First International Bank of Israel Reports Financial Results for the Second Quarter of 2026

Q: How are FBKIF's credit and deposit balances changing in 2026?

Credit to the public reached about NIS 164.2 billion , up 20.1% year over year and 5.9% since Q1 2026. According to First International Bank of Israel, deposits from the public grew 11.7% year over year to approximately NIS 251.4 billion as of June 30, 2026.

Q: What was First International Bank of Israel's return on equity in H1 2026?

In H1 2026, First International Bank of Israel posted a 14.5% return on equity , or 16.2% excluding a special tax levy. According to the bank, net income for the period totaled NIS 1,063 million , down 8.9% compared with the prior-year half.

Q: How strong are FBKIF's capital ratios and asset quality as of June 30, 2026?

First International Bank of Israel reported a Common Equity Tier 1 ratio of 10.87% , about 1.63 percentage points above the regulatory minimum. According to the bank, the non-performing loan ratio improved to 0.40% , down from 0.46% at year-end 2025.

Q: How did fees and operating expenses trend for FBKIF in H1 2026?

Fee and commission income rose 9.1% year over year to NIS 937 million in H1 2026. According to First International Bank of Israel, operating and other expenses increased 2.6% to NIS 1,626 million , leading to an efficiency ratio of 47.7% for the half.

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Rhea-AI Summary

First International Bank of Israel (FBKIF) reported Q2 2026 net income of NIS 583 million, up 21.5% versus Q1 2026 but 8.5% below Q2 2025, with return on equity of 16.0% (17.8% excluding a special tax levy). H1 2026 net income was NIS 1,063 million, down 8.9% year over year, and ROE was 14.5% (16.2% excluding the levy).

The Board approved a Q2 2026 dividend of about NIS 558 million, equal to 96% of quarterly net income, implying a 6.1% dividend yield on June 30, 2026. Credit to the public rose 20.1% year over year and 5.9% from Q1 2026 to roughly NIS 164 billion, while total client assets increased 20.8% to about NIS 1.23 trillion and deposits from the public grew 11.7% to NIS 251.4 billion. Net revenues in H1 2026 declined 2.5% amid macroeconomic shifts, but fee income grew 9.1% to NIS 937 million. Asset quality improved, with the NPL ratio falling to 0.40%, and the Common Equity Tier 1 ratio stood at 10.87%, about 1.63 percentage points above the regulatory minimum.

Positive

Q2 2026 net income NIS 583m, up 21.5% vs. Q1 2026
Q2 2026 ROE 16.0%, 17.8% excluding the 2026 special tax levy
Dividend for Q2 2026 NIS 558m, 96% of quarterly net income, 6.1% yield
Credit to the public NIS 164.2b, +20.1% YoY and +5.9% vs. Q1 2026
Total client assets ~NIS 1.23t, +20.8% vs. prior-year period
NPL ratio improved to 0.40% vs. 0.46% at year-end 2025

Negative

Q2 2026 net income down 8.5% vs. NIS 637m in Q2 2025
H1 2026 net income NIS 1,063m, down 8.9% vs. H1 2025
H1 2026 net revenues NIS 3,449m, a 2.5% year-over-year decline
Net interest income fell to NIS 1,192m in Q2 2026 from NIS 1,290m
Efficiency ratio worsened to 46.1% in Q2 2026 vs. 43.1% in Q2 2025
CET1 capital ratio 10.87%, down from 11.54% as of June 30, 2025

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08/12/2026 - 04:42 AM

TEL AVIV, Israel, Aug. 12, 2026 /PRNewswire/ -- First International Bank of Israel (TASE: FIBI) one of Israel's major banking groups, today announced its results for the Second quarter of 2026. Statements reflect accelerated growth and high profitability while maintaining financial strength.

Financial Highlights

Net income for Q2 2026: NIS 583 million.
Return on Equity: 16.0%
Return on Equity excluding the special tax levy: 17.8%

Net income for H1 2026: NIS 1,063 million
Return on Equity: 14.5%
Return on Equity excluding the special tax levy: 16.2%

The Board of Directors approved a dividend distribution of approximately NIS 558 million, representing approximately 96% of total net income for the quarter. This distribution includes approximately 50% of the net income for Q2 2026, and an additional amount drawn from the remaining distributable profits.
Dividend yield as of June 30, 2026, stood at 6.1%.

Credit to the public grew 20.1% compared with the prior-year period and 5.9% compared with the end of Q1 2026.

The total client asset portfolio grew 20.8% from the prior-year period and 5.7% from year-end 2026, totaling approximately NIS 1.23 trillion.

Shareholders' equity totaled approximately NIS 14.9 billion, an increase of 4.5% compared with the prior-year period. Common Equity Tier 1 ratio: 10.87%.

