Bank Leumi concludes Q2 2025 with strong results: Net income of approx. NIS 2.6 billion ($774 million) and ROE of 16.2%; Distribution of a 50% dividend

Rhea-AI Summary

Bank Leumi (OTC:BLMIF) reported strong Q2 2025 results with net income of NIS 2.6 billion ($774 million), representing a 15% increase year-over-year. The bank achieved a return on equity of 16.2% and maintained an impressive efficiency ratio of 26.9%. Key highlights include a 50% dividend distribution totaling NIS 1.3 billion ($386 million), comprising NIS 979 million in cash and NIS 326 million in share buybacks.

The bank demonstrated solid growth with a 5.7% increase in loan portfolio and 7.7% growth in public deposits during Q2. Loan quality remained exceptional with an NPL ratio of just 0.43%. Financial indicators remained robust with a Tier 1 capital ratio of 12.3% and liquidity coverage ratio of 130%. The bank also implemented various relief initiatives during Operation "Rising Lion" at an estimated cost of NIS 85 million.

Positive

• Net income increased 15% YoY to NIS 2.6 billion ($774 million)
• Strong ROE of 16.2%, up from 15.9% in Q2 2024
• Exceptional efficiency ratio of 26.9%, improved from 28.7% YoY
• 50% dividend payout ratio with combined cash dividend and share buyback
• Very low NPL ratio of 0.43%, among the lowest in the banking system
• Corporate loan portfolio grew 15.4% YoY
• Total deposits increased 10.5% YoY

Negative

• Loan loss expenses increased to NIS 278 million in H1 2025, up 36.3% YoY
• Non-interest income declined 27.7% in H1 2025 compared to H1 2024
• Total capital ratio slightly decreased to 14.86% from 15.04% YoY

News Market Reaction – BLMIF

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• Dividend rate will increase to 50% of the net income for the quarter – totaling NIS 1.3 billion ($386 million), out of which approx. NIS 1 billion ($297 million) is cash dividend and the remainder is share buyback
• Leumi continues to present a low and solid efficiency ratio – among the best in the global financial system: 26.9%
• Responsible growth in the loan portfolio and deposits by the public in Q2 2025: 5.7% and 7.7% respectively
• Loan portfolio quality: NPL ratio among the lowest in the banking system – only 0.43%
• Robust financial indicators: Tier 1 capital ratio of 12.3%, total capital ratio of 14.9% and liquidity coverage ratio of 130%

TEL AVIV, Israel, Aug. 13, 2025 /PRNewswire/ -- Bank Leumi (TASE: LUMI) published today its financial statements for Q2 2025:

Net income in the second quarter of 2025 amounted to approx. NIS 2.6 billion ($774 million), compared to approx. NIS 2.3 billion ($673 million) in the corresponding period last year – a 15% increase.

Return on equity in the second quarter of 2025 was 16.2%, compared with 15.9% in the corresponding period last year.

The efficiency ratio in Q2 2025 was 26.9%, compared with 28.7% in the corresponding period last year.

Dividend in Q2 2025 amounts to NIS 1.3 billion ($386 million), out of which NIS 979 million ($290 million) is cash dividend and the remainder is share buyback – NIS 326 million ($97 million). The dividend and share buyback constitute 50% of the net income for the quarter.

Responsible growth in the loan portfolio in strategic segments: The Bank continues to focus its growth in the credit portfolio in the corporate, commercial and mortgage segments. In Q2 2025, the credit portfolio grew by 5.7%. Since the beginning of the year, the credit portfolio grew by a total rate of 7.4%, with the corporate portfolio growing by 12.5%, the commercial portfolio growing by 2.0% and the mortgage portfolio growing by 3.3%.

Loan portfolio quality: Alongside a high increase in the loan portfolio, the Bank continues to present a high-quality loan portfolio. The NPL ratio continues to be among the lowest in the banking system, standing at 0.43% only. Loan loss expenses in the first half of 2025 reflect an expense rate of 0.12% of the average outstanding loans to the public, compared to an expense rate of 0.09% in the corresponding period last year.

