Bank Leumi concludes Q3 2025 with an 18% increase in the net income, totaling NIS 2.7 billion ($817 million); ROE - 16.3%; Total dividend - NIS 2 billion ($605 million), 75% of the net income

Rhea-AI Summary

Bank Leumi (OTC: BLMIF) reported Q3 2025 net income of NIS 2.7 billion ($817M), up 18% year-over-year, with ROE 16.3% and an efficiency ratio of 27%. The bank declared a total dividend of NIS 2 billion ($605M) (approx. NIS 1.5 billion cash + up to NIS 500M buyback), equal to 75% of quarterly net income. Credit portfolio grew responsibly: +1.3% in Q3 and +8.8% YTD, with a low NPL ratio of 0.41%. CET1 was 12.33% and LCR 128%. The bank estimates Q3 relief costs of NIS 172M for war-related initiatives.

Positive

• Net income +18% QoQ/YoY to NIS 2.7 billion
• Dividend NIS 2 billion equals 75% of quarterly net income
• Credit portfolio +8.8% year-to-date
• NPL ratio at 0.41%, among lowest in system
• CET1 ratio 12.33% and LCR 128%

Negative

• Non-interest income down 11.6% for nine months
• Profit after tax -3.7% for nine months ended Sept 30, 2025
• Net interest income declined 1.6% in Q3 2025

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• Leumi continues to present a low efficiency ratio – among the best in the global financial system: 27%
• Responsible growth in the loan portfolio – 1.3% in the quarter and 8.8% since the beginning of the year
• Loan portfolio quality: NPL ratio among the lowest in the banking system – 0.41%
• Robust financial indicators: Tier 1 capital ratio of 12.33%, total capital ratio of 14.87% and liquidity coverage ratio of 128%

TEL AVIV, Israel , Nov. 18, 2025 /PRNewswire/ -- Bank Leumi (TASE: LUMI) published today its financial statements for Q3 2025:

Net income in the third quarter of 2025 amounted to NIS 2.7 billion ($817 million), compared to NIS 2.3 billion ($696 million) in the corresponding period last year – an 18% increase.

Return on equity in the third quarter of 2025 was 16.3%, compared with 15.5% in the corresponding period last year.

The efficiency ratio in Q3 2025 was 27%, compared with 31.1% in the corresponding period last year.

Dividend in Q3 2025 amounts to NIS 2 billion ($605 million), out of which approx. NIS 1.5 billion ($454 million) is cash dividend and the remainder is share buyback of up to NIS 500 million ($151 million). The dividend and share buyback constitute 75% 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 Q3 2025, the credit portfolio grew by 1.3%. Since the beginning of the year, the credit portfolio grew by a total rate of 8.8%, with the corporate portfolio growing by 15.7%, the commercial portfolio growing by 3.4% and the mortgage portfolio growing by 5.1%.

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 0.41%. Loan loss expenses in Q3 2025 reflect an expense rate of 0.03% of the average outstanding loans to the public, compared to an expense rate of 0.28% in the corresponding period last year.

High capital adequacy: Common equity tier 1 capital ratio as at September 30, 2025 was 12.33% and total capital ratio was 14.87%.

Liquidity coverage ratio as at September 30, 2025 was 128%.

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 in 2025.

The updated financial relief to eligible customers includes, among others: A NIS 3,000 reimbursement of IDF reserve soldiers, A 0.25% decrease in the prime lending rate for customers with loans or mortgages, a NIS 500 grant to hundreds of thousands of eligible customers, providing interest on a positive balance in the current account, reduction or exemption from interest charges on a negative balance in the current account (overdraft) 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 total cost of relief in Q3 2025 is estimated at NIS 172 million ($52 million).

Development of Balance Sheet Items:

Shareholders' equity as at September 30, 2025 totaled NIS 67 billion ($20.3 billion), compared to NIS 60.3 billion ($18.2 billion) as at September 30, 2024 - an 11.3% increase.

Net credit to the public as at September 30, 2025 totaled NIS 495.4 billion ($149.8 billion), compared to NIS 447 billion ($135.2 billion) as at September 30, 2024 – a 10.8% increase.

Housing loans (mortgages) as at September 30, 2025 totaled NIS 154.1 billion ($46.6 billion), compared to NIS 142.7 billion ($43.2 billion) as at September 30, 2024 – an 8% increase.

Credit to retail customers as at September 30, 2025 totaled NIS 31.1 billion ($9.4 billion), compared to NIS 30.3 billion ($9.2 billion) as at September 30, 2024 - a 2.6% increase.

Credit to small businesses as at September 30, 2025 totaled NIS 27.9 billion ($8.4 billion), compared to NIS 27 billion ($8.2 billion) as at September 30, 2024 - a 3.3% increase.

