Consistent with the strategic plan presented at the beginning of the year: Leumi continues to show high double-digit returns - and a net income of NIS 2.4 billion ($646 million) in the first quarter of 2025

Rhea-AI Summary

Bank Leumi (BLMIF) reported strong Q1 2025 financial results with net income of NIS 2.4 billion ($646 million), up 12% year-over-year excluding one-off gains. The bank achieved a 15.4% return on equity and announced a capital return of NIS 961 million ($258 million), including both dividend and share buyback. Loan portfolio quality remained robust with low NPL ratio of 0.51% and troubled debts at 1.39%. The bank maintained strong capital ratios with Tier 1 at 12.15% and total capital ratio at 14.83%. Credit portfolio grew by 1.6% since year start, with corporate lending up 4.2%. The bank continued supporting customers affected by the ongoing war through various relief programs and donations, with total cost estimated at NIS 428 million ($115 million).

Positive

• Net income increased 12% YoY to NIS 2.4 billion ($646 million)
• Strong 15.4% return on equity in Q1 2025
• 40% capital return ratio through dividend and share buyback
• Excellent loan portfolio quality with low NPL ratio of 0.51%
• Credit portfolio grew 1.6% since year start, with corporate lending up 4.2%
• Improved efficiency ratio of 32.1% vs 33.4% last year
• Shareholders' equity increased 11.7% YoY

Negative

• Total capital ratio declined slightly to 14.83% from 15.02% YoY
• Non-interest income decreased 45.9% YoY
• Deposits growth remained flat at 0.1% YoY
• Liquidity coverage ratio decreased to 124% from 133% YoY

• Return on equity in Q1 2025: 15.4%
• Net income increased by 12% compared to the corresponding period last year*
• Capital return in Q1 2025 amounts to NIS 961 million ($258 million), out of which NIS 721 million ($194 million) is cash dividend and the remainder is share buyback – which together constitute 40% of the net income for the quarter
• Loan portfolio quality: NPL ratio and rate of troubled debts are among the lowest in the banking system, standing at 0.51% and 1.39% respectively
• Robust financial indicators: Tier 1 capital ratio of 12.15%, total capital ratio of 14.83% and liquidity coverage ratio of 124%

TEL AVIV, Israel, May 20, 2025 /PRNewswire/ -- Bank Leumi (TASE: LUMI) published today its financial statements for Q1 2025:

Net income in the first quarter of 2025 amounted to NIS 2.4 billion ($646 million), compared to NIS 2.1 billion ($565 million) in the corresponding period last year*.

Return on equity in the first quarter of 2025 was 15.4%, compared with 15.6% in the corresponding period last year*.

The efficiency ratio in Q1 2025 was 32.1%, compared with 33.4% in the corresponding period last year*.

Capital return in Q1 2025 amounts to NIS 961 million ($258 million), out of which NIS 721 million ($194 million) is cash dividend and the remainder is share buyback. The dividend and share buyback constitute 40% of the net income for the quarter.

*Net of the one-off capital gain (after tax) of NIS 632 million ($170 million) recorded in the corresponding period last year in respect of the sale of the Bank's HQ buildings in Tel Aviv

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. Since the beginning of the year, the credit portfolio grew by a total rate of 1.6%, with the corporate portfolio (including real estate) growing by 4.2%, the commercial portfolio growing by 0.8% and the mortgage portfolio growing by 1.2%.

Loan portfolio quality: Rate of troubled debts and NPL ratio continue to be low and reflect the quality of the loan portfolio, standing at 1.39% and 0.51% respectively. From the beginning of the year, troubled debts decreased by NIS 157 million ($42 million).

Loan loss expenses in Q1 2025 reflect an expense rate of 0.05% of the average outstanding loans to the public, compared to an expense rate of 0.21% in the corresponding period last year. The expense - which is entirely collective – was partially offset by income due to collections. The corresponding period last year was affected by an increase in provisions made in light of the war which broke out in October 2023. Despite the improvement in the portfolio's credit quality indicators, the loan loss provision continues to reflect the continued geopolitical and economic uncertainty against the backdrop of global and local developments.

High capital adequacy: Common equity tier 1 capital ratio as at March 31, 2025 was 12.15% and total capital ratio was 14.83%.

Liquidity coverage ratio as at March 31, 2025 was 124%.

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 reservists, 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 relief program (in several stages) to business and retail customers from across Israel – with an emphasis on residents of the southern and northern confrontation lines, including during Q1 2025.

The updated reliefs to eligible customers include, among others: interest on positive balances in the current account, reduction or exemption from interest on negative balances in the current account, mortgage payment deferrals, exemption from common current account fees and more.

Since the outbreak of the war, the Bank made substantial donations to residents of the confrontation lines, IDF soldiers - both on active and reserve duty, hospitals and first responder and aid organizations.

In addition, the Bank initiated and financed a series of unique aid projects, including: Providing ongoing multi-year assistance to Kibbutz Be'eri; the "National Harvest" project - under which college and university students who volunteered to assist farmers in harvesting crops on an ongoing basis received a full year's academic tuition from the Bank; the "Leumi Matriculation" initiative, under which the Bank assists youth across the country to prepare for their matriculation exams; the "Bank Leumi Wedding Project", under which the bank funded weddings to dozens of reservist couples whom served an extended period of reserve duty during the war; and the "National Recognition Project", under which the Bank financed hundreds of vacations in Northern Israel to individuals who established a significant voluntary initiative during the war – thus also assisting the rehabilitation of the North.  