Deposits by the public increased by 7.7% in Q2 2025.

High capital adequacy: Common equity tier 1 capital ratio as at June 30, 2025 was 12.3% and total capital ratio was 14.9%.

Liquidity coverage ratio as at June 30, 2025 was 130%.

The Bank's initiatives due to the war: The Bank implemented many initiatives for the benefit of the general public and its customers, including a series of unique benefits for IDF soldiers and reservists, households whose homes or properties have been damaged and have been evacuated, business owners and self-employed.

These initiatives are part of Leumi's policy to expand the Bank of Israel's relief program, publishing its own comprehensive relief program (in several stages) to business and retail customers from across Israel, including during Operation "Rising Lion" in the first half of 2025.

The updated financial relief to eligible customers includes, among others: reimbursement of IDF reserve soldiers, deferral of mortgage and loan payments without being charged interest, reduction or exemption from interest charges on a negative balance in the current account (overdraft), providing interest on a positive balance in the current account, exemption from common current account fees and more.

In addition, since the outbreak of the war, the Bank made substantial donations for the benefit of residents of the confrontation lines, IDF soldiers - both on active and reserve duty, hospitals and first responder and aid organizations. The Bank also joined the national effort for rescuing Israelis that were stuck abroad during Operation "Rising Lion", by chartering a passenger ship to bring Israelis back home from Cyprus.

The total cost of relief and donations in Q2 2025 is estimated at NIS 85 million ($25 million).

Development of Balance Sheet Items:

Shareholders' equity as at June 30, 2025 totaled NIS 65.5 billion ($19.4 billion), compared to NIS 58.4 billion ($17.3 billion) as at June 30, 2024 - a 12.2% increase.

Net credit to the public as at June 30, 2025 totaled NIS 489.2 billion ($145.1 billion), compared to NIS 433.8 billion ($128.6 billion) as at June 30, 2024 – a 12.8% increase.

Housing loans (mortgages) as at June 30, 2025 totaled NIS 151.5 billion ($44.9billion), compared to NIS 138.3 billion ($41.0 billion) as at June 30, 2024 - a 9.5% increase.

Credit to retail customers as at June 30, 2025 totaled NIS 30.6 billion ($9.1 billion), compared to NIS 29.6 billion ($8.8 billion) as at June 30, 2024 - a 3.4% increase.

Credit to small businesses as at June 30, 2025 totaled NIS 27.5 billion ($8.2 billion), compared to NIS 26.7 billion ($7.9 billion) as at June 30, 2024 - a 3.0% increase.

Middle-market credit as at June 30, 2025 totaled NIS 66.4 billion ($19.7 billion), compared to NIS 63.8 billion ($18.9 billion) as at June 30, 2024 - a 4.1% increase.

Corporate credit as at June 30, 2025 totaled NIS 154.5 billion ($45.8 billion), compared to NIS 133.8 billion ($39.7 billion) as at June 30, 2024 - a 15.4% increase.

Deposits by the public as at June 30, 2025 totaled NIS 642.3 billion ($190.5 billion), compared to NIS 581.2 billion ($172.4 billion) as at June 30, 2024 - a 10.5% increase.

Deposits by retail customers as at June 30, 2025 totaled NIS 227.3 billion ($67.4 billion), compared to NIS 224.2 billion ($66.5 billion) as at June 30, 2024 - a 1.4% increase.

Deposits by small businesses as at June 30, 2025 totaled NIS 60.4 billion ($17.9 billion), compared to NIS 56.9 billion ($16.9 billion) as at June 30, 2024 - a 6.3% increase.

CET1 capital ratio as at June 30, 2025 was 12.28%, compared to 12.04% as at June 30, 2024.

Total capital ratio as at June 30, 2025 was 14.86%, compared to 15.04% as at June 30, 2024.

