#Israel #Tel Aviv #First International Bank #Israel Banking #FIBI

First International Bank of Israel's Financial Highlights for Q2 2025

The First International Bank of Israel, one of Israel's leading banking institutions, announced remarkable financial results for the second quarter of 2025, reflecting strong business performance and financial stability. The figures demonstrated not only substantial growth but also an impressive return on investment, signaling a positive outlook for the bank and its stakeholders.

Key Financial Metrics

In the second quarter, the Bank reported a net income of NIS 637 million, which marks a growth of 4.6% year-on-year. This resilient performance is reflected in a return on equity of 18.3%. Meanwhile, the pre-tax income for the first half of the year totaled NIS 1,951 million, representing an increase of 6.6% compared to the same period last year.

During the first six months, the net income amounted to NIS 1,167 million, in contrast to a net loss of NIS 1,178 million in the same timeframe of the previous year. This notable turnaround underscores the bank's capacity to maneuver through challenging economic conditions.

In terms of lending, the Bank saw net credit to the public increase by 12% year-on-year, contributing to a robust total of NIS 135 billion. Deposits by customers also rose significantly by 10.3%, enhancing the bank's liquidity and financial resilience.

Growth in Customer Assets

One of the most striking achievements in the second quarter was the growth in customer assets, with a remarkable 34.4% increase year-on-year, reaching a monumental NIS 1,015 billion. This is a clear indicator of the bank's competitive positioning in the financial market and speaks to the trust placed in it by its clients.

The total shareholders' equity climbed to NIS 14,258 million, up 13% from the previous year. The Tier 1 capital ratio remains solid at 11.54%, significantly above regulatory requirements. This robust capital position underlines the bank’s sustainable growth trajectory.

Continued Commitment to Shareholders

As part of its commitment to distributing profits to shareholders, the Board of Directors declared a NIS 319 million dividend, equating to 50% of the net income for the second quarter. This move not only reflects sound profit-sharing practices but also reinforces investors' confidence in the bank.

Insights from Management

Eli Cohen, the CEO of First International Bank, commented on these impressive results, stating, 'The findings for Q2 2025 highlight record profits for our institution. Our profit margins have significantly benefited from over 10% annual growth in credits and deposits, which continue to be core activities for us.' The thriving capital markets, where the Bank remains a key player, also contributed to this robust performance.

Cohen further emphasized that the renewed distribution policy reflects the bank's financial strength and a proactive approach to capitalizing on favorable market conditions. The management team continues to evaluate the dividend policy in light of ongoing economic trends.

Conclusion

The second quarter results from the First International Bank of Israel reveal a strong trajectory in profitability and asset growth, cementing the bank’s reputation as a vital financial institution in Israel and contributing to the overall health of the economy. As the bank moves forward, the focus will remain on sustaining growth while delivering value to shareholders amidst the dynamic financial landscape.