FIBI Group's net income in Q2 2026, totaled NIS 583 million, compared with NIS 480 million in Q1 2026, an increase of 21.5%, and compared with NIS 637 million in the prior-year quarter, a decrease of 8.5%. Return on Equity reached 16.0%. Return on Equity excluding the special tax levy imposed on the Bank in 2026 reached 17.8%.

Net income in H1 2026 totaled NIS 1,063 million, a decrease of 8.9% compared with the prior-year period. Return on Equity reached 14.5%. Return on Equity excluding the special tax levy imposed on the Bank in 2026 reached 16.2%.

Credit to the public totaled NIS 164.2 billion, up 20.1% from the prior-year period, and up 5.9% from Q1 2026. The growth in credit risk was driven primarily by lending to the financial services sector.
The Bank maintains a high-quality credit portfolio—exposure to problem credit risk declined 25% in H1 2026, compared with the prior-year period. The NPL ratio (non-accrual loans or loans 90 days or more past due as a percentage of credit to the public) continued to improve, reaching 0.40% compared with 0.46% at year-end 2025.

Deposits from the public totaled approximately NIS 251.4 billion, up 11.7% compared with the prior-year period and up 8.6% compared with the end of Q1 2026.
The total client asset portfolio grew approximately 20.8% compared with the prior-year period, reaching approximately NIS 1.23 trillion.

Total net revenues in H1 2026 amounted to NIS 3,449 million, a decrease of 2.5% compared with the prior-year period, driven primarily by macroeconomic shifts in the CPI, interest rates, and exchange rates, and partially offset by growth in financing activity volumes and fee income.

Fee and commission income in H1 2026 grew 9.1% compared with the prior-year period, totaling NIS 937 million.

Shareholders' equity totaled approximately NIS 14.9 billion, an increase of 4.5% compared with the prior-year period. The Common Equity Tier 1 ratio stands at 10.87%, exceeding the regulatory capital requirement by 1.63% and facilitating the continued growth of the Group's operations and accelerated distribution of surplus capital as dividends, in accordance with the framework approved at the beginning of the year.

Operating and other expenses in H1 2026 totaled NIS 1,626 million, an increase of NIS 41 million (2.6%) compared with the prior-year period; the increase was driven primarily by an increase in other expenses, and in particular, commission expenses stemming from the Bank's expanded capital markets operations, and was offset by an increase in revenues. The efficiency ratio for H1 2026 stands at 47.7%, and for Q2 2026—at 46.1%.

The Board of Directors approved a dividend distribution to shareholders totaling approximately NIS 558 million, representing 96% of total net income for the quarter. This distribution includes approximately 50% of the net income for Q2 2026 and an additional amount drawn from the remaining distributable profits. The dividend yield as of 30.6.2026, stood at 6.1%.

Eli Cohen, CEO of First International Bank of Israel: "Developments in 2026 reinforce the insight that financial management demands multidisciplinary expertise and a global perspective. As the leading bank in the Israeli capital markets, we enable our clients to navigate volatile markets while building tailored investment strategies that generate added value.

Alongside our strong position in the capital market, we remain a key financial partner for leading companies in the Israeli economy, small businesses, and individual clients. Our clients' trust and commitment facilitate accelerated growth in our credit portfolio and in client assets. The Bank's strong results for Q2 2026 offer the clearest proof that in an era of constant shifts in the domestic and global economy alike, clients seek, above all, an anchor of stability, expertise, and experience. FIBI continues to deliver just that, while maintaining strong capital adequacy and one of the highest-quality credit portfolios in the banking system.

In addition to expanding our business operations, we are harnessing the latest technology as a significant lever for efficiency gains: the digital revolution and the adoption of AI, automation, and workflow digitization enable us to accelerate the improvement in the Bank's operational efficiency and enhance client service.

As the banking system's leader in dividend yield, we continue to manage our capital actively and effectively, combining rapid business growth with increased value distribution to shareholders."

Condensed principal financial information and principal execution indices*

Principal execution indices
	For the three months ended June 30,		For the six months ended June 30,			For the year ended December 31,
	2026	2025	2026		2025	2025
						in %
Return on equity attributed to shareholders of the Bank⁽¹⁾	⁽²⁾16.0	18.3	⁽²⁾14.5		17.1	16.2
Return on average assets⁽¹⁾	0.82	0.99	0.76		0.91	0.86
Ratio of total income to average assets⁽¹⁾	2.5	2.9	2.4		2.7	2.6
Ratio of interest income, net to average assets ⁽¹⁾	1.7	2.0	1.6		1.9	1.8
Ratio of fees to average assets ⁽¹⁾	0.7	0.7	0.7		0.7	0.7
Efficiency ratio	46.1	43.1	47.7		45.2	46.1

		As of June 30,				As of December 31,
		2026		2025		2025
						in %
Ratio of tier 1 equity capital		10.87		11.54		11.10
Leverage ratio		4.85		5.26		5.04
Liquidity coverage ratio ⁽³⁾		127		134		129
Net stable funding ratio		122		125		127

