Bank Leumi Delivers Strong Second Quarter 2026 Results with Net Income of approx. $940M (NIS 2.8B), ROE of 16.3% and an Efficiency Ratio Among the Best Globally

Rhea-AI Summary

Bank Leumi (OTC: BLMIF) reported strong Q2 2026 results, with net income of NIS 2.8 billion (~$940m), up 8.5% year over year, and return on equity of 16.3%. Excluding a special bank tax, net income reached NIS 3.1 billion and ROE 17.9%.

The efficiency ratio improved to 24.7% versus 26.9% a year earlier and 29.1% in Q1 2026. The bank announced a NIS 1.4 billion capital return for the quarter (NIS 1.1b cash dividend plus buyback), equal to 50% of net income. Loans to the public rose 15.8% year over year, with corporate credit up 22.1%, while the NPL ratio remained low at 0.45%. Q2 loan loss expenses were NIS 291m (0.20% of average loans). Capital and liquidity stayed robust, with a CET1 ratio of 11.65%, total capital ratio of 14.43% and liquidity coverage ratio of 122% as of June 30, 2026.

Positive

• Net income up 8.5% YoY to NIS 2.8b in Q2 2026
• ROE of 16.3% in Q2; 17.9% excluding special bank tax
• Efficiency ratio improved to 24.7% from 26.9% a year earlier
• Capital return of NIS 1.4b in Q2, 50% payout of net income
• Loan book growth 15.8% YoY; corporate credit up 22.1%
• NPL ratio at 0.45% with loan loss expense of 0.20% in Q2

Negative

• CET1 ratio fell to 11.65% from 12.28% a year earlier
• Total capital ratio decreased to 14.43% from 14.86% YoY
• Liquidity coverage ratio declined to 122% from 130% YoY
• Loan loss expenses rose to NIS 291m in Q2, up 30.5% YoY
• H1 2026 ROE was 14.9%, down from 15.8% in H1 2025
• Net interest income H1 slipped 0.9% YoY to NIS 8.48b

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• Efficiency ratio remains the best in Israel, standing at only 24.7% in Q2, compared to 29.1% in the previous quarter, reflecting continued execution of Leumi's technology leadership and AI strategy
  
• Total capital return (cash dividend and share buyback) in Q2 amounts to approx. NIS 1.4 billion ($470 million)
• Strong growth in the loan portfolio – an increase of 9% from the beginning of the year, while corporate credit grew by 14% from the beginning of the year.
• Responsible credit growth is reflected in credit quality metrics: NPL ratio among the lowest in the banking system – 0.45%, and a low loan loss expense ratio of 0.20% in Q2 and 0.17% in the first half of the 2026
• Robust financial indicators: CET1 ratio of 11.65%, total capital ratio of 14.43% and liquidity coverage ratio of 122%

TEL AVIV, Israel, Aug. 12, 2026 /PRNewswire/ -- Bank Leumi (TASE: LUMI) published today its second quarter 2026 financial statements.

Q2 2026 Financial Highlights: 

Net income amounted to NIS 2.8 billion ($940 million), compared to NIS 2.6 billion ($873 million) in the corresponding quarter last year – an increase of 8.5%. Excluding the effect of the special tax imposed on banks, net income in the second quarter amounted to NIS 3.1 billion ($1 billion). Net income in the first half of 2026 amounted to NIS 5.2 billion ($1.7 billion). The first-half results reflect performance at the upper end of the annual profitability target, in line with the Bank's 2026 strategic plan of net income of NIS 9-11 billion.

Return on equity was 16.3%, compared to 16.2% in the corresponding quarter last year. Excluding the effect of the special tax on banks, ROE in the second quarter stood at 17.9%. ROE in the first half of 2026 was 14.9%, achieving the upper end of the return range defined in the strategic plan (the target set was an ROE of 13.75%-15.25%).

Efficiency ratio was 24.7%, compared to 26.9% in the corresponding quarter last year and compared to 29.1% in Q1 2026. Leumi's efficiency ratio remains the best in Israel and among the best globally over time, among others in light of the successful execution of its technology leadership and AI strategy in recent years.

Dividend amounts to NIS 1.4 billion ($470 million), of which NIS 1.1 billion ($369 million) is cash dividend and the remainder is share buyback. Total capital return represents 50% of the quarterly net income, in line with the strategic target.

