#Israel #Tel Aviv #financial results #First International Bank

First International Bank of Israel Reports Strong Q2 2026 Results

On August 12, 2026, First International Bank of Israel (TASE: FIBI), one of the leading banking institutions in Israel, disclosed its financial results for the second quarter of 2026. The report highlights notable growth and profitability while ensuring a solid financial base.

Key Financial Highlights

For the second quarter of 2026, the bank achieved a net income of NIS 583 million, with a return on equity (ROE) of 16%. Excluding a special tax levy, the ROE elevated to 17.8%. In the first half of 2026, net income reached NIS 1,063 million, translating to a ROE of 14.5%, which could be increased to 16.2% when excluding the special tax levy.

The board approved a dividend distribution amounting to approximately NIS 558 million, which constitutes about 96% of the net income for the quarter. This figure includes nearly 50% of Q2 2026's net income alongside an additional amount sourced from available profits. Notably, as of June 30, 2026, the dividend yield was recorded at 6.1%.

Moreover, credit to the public experienced a remarkable growth of 20.1% compared to the same period last year and saw a 5.9% increase from the end of Q1 2026.

The bank's total client asset portfolio also grew, reaching approximately NIS 1.23 trillion, marking an impressive rise of 20.8% year-on-year and 5.7% from the end of 2026. Shareholders' equity stood at roughly NIS 14.9 billion, which is a 4.5% increase from the previous year. The Common Equity Tier 1 ratio was reported at 10.87%.

Performance Analysis

In comparison to Q1 2026, where net income was at NIS 480 million, Q2's figures indicate a substantial increase of 21.5%. However, when compared to last year's second quarter, there was a slight decline of 8.5% from the NIS 637 million reported in Q2 2025. The improvement in ROE signals the bank's ability to maintain profitability while facing fluctuating market conditions.

Overall, the net income for the first half of the year (H1 2026) was down by 8.9% compared to H1 2025. This decline reflects broader changes in the macroeconomic landscape impacting various sectors, including shifts in the CPI, interest rates, and currency fluctuations. Nonetheless, a considerable growth in financing activities and fee income partly offset these challenges, as fee and commission income rose by 9.1%, totaling NIS 937 million.

Deposits from the public totaled approximately NIS 251.4 billion, up 11.7% year-on-year, and 8.6% since the end of Q1 2026.

Looking Forward

CEO Eli Cohen emphasized the necessity of multidisciplinary expertise for effective financial management, especially in today's dynamic market environment. FIBI's position as a key financial partner for both large corporations and individuals allows it to execute tailored investment strategies that add value for clients.

The bank continues to focus on technological advancements as a pivotal means to boost efficiency. The swift adoption of digital tools, AI, automation, and digital workflows is aimed at enhancing operational efficiency and improving client services.

As a leader in dividend yield within the banking sector, FIBI remains steadfast in actively managing its capital while blending rapid growth with enhanced shareholder value distribution.

In essence, the robust financial results of Q2 2026 exemplify FIBI's commitment to achieving stability and profitability in fluctuating economic conditions, solidifying its reputation as a trusted banking institution in Israel's financial landscape.