Middle-market credit as at September 30, 2025 totaled NIS 67.3 billion ($20.4 billion), compared to NIS 64.6 billion ($19.5 billion) as at September 30, 2024 - a 4.2% increase.

Corporate credit (including real estate) as at September 30, 2025 totaled NIS 158.9 billion ($48.1 billion), compared to NIS 135.8 billion ($41.1 billion) as at September 30, 2024 - a 17% increase.

Deposits by the public as at September 30, 2025 totaled NIS 641.1 billion ($193.9 billion), compared to NIS 588.3 billion ($177.9 billion) as at September 30, 2024 - a 9% increase.

Deposits by retail customers as at September 30, 2025 totaled NIS 229.1 billion ($69.3 billion), compared to NIS 226 billion ($68.4 billion) as at September 30, 2024 - a 1.4% increase.

Deposits by small businesses as at September 30, 2025 totaled NIS 60.4 billion ($18.3 billion), compared to NIS 57 billion ($17.2 billion) as at September 30, 2024 - a 5.8% increase.

CET1 capital ratio as at September 30, 2025 was 12.33%, compared to 12.07% as at September 30, 2024.

Total capital ratio as at Sep. 30, 2025 was 14.87%, compared to 14.77% as at Sep. 30, 2024.

 

Leumi Group - Key Financials

Profit and Profitability (in NIS millions)

	For the three months ended September 30		Change in NIS million	Change in %
	2025	2024
Net Interest income	4,471	4,545	(74)	(1.6)
Loan loss expenses	32	312	(280)	(89.7)
Non-interest income	1,490	978	512	52.4
Operating and other expenses	1,609	1,716	(107)	(6.2)
Profit before tax	4,320	3,495	(825)	23.6
Provision for tax	1,719	1,285	434	33.8
Profit after tax	2,601	2,210	391	17.7
The Bank's share in profits of associates	99	83	16	19.3
Net income attributable to the bank's shareholders	2,700	2,293	407	17.7
Return on equity (%)	16.3	15.5
Earnings per share (NIS)	1.81	1.51

 

	For the nine months ended September 30		Change in NIS million	Change in %
	2025	2024
Net Interest income	13,028	12,690	338	2.7
Loan loss expenses	310	516	(206)	(39.9)
Non-interest income	4,304	4,871	(567)	(11.6)
Operating and other expenses	4,950	5,192	(242)	(4.7)
Profit before tax	12,072	11,853	219	1.8
Provision for tax	4,634	4,128	506	12.3
Profit after tax	7,438	7,725	(287)	(3.7)
The Bank's share in profits (losses) of associates	275	(378)	653	-
Net income attributable to the bank's shareholders	7,713	7,347	366	5
Return on equity (%)	16	17.1
Earnings per share (NIS)	5.15	4.83

 

Development of Balance Sheet Items (in NIS millions)

	As at September 30		Change in %
	2025	2024
Net loans to the public	495,387	446,951	10.8
Deposits by the public	641,123	588,305	9
Shareholders' equity	67,043	60,258	11.3
Total assets	827,113	753,639	9.7

Principal Financial Ratios (%)

	As at September 30
	2025	2024
Net loans to the public to total assets	59.9	59.3
Deposits by the public to total assets	77.5	78.1
Total equity to risk assets	14.87	14.77
Tier 1 capital to risk assets	12.33	12.07
Leverage ratio	7.13	7.01
Liquidity coverage ratio	128	124

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 September 30, 2025 - NIS 3.306.

 

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 the link below: BankLeumiQ3.2025.

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 Irit Avissar, 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 did Bank Leumi (BLMIF) report for Q3 2025 net income and ROE?

Bank Leumi reported NIS 2.7 billion ($817M) net income in Q3 2025 and ROE 16.3%.

How much is Bank Leumi's Q3 2025 dividend and buyback (BLMIF)?

Total distribution is NIS 2 billion ($605M): ~NIS 1.5 billion cash dividend and up to NIS 500 million share buyback.

What loan growth and asset-quality figures did Bank Leumi report in Q3 2025 (BLMIF)?

Credit portfolio grew 1.3% in Q3 and 8.8% YTD; NPL ratio was 0.41%.

What are Bank Leumi's capital and liquidity metrics as of Sept 30, 2025 (BLMIF)?

Common equity tier 1 ratio was 12.33%, total capital ratio 14.87%, and liquidity coverage ratio 128%.

How much did Bank Leumi estimate war-related relief costs in Q3 2025?

The bank estimated NIS 172 million ($52M) in Q3 2025 relief costs related to the war.