 

Leumi Group - Key Financials
Profit and Profitability (in NIS millions)
	For the three months ended June 30		Change in NIS million	Change in %
	2025	2024
Net Interest income	4,540	4,378	162	3.7
Loan loss expenses (income)	223	(18)	241
Non-interest income	1,446	1,365	81	5.9
Operating and other expenses	1,610	1,651	(41)	(2.5)
Profit before tax	4,153	4,110	43	1.0
Provision for tax	1,623	1,340	283	21.1
Profit after tax	2,530	2,770	(240)	(8.7)
The Bank's share in profits (losses) of associates	80	(501)	581
Net income attributable to the bank's shareholders	2,610	2,269	341	15.0
Return on equity (%)	16.2	15.9
Earnings per share (NIS)	1.74	1.49

 

 

	For the six months   ended June 30		Change in NIS million	Change in %
	2025	2024
Net Interest income	8,557	8,145	412	5.1
Loan loss expenses	278	204	74	36.3
Non-interest income	2,814	3,893	(1,079)	(27.7)
Operating and other expenses	3,341	3,476	(135)	(3.9)
Profit before tax	7,752	8,358	(606)	(7.3)
Provision for tax	2,915	2,843	72	2.5
Profit after tax	4,837	5,515	(678)	(12.3)
The Bank's share in profits (losses) of associates	176	(461)	637
Net income attributable to the bank's shareholders	5,013	5,054	(41)	(0.8)
Return on equity (%)	15.8	18.0
Earnings per share (NIS)	3.34	3.32

 

 

Development of Balance Sheet Items (in NIS millions)
	As at June 30		Change in %
	2025	2024
Net loans to the public	489,227	433,799	12.8
Deposits by the public	642,253	581,187	10.5
Shareholders' equity	65,535	58,435	12.2
Total assets	844,333	734,039	15.0

 

 

Principal Financial Ratios (%)
	As at June 30
	2025	2024
Net loans to the public to total assets	57.9	59.1
Deposits by the public to total assets	76.1	79.2
Total equity to risk assets	14.86	15.04
Tier 1 capital to risk assets	12.28	12.04
Leverage ratio	6.98	6.99
Liquidity coverage ratio	130	130

 

The data in this press release has been converted into US dollars solely for convenience purposes, at the representative exchange rate published by the Bank of Israel on June 30, 2025 - NIS 3.372.

Conference Call Details

A conference call for analysts and investors will be held on the same day at 5 PM (Israel); 3 PM (UK); 10 AM (ET) to discuss the results.

To access the conference call please use one of the numbers below (no passcode required):

Israel	03-918-0610
UK	0-800-917-9141
US & Canada	1-866-527-8676
All other locations	+972-3-918-0610

Please allow sufficient time for registration.

The conference call and webcast will make use of a presentation which will be published on the day of the publication of the Financial Results on the Israeli Securities Authority reporting website (MAGNA) and on the Leumi website under Investor Relations.

An archived recording of the webcast will be available on the Leumi website one business day after the publication of results.

For more information visit the investor relations page on our website or contact Michael Klahr, VP, Head of Investor Relations, at investorrelations@bankleumi.co.il

The conference call and webinar does not replace the need to review the latest periodic/quarterly reports containing full information, including forward-looking information, as defined in the Israeli Securities Law, and set out in the aforementioned reports.

FAQ

What was Bank Leumi's (BLMIF) net income for Q2 2025?

Bank Leumi reported a net income of NIS 2.6 billion ($774 million) in Q2 2025, representing a 15% increase from the same period last year.

How much dividend will Bank Leumi pay for Q2 2025?

Bank Leumi will distribute a total of NIS 1.3 billion ($386 million), consisting of NIS 979 million in cash dividend and NIS 326 million in share buybacks, representing 50% of quarterly net income.

What is Bank Leumi's NPL ratio in Q2 2025?

Bank Leumi maintained a very low NPL (Non-Performing Loans) ratio of 0.43%, which is among the lowest in the banking system.

How much did Bank Leumi's loan portfolio grow in Q2 2025?

The bank's loan portfolio grew by 5.7% in Q2 2025, with the corporate portfolio showing the strongest growth at 12.5%.

What was Bank Leumi's efficiency ratio in Q2 2025?

Bank Leumi achieved an impressive efficiency ratio of 26.9%, improved from 28.7% in the same period last year, ranking among the best in the global financial system.