Responsible growth in the loan portfolio with a focus on strategic segments:

During the quarter, the Bank continued to focus its credit growth on the corporate, commercial and mortgage segments. In Q2, Leumi's loan portfolio increased by 3.4%. Since the beginning of the year, the credit portfolio grew by a total rate of 9%, with the corporate portfolio growing by 14%, the commercial portfolio growing by 6.5% and the mortgage portfolio growing by 4.1%. The growth rate exceeds the target set in the Bank's strategic plan (an annual growth rate of 8%-10%).

Loan portfolio quality: Alongside credit growth, the Bank continues to maintain high-quality credit indicators. The NPL ratio stands at only 0.45%. Loan loss expenses in Q2 2026 amounted to NIS 291 million ($98 million), reflecting an expense rate of 0.20% of the average outstanding loans to the public, compared to an expense rate of 0.19% in the corresponding period last year. Loan loss expenses in the first half of 2026 amounted to NIS 457 million ($153 million), reflecting an expense rate of 0.17% of the average outstanding loans to the public, compared to an expense rate of 0.12% in the corresponding period last year. This marks the tenth consecutive quarter in which all the provision was collective, while the specific provision recorded an income.

Deposits by the public increased by 3.4%, amounting to NIS 719 billion ($241 billion).

High capital adequacy: Common equity tier 1 capital ratio as at June 30, 2026 was 11.65% and total capital ratio was 14.43%.

Liquidity coverage ratio as at June 30, 2026 was 122%.

Development of Balance Sheet Items:

Shareholders' equity as at June 30, 2026 totaled NIS 70.6 billion ($23.7 billion), compared to NIS 65.5 billion ($22 billion) as at June 30, 2026 - a 7.7% increase.

Net credit to the public as at June 30, 2026 totaled NIS 566.5 billion ($190.2 billion), compared to NIS 489.2 billion ($164.3 billion) as at June 30, 2025 – a 15.8% increase.

Housing loans (mortgages) as at June 30, 2026 totaled NIS 163.1 billion ($54.8 billion), compared to NIS 151.5 billion ($50.9 billion) as at June 30, 2025 - a 7.7% increase.

Credit to retail customers as at June 30, 2026 totaled NIS 32.4 billion ($10.9 billion), compared to NIS 30.6 billion ($10.3 billion) as at June 30, 2025 - a 5.7% increase.

Credit to small businesses as at June 30, 2026 totaled NIS 29.9 billion ($10 billion), compared to NIS 27.5 billion ($9.2 billion) as at June 30, 2025 - an 8.6% increase.

Middle-market credit as at June 30, 2026 totaled NIS 73.6 billion ($24.7 billion), compared to NIS 66.4 billion ($22.3 billion) as at June 30, 2025 - a 10.8% increase.

Corporate credit as at Jube 30, 2026 totaled NIS 188.5 billion ($63.3 billion), compared to NIS 154.5 billion ($51.9 billion) as at June 30, 2025 - a 22.1% increase.

Deposits by the public as at June 30, 2026 totaled NIS 718.9 billion ($241.4 billion), compared to NIS 642.3 billion ($215.7 billion) as at June 30, 2025 - an 11.9% increase.

Deposits by retail customers as at June 30, 2026 totaled NIS 230.3 billion ($77.3 billion), compared to NIS 227.3 billion ($76.3 billion) as at June 30, 2025 - a 1.3% increase.

Deposits by small businesses as at June 30, 2026 totaled NIS 62.3 billion ($20.9 billion), compared to NIS 60.4 billion ($20.3 billion) as at June 30, 2025 - a 3% increase.

CET1 capital ratio as at June 30, 2026 was 11.65%, compared to 12.28% as at June 30, 2025.

Total capital ratio as at June 30, 2026 was 14.43%, compared to 14.86% as at June 30, 2025.

Leumi Group - Key Financials

 

Profit and Profitability (in NIS millions)
	For the three months ended June 30		Change in NIS million	Change in %
	2026	2025
Net Interest income	4,572	4,540	32	0.7
Loan loss expenses	291	223	68	30.5
Non-interest income	2,016	1,446	570	39.4
Operating and other expenses	1,627	1,610	17	1.1
Profit before tax	4,670	4,153	517	12.4
Provision for tax	1,970	1,623	347	21.4
Profit after tax	2,700	2,530	170	6.7
The Bank's share in profits of associates	132	80	52	65.0
Net income attributable to the bank's shareholders	2,832	2,610	222	8.5
Return on equity (%)	16.3	16.2
Earnings per share (NIS)	1.92	1.74