The updated cost of the reliefs and donations provided during the war is estimated at NIS 428 million ($115 million).

Development of balance sheet items:

Shareholders' equity as at March 31, 2025 totaled NIS 63.8 billion ($17.2 billion), compared to NIS 57.1 billion ($15.4 billion) as at March 31, 2024 - an 11.7% increase.

Net credit to the public as at March 31, 2025 totaled NIS 462.8 billion ($124.5 billion), compared to NIS 428.6 billion ($115.3 billion) as at March 31, 2024 - an 8.0% increase.

Housing loans (mortgages) as at March 31, 2025 totaled NIS 148.3 billion ($39.9 billion), compared to NIS 134.3 billion ($36.1 billion) as at March 31, 2024 - a 10.4% increase.

Credit to retail customers as at March 31, 2025 totaled NIS 30.4 billion ($8.2 billion), compared to NIS 29.4 billion ($7.9 billion) as at March 31, 2024 - a 3.4% increase.

Credit to small businesses as at March 31, 2025 totaled NIS 27.5 billion ($7.4 billion), compared to NIS 26.5 billion ($7.1 billion) as at March 31, 2024 - a 3.8% increase.

Middle-market credit as at March 31, 2025 totaled NIS 65.6 billion ($17.6 billion), compared to NIS 63.3 billion ($17.0 billion) as at March 31, 2024 - a 3.6% increase.

Corporate credit as at March 31, 2025 totaled NIS 143.1 billion ($38.5 billion), compared to NIS 130.2 billion ($35.0 billion) as at March 31, 2024 - a 9.9% increase.

Deposits by the public as at March 31, 2025 totaled NIS 596.4 billion ($160.4 billion), compared to NIS 595.8 billion ($160.2 billion) as at March 31, 2024 - a 0.1% increase.

Deposits by retail customers as at March 31, 2025 totaled NIS 225.9 billion ($60.8 billion), compared to NIS 221.2 billion ($59.5 billion) as at March 31, 2024 - a 2.1% increase.

Deposits by small businesses as at March 31, 2025 totaled NIS 59.0 billion ($15.9 billion), compared to NIS 56.4 billion ($15.2 billion) as at March 31, 2024 - a 4.6% increase.

CET1 capital ratio as at March 31, 2025 was 12.15%, compared to 11.98% as at March 31, 2024.

Total capital ratio as at March 31, 2025 was 14.83%, compared to 15.02% as at March 31, 2024.

Leumi Group - Key Financials

Profit and profitability (in NIS million)

	For the three months ended March 31		Change in NIS million	Change in %
	2025	2024
Net interest income	4,017	3,767	250	6.6
Loan loss expenses	55	222	(167)	(75.2)
Non-interest income	1,368	2,528	(1,160)	(45.9)
Operating and other expenses	1,731	1,825	(94)	(5.2)
Profit before tax	3,599	4,248	(649)	(15.3)
Provision for tax	1,292	1,503	(211)	(14.0)
Profit after tax	2,307	2,745	(438)	(16.0)
The Bank's share in profits of associates	96	40	56	140
Net income attributable to the Bank's shareholders	2,403	2,785	(382)	(13.7)
Return on equity (%)	15.4	20.2
Earnings per share (NIS)	1.60	1.83

 

Development of balance sheet items (in NIS million) 

	As at March 31		Change in %
	2025	2024
Net loans to the public	462,847	428,582	8.0
Deposits by the public	596,447	595,805	0.1
Shareholders' equity	63,788	57,128	11.7
Total assets	763,750	753,673	1.3

 

Principal financial ratios (%) 

	As at March 31
	2025	2024
Net loans to the public to total assets	60.6	56.9
Deposits by the public to total assets	78.1	79.1
Total equity to risk assets	14.83	15.02
Tier 1 capital to risk assets	12.15	11.98
Leverage ratio	7.27	6.70
Liquidity coverage ratio	124	133

 

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 March 31, 2025 - NIS 3.718.

 

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.

 

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SOURCE Bank Leumi

FAQ

What was Bank Leumi's (BLMIF) net income in Q1 2025?

Bank Leumi reported a net income of NIS 2.4 billion ($646 million) in Q1 2025, representing a 12% increase year-over-year excluding one-off gains.

How much dividend and buyback did Bank Leumi announce for Q1 2025?

Bank Leumi announced a total capital return of NIS 961 million ($258 million), consisting of NIS 721 million ($194 million) in cash dividend and the remainder in share buyback, representing 40% of Q1 net income.

What was Bank Leumi's loan portfolio quality in Q1 2025?

Bank Leumi maintained excellent loan portfolio quality with an NPL ratio of 0.51% and troubled debts ratio of 1.39%, among the lowest in the banking system.

How did Bank Leumi's credit portfolio perform in Q1 2025?

The credit portfolio grew 1.6% since the start of 2025, with corporate portfolio growing 4.2%, commercial portfolio up 0.8%, and mortgage portfolio increasing 1.2%.

What support did Bank Leumi provide during the war in Q1 2025?

Bank Leumi provided various relief programs including interest benefits, fee exemptions, mortgage payment deferrals, and donations to affected communities, with total estimated cost of NIS 428 million ($115 million).