Bank Leumi Reports Impressive Q2 2025 Financial Performance with Robust Dividend Distribution

Bank Leumi's Strong Financial Performance in Q2 2025

Bank Leumi has reported robust financial results for the second quarter of 2025, showcasing a net income of approximately NIS 2.6 billion (around $774 million), marking a significant 15% increase from the same period last year. The financial institution's return on equity (ROE) stands at an impressive 16.2%, reflecting its commitment to profitability and shareholder value.

Key highlights from the report include a noteworthy efficiency ratio of 26.9%, which positions the bank among the leaders in the global financial sector. This ratio indicates how effectively the bank is managing its operating costs in relation to its net income. Additionally, the bank is set to distribute a generous dividend that amounts to 50% of its net income for the quarter, totalizing NIS 1.3 billion (approximately $386 million). This distribution includes a cash dividend of about NIS 1 billion ($297 million) and a share buyback program.

Strong Loan Portfolio Growth

In terms of growth, Bank Leumi has demonstrated responsible expansion in its loan portfolio, with a notable 5.7% increase in the corporate, commercial, and mortgage segments during the second quarter. The overall credit portfolio has expanded by 7.4% year-to-date, showcasing substantial growth in the corporate segment by 12.5%. The mortgage and commercial segments also saw positive growth rates of 3.3% and 2.0%, respectively.

Remarkably, the quality of the loan portfolio remains high, with the non-performing loans (NPL) ratio at just 0.43%, one of the lowest in the banking industry. This indicates effective risk management and a strong ability to monitor loan performance.

Positive Deposit Trends and Capital Adequacy

Deposits by the public also experienced a substantial rise, increasing by 7.7% in Q2 2025. The bank's commitment to maintaining a solid capital base and liquidity is evident with a common equity tier 1 capital ratio of 12.3% and a total capital ratio of 14.9%. The liquidity coverage ratio stands at a healthy 130%, indicating that the bank is well-prepared to meet its short-term obligations.

Social Responsibility Initiatives

In addition to achieving impressive financial results, Bank Leumi has also focused on social responsibility, particularly in the context of various challenges facing the public. The bank has implemented multiple programs aimed at supporting customers affected by recent conflicts, including comprehensive relief for citizens, IDF soldiers, and businesses affected by adverse conditions. These initiatives include deferred payments on loans and mortgages without interest penalties, as well as financial assistance to those whose properties have been damaged.

The bank has estimated the total cost of its social initiatives and donations during Q2 2025 to be around NIS 85 million ($25 million), further highlighting its commitment to the community.

Conclusion

Bank Leumi's Q2 2025 results not only showcase remarkable financial performance but also reflect a solid commitment to social responsibility and community support. With its strong capital ratios and dedication to sharehold earnings, Bank Leumi continues to position itself as a leader in the banking industry.