 

 

	For the six months ended June 30		Change in NIS million	Change in %
	2026	2025
Net Interest income	8,481	8,557	(76)	(0.9)
Loan loss expenses	457	278	179	64.4
Non-interest income	3,572	2,814	758	26.9
Operating and other expenses	3,219	3,341	(122)	(3.7)
Profit before tax	8,377	7,752	625	8.1
Provision for tax	3,549	2,915	634	21.7
Profit after tax	4,828	4,837	(9)	(0.2)
The Bank's share in profits of associates	350	176	174	98.9
Net income attributable to the bank's shareholders	5,178	5,013	165	3.3
Return on equity (%)	14.9	15.8
Earnings per share (NIS)	3.50	3.34

 

 

Development of Balance Sheet Items (in NIS millions)
	As at June 30		Change in %
	2026	2025
Net loans to the public	566,516	489,227	15.8
Deposits by the public	718,887	642,253	11.9
Shareholders' equity	70,571	65,535	7.7
Total assets	947,264	844,333	12.2

 

 

Principal Financial Ratios (%)
	As at June 30
	2026	2025
Net loans to the public to total assets	59.8	57.9
Deposits by the public to total assets	75.9	76.1
Total equity to risk assets	14.43	14.86
Tier 1 capital to risk assets	11.65	12.28
Leverage ratio	6.58	6.98
Liquidity coverage ratio	122	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, 2026 - NIS 2.978.

Conference Call Details

A webcast and 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 webcast please register via the link below: BankLeumiQ2.2026-ENG

Please allow sufficient time for registration. There is no need for a password or access code.

The conference call and webcast will be accompanied by a presentation, which will be published on the day of the Financial Results release on the Israeli Securities Authority reporting website (MAGNA), and on Leumi's Investor Relations website.

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

For more information, please 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 do not replace the need to review the latest periodic and quarterly reports containing full information, including forward-looking information, as defined in the Israeli Securities Law, and set out in the aforementioned reports.

 

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SOURCE Bank Leumi

FAQ

How much net income did Bank Leumi (BLMIF) report for Q2 2026?

Bank Leumi reported Q2 2026 net income of NIS 2.8 billion (about $940 million). According to Bank Leumi, this was an 8.5% increase versus NIS 2.6 billion in Q2 2025, with net income reaching NIS 3.1 billion excluding a special bank tax.

What was Bank Leumi’s return on equity in Q2 2026 and H1 2026?

Bank Leumi’s Q2 2026 return on equity was 16.3%, or 17.9% excluding a special bank tax. According to Bank Leumi, H1 2026 ROE was 14.9%, within the 13.75%-15.25% strategic target range and slightly below 15.8% in H1 2025.

What dividend and buyback did Bank Leumi (BLMIF) announce for Q2 2026?

For Q2 2026, Bank Leumi announced a NIS 1.4 billion capital return, including NIS 1.1 billion cash dividend and the remainder via share buyback. According to Bank Leumi, this total distribution represents 50% of quarterly net income, aligned with its strategic payout target.

How did Bank Leumi’s loan portfolio and credit quality change by June 30, 2026?

By June 30, 2026, Bank Leumi’s net loans to the public rose 15.8% year over year to NIS 566.5 billion. According to Bank Leumi, corporate credit increased 22.1%, while credit quality remained strong with a non-performing loan ratio of 0.45% and collective-only loan loss provisions.

What are Bank Leumi’s capital and liquidity ratios as of June 30, 2026?

As of June 30, 2026, Bank Leumi reported a CET1 ratio of 11.65%, total capital ratio of 14.43% and liquidity coverage ratio of 122%. According to Bank Leumi, these levels reflect high capital adequacy, though all are slightly lower than the previous year’s figures.

How efficient is Bank Leumi’s cost structure in Q2 2026?

Bank Leumi’s Q2 2026 efficiency ratio was 24.7%, improved from 26.9% in Q2 2025 and 29.1% in Q1 2026. According to Bank Leumi, this reflects ongoing execution of its technology and AI strategy and positions it among the more efficient banks over time.

When is Bank Leumi’s Q2 2026 earnings conference call for investors?

Bank Leumi scheduled its Q2 2026 analyst and investor conference call for August 12, 2026 at 5:00 p.m. Israel, 3:00 p.m. UK and 10:00 a.m. ET. According to Bank Leumi, investors can access the live webcast via online registration and replay it on the investor relations website.