Bank Leumi opens 2026 with the strongest results in the system: Net income of approx. NIS 2.3 billion ($742 million) and dividend distribution of NIS 1.3 billion ($411 million)
Rhea-AI Summary
Bank Leumi (TASE:LUMI, OTC:BLMIF) reported Q1 2026 net income of NIS 2.35 billion ($742 million), with return on equity of 13.6% (15.1% excluding a special bank tax) and an efficiency ratio of 29.1%.
Loans to the public rose 18.4% year-on-year to NIS 547.8 billion, while public deposits grew 16.5% to NIS 695 billion. Credit quality indicators remained strong, with an NPL ratio of 0.40% and loan loss expense ratio of 0.12%.
Shareholders' equity increased 8% to NIS 68.9 billion, and total assets grew 18.3% to NIS 903.9 billion. Bank Leumi announced a NIS 1.3 billion ($411 million) capital return for Q1 2026, split between cash dividends and share buybacks, equal to 55% of quarterly net income.
Positive
- Q1 2026 net income of NIS 2.35 billion, EPS NIS 1.58
- Efficiency ratio improved to 29.1% from 32.1% year-on-year
- Net loans to the public up 18.4% year-on-year to NIS 547.8 billion
- Corporate credit portfolio up 27.5% year-on-year to NIS 182.5 billion
- Public deposits up 16.5% year-on-year to NIS 695.0 billion
- Q1 2026 capital return of NIS 1.3 billion, 55% of net income
- NPL ratio at 0.40% and loan loss expense ratio at 0.12%
- Shareholders' equity up 8% year-on-year to NIS 68.9 billion
- Total assets up 18.3% year-on-year to NIS 903.9 billion
Negative
- Net income down 2.4% year-on-year from NIS 2.40 billion
- Return on equity declined to 13.6% from 15.4% year-on-year
- Net interest income decreased 2.7% year-on-year to NIS 3.91 billion
- Loan loss expenses rose 201.8% year-on-year to NIS 166 million
- CET1 ratio fell to 11.74% from 12.15% year-on-year
- Total capital ratio declined to 14.07% from 14.83% year-on-year
- Liquidity coverage ratio decreased to 117% from 124% year-on-year
- Tax provision increased 22.2% year-on-year to NIS 1.58 billion
News Market Reaction – BLMIF
In the May 19 session, BLMIF gained 3.31%, reflecting a moderate positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
- Return on equity in Q1:
13.6% (15.1% excluding the effect of the special tax imposed on Israeli banks this year) - Leumi's efficiency ratio continues to improve and remains the best in
Israel and among the best globally: stood at only29.1% in Q1, compared to32.1% in the corresponding quarter last year - Strong growth in corporate credit – above the average growth in the banking system:
10.3% growth in Q1 – an increase of27.5% compared to the corresponding quarter last year. This growth was driven by the expansion of business activity in fields which are in strategic focus, alongside support of the Israeli economy during the war - Responsible credit growth reflected in excellent credit quality metrics: NPL ratio among the lowest in the banking system –
040% , and a low loan loss expense ratio of only0.12% - Total capital return (cash dividend and share buyback) amounts to approx.
NIS 1.3 billion ($411 million - Deposits from the public: increased by
16.5% compared to the corresponding quarter last year - Robust financial indicators: CET1 ratio of
11.74% , total capital ratio of14.07% , and liquidity coverage ratio of117%
Net income in the first quarter of 2026 was the highest in the banking system, totaling
Return on equity in Q1 2026 was
Efficiency ratio in Q1 2026 was
Dividend for the first quarter of 2026 amounts to
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 Q1, Leumi's loan portfolio grew by a higher rate than the average growth rate in the banking system: the Bank's credit portfolio increased by a total rate of
Loan portfolio quality: Alongside credit growth, the Bank continues to present high-quality credit indicators. The NPL ratio remains among the lowest in the banking system, standing at only
Deposits by the public in Q1 2026 increased by
High capital adequacy: Common equity tier 1 capital ratio as at March 31, 2026 was
Liquidity coverage ratio as at March 31, 2025 was
Operation "Lion's Roar": Leumi was the first bank to announce a dedicated relief program for its customers, with an emphasis on IDF soldiers and reservists, small businesses and self-employed who suffered a loss of income, as well as retail and business customers whose homes or property were damaged or who were evacuated. The Bank subsequently adopted the relief program introduced by the Bank of
Development of Balance Sheet Items:
Shareholders' equity as at March 31, 2026 totaled
Net credit to the public as at March 31, 2026 totaled
Housing loans (mortgages) as at March 31, 2026 totaled
Credit to retail customers as at March 31, 2026 totaled
Credit to small businesses as at March 31, 2026 totaled
Middle-market credit as at March 31, 2026 totaled
Corporate credit as at March 31, 2026 totaled
Deposits by the public as at March 31, 2026 totaled
Deposits by retail customers as at March 31, 2026 totaled
Deposits by small businesses as at March 31, 2026 totaled
CET1 capital ratio as at March 31, 2026 was
Total capital ratio as at March 31, 2026 was
Leumi Group - Key Financials
Profit and profitability (in NIS million) | ||||
For the three months ended March 31 | Change in | Change in % | ||
2026 | 2025 | |||
Net interest income | 3,909 | 4,017 | (108) | (2.7) |
Loan loss expenses | 166 | 55 | 111 | 201.8 |
Non-interest income | 1,556 | 1,368 | 188 | 13.7 |
Operating and other expenses | 1,592 | 1,731 | (139) | (8.0) |
Profit before tax | 3,707 | 3,599 | 108 | 3.0 |
Provision for tax | 1,579 | 1,292 | 287 | 22.2 |
Profit after tax | 2,128 | 2,307 | (179) | (7.8) |
The Bank's share in profits of associates | 218 | 96 | 122 | 127.1 |
Net income attributable to the Bank's shareholders | 2,346 | 2,403 | (57) | (2.4) |
Return on equity (%) | 13.6 | 15.4 | ||
Earnings per share (NIS) | 1.58 | 1.60 | ||
Development of balance sheet items (in NIS million) | |||
As at March 31 | Change in % | ||
2026 | 2025 | ||
Net loans to the public | 547,780 | 462,847 | 18.4 |
Deposits by the public | 694,961 | 596,447 | 16.5 |
Shareholders' equity | 68,867 | 63,788 | 8.0 |
Total assets | 903,887 | 763,750 | 18.3 |
Principal financial ratios (%) | ||
As at March 31 | ||
2026 | 2025 | |
Net loans to the public to total assets | 60.6 | 60.6 |
Deposits by the public to total assets | 76.9 | 78.1 |
Total equity to risk assets | 14.07 | 14.83 |
Tier 1 capital to risk assets | 11.74 | 12.15 |
Leverage ratio | 6.71 | 7.27 |
Liquidity coverage ratio | 117 | 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
Conference Call Details
A webcast and conference call for analysts and investors will be held on the same day at 5 PM (
To access the webcast please register via the link below: BankLeumiQ1.2026-ENG
Please allow sufficient time for registration. There is no need for 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 the Leumi's Investor Relations website.
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.
View original content:SOURCE Bank Leumi