#Israel #Tel Aviv #First International Bank #Banking

First International Bank of Israel's Q3 2025 Financial Results

The First International Bank of Israel (TASE: FIBI), recognized as one of the principal banking institutions in Israel, released its financial results for the third quarter of 2025, showcasing a combination of solid growth and robust financial health. The results indicate an impressive net income of NIS 581 million for the quarter, despite facing some one-time losses related to CAL. If these losses are disregarded, the adjusted net income rises to NIS 624 million, with an outstanding return on equity (ROE) of 17.4%.

Financial Highlights

In detail, the bank's performance over the initial nine months of the year demonstrated a net income totaling NIS 1.748 billion, reflecting a slight decrease of 2.8% compared to the same period in the previous year, while the ROE was reported at 16.9%. The bank stated the total revenues for this period increased by 6% year-on-year, amounting to NIS 5.337 billion. A remarkable growth was observed in customer assets, which soared by 34.4% year-on-year, totaling NIS 1.074 trillion. Additionally, gross credit extended to the public rose by 11.9% in comparison to the previous year and by 3.4% sequentially.

Deposits increased by 9.4% compared to the previous year and by 3.5% from the previous quarter, contributing to the positive developments in customer asset management. Significantly, the bank's equity attributed to shareholders reached NIS 14.543 billion, an 11.3% rise year-on-year, showcasing its strong financial position.

Moreover, the Tier 1 capital ratio stood at a robust 11.39%, comfortably above the regulatory requirements, facilitating further operational growth. The bank’s non-performing loan (NPL) ratio improved to 0.46%, a positive trend compared to the previous year’s figure of 0.57%, demonstrating effective risk management within its lending operations.

Operating Costs and Tax Provisions

Operating expenses for the first nine months reached NIS 2.383 billion, with an efficiency ratio reported at 44.7%. In terms of tax provisions, there was an upward adjustment to NIS 1.157 billion from NIS 1.033 billion in the previous year, leading to an effective tax rate of 39%. This increase is attributed to prior years’ income adjustments and an elevated special fee imposed on banks. The bank's Board of Directors has cleared plans for an NIS 436 million dividend distribution, comprising 50% of Q3's net income.

Management's Outlook

Eli Cohen, the CEO of the First International Bank, commented, "These results reflect significant resilience and continue to underline our core strategic focus on deposit and customer asset growth. We have seen customer assets surpass NIS 1 trillion, with our premium portfolio remaining stable and healthy."

Cohen also pointed to the broader economic context, noting a prevailing sense of optimism following recent geopolitical resolutions and the return of hostages, alongside optimism regarding stability driven by a previously robust economic foundation. He emphasized the bank's commitment to navigating upcoming challenges while pursuing growth opportunities, particularly in light of potential advancements surrounding the regional Abraham Accords, indicating a cautious yet optimistic perspective as the bank looks toward the future.

Conclusion

As FIBI continues to strengthen its foothold within Israel’s financial landscape, the Q3 results reflect its ongoing commitment to provide high-quality banking services while maintaining stability and growth amid a changing economic environment. Stakeholders remain watchful as the bank prepares to navigate future impacts stemming from both internal and external economic conditions, all while ensuring their robust performance trajectory remains unbroken.