First International Bank of Israel Reports Financial Results for the Third Quarter of 2025

Financial Performance - The net income for the first nine months of 2025 totaled NIS 1,748 million, a decrease of 2.8% from the prior-year period, with a return on equity (ROE) of 16.9% [2][8] - The net income for the third quarter of 2025 was NIS 581 million, down 6.3% year-over-year, with an ROE of 16.2%. Excluding nonrecurring losses, the adjusted net income for the third quarter was NIS 624 million, resulting in a 17.4% ROE [2][8] Revenue and Income Sources - Total revenues for the first nine months of 2025 increased by 6% year-over-year, amounting to NIS 5,337 million. Fee income rose by 17.5% to NIS 1,320 million during the same period [3][8] - Fee income for the third quarter grew by 16.4% compared to the same quarter last year [3] Asset and Liability Management - Gross credit to the public reached NIS 141.4 billion, reflecting an 11.9% increase from the prior-year period and a 3.4% increase from the second quarter of 2025 [4][8] - Deposits from the public totaled NIS 233 billion, up 9.4% year-over-year and 3.5% from the previous quarter [4][8] Capital and Equity - The equity attributable to the Bank's shareholders increased to NIS 14,543 million, representing an 11.3% growth compared to the prior-year period. The Tier 1 capital ratio stood at 11.39%, exceeding regulatory requirements by 2.16% [5][8] - The non-performing loan (NPL) ratio improved to 0.46%, down from 0.57% in the prior-year period, indicating a high-quality loan portfolio [5][8] Operational Efficiency - Operating and other expenses for the first nine months totaled NIS 2,383 million, with an efficiency ratio of 44.7% for the first nine months and 43.7% for the third quarter of 2025 [6][8] Taxation and Dividends - The provision for income taxes for the first nine months increased to NIS 1,157 million, with an effective tax rate of 39.0%, up from 36.3% in the prior-year period [7][8] - The Board of Directors approved a cash dividend distribution of NIS 436 million, representing 50% of the net income for the third quarter [7][8] Management Commentary - The CEO highlighted the resilience and strength of the Bank, noting rapid growth in deposits and customer assets, which surpassed NIS 1 trillion, while maintaining a balanced risk profile [10] - The management expressed optimism regarding the Israeli economy's potential for growth, particularly in light of recent geopolitical developments and the stability of the financial system [11]