing loans, and grants for eligible households.

These efforts underline Bank Leumi's commitment not only to maintaining a stable financial performance but also to being an active and supportive presence in its community. In Q3 2025 alone, the estimated cost of these relief initiatives stood at NIS 172 million ($52 million).

Conclusion

In summary, Bank Leumi's strong Q3 2025 results reflect a well-managed institution that balances profitability with social responsibility. With a focus on growth in strategic loan portfolios and a commitment to supporting the community, Bank Leumi continues to navigate challenges effectively, positioning itself for further success in the future.