Principal credit quality indices
	For the three months ended June 30,		For the six months ended June 30,			For the year ended December 31,
	2026	2025	2026		2025	2025
						in %
Ratio of provision for credit losses to credit to the public	0.96	1.19	0.96		1.19	1.11
Ratio of total provision for credit losses⁽⁴⁾ to credit to the public	1.08	1.33	1.08		1.33	1.25
Ratio of non-accruing debts or in arrears of 90 days or more to credit to the public	0.40	0.46	0.40		0.46	0.46
Ratio of provision for credit losses to total non-accruing credit to the public	249.2	271.5	249.2		271.5	251.5
Ratio of net write-offs to average total credit to the public ⁽¹⁾	0.04	(0.03)	0.05		(0.04)	(0.01)
Ratio of expenses (income) for credit losses to average total credit to the public⁽¹⁾	(0.10)	(0.05)	(0.05)		(0.04)	0.01

Principal data from the statement of income
		For the three months ended June 30,			For the six months ended June 30,
		2026	2025		2026	2025
		NIS million
Net profit attributed to shareholders of the Bank		583	637		1,063	1,167
Interest Income, net		1,192	1,290		2,282	2,444
Income from credit losses		(38)	(16)		(38)	(27)
Total non-Interest income		571	551		1,129	1,065
Of which: Fees		473	434		937	859
Total operating and other expenses		812	793		1,626	1,585
Of which: Salaries and related expenses		450	449		887	902
Primary net profit per share of NIS 0.05 par value (NIS)		5.82	6.35		10.60	11.63
Diluted net profit per share of NIS 0.05 par value (NIS)		5.82	6.35		10.60	11.63

Principal data from the balance sheet
		30.6.26		30.6.25		31.12.25
						NIS million
Total assets		293,955		262,507		277,833
of which: Cash and deposits with banks		83,533		79,142		83,776
Securities		38,465		37,432		38,266
Credit to the public, net		162,601		135,092		146,374
Total liabilities		278,421		247,537		262,634
of which: Deposits from the public		251,394		225,124		238,509
Deposits from banks		1,373		2,141		1,906
Bonds and subordinated capital notes		11,551		4,517		6,791
Capital attributed to the shareholders of the Bank		14,899		14,258		14,614

Additional data
		30.6.26		30.6.25		31.12.25
						0.01 NIS
Share price		21,090		24,370		25,050
Dividend per share		750		439		1,191
^* The condensed financial statements are prepared in accordance with the Public Reporting Directives and guidelines of the Supervisor of Banks, which primarily adopt accounting principles generally accepted in the United States (U.S. GAAP). ⁽¹⁾ Annualized. ⁽²⁾ The return on equity attributed to shareholders of the bank, excluding the excess of ratio of tier 1 equity capital above the goal set by the Board of Directors (9.50%) and excluding the special tax levy applicable to the bank in 2026, amounted to 20.0% in the second quarter of 2026 and 18.4% in the first half of 2026. excluding the special tax levy applicable to the bank in 2026, amounted to 20.0% in the second quarter of 2026 and 18.4% in the first half of 2026. ⁽³⁾ The ratio is computed in respect of the three months ended at the end of the reporting period. ⁽⁴⁾ Including provision in respect of off-balance sheet credit instruments.

CONSOLIDATED STATEMENT OF INCOME
(NIS million)
	For the three months ended June 30		For the six months ended June 30		For the year Ended December 31
	2026	2025	2026	2025	2025
	(unaudited)	(unaudited)	(unaudited)	(unaudited)	(audited)
Interest Income	2,924	3,019	5,641	5,822	11,771
Interest Expenses	1,732	1,729	3,359	3,378	6,949
Interest Income, net	1,192	1,290	2,282	2,444	4,822
Expenses (income) from credit losses	(38)	(16)	(38)	(27)	19
Net Interest Income after income from credit losses	1,230	1,306	2,320	2,471	4,803
Non- Interest Income
Non-Interest financing income	89	117	183	205	312
Fees	473	434	937	859	1,777
Other income	9	-	9	1	11
Total non- Interest income	571	551	1,129	1,065	2,100
Operating and other expenses
Salaries and related expenses	450	449	887	902	1,769
Maintenance and depreciation of premises and equipment	82	82	165	166	338
Amortizations and impairment of intangible assets	39	36	78	71	146
Other expenses	241	226	496	446	937
Total operating and other expenses	812	793	1,626	1,585	3,190
Profit before taxes	989	1,064	1,823	1,951	3,713
Provision for taxes on profit	405	416	754	770	1,386
Profit after taxes	584	648	1,069	1,181	2,327
The bank's share in profit of equity-basis investee, after taxes	26	16	44	38	35
Net profit:
Before attribution to non–controlling interests	610	664	1,113	1,219	2,362
Attributed to non–controlling interests	(27)	(27)	(50)	(52)	(102)
Attributed to shareholders of the Bank	583	637	1,063	1,167	2,260

	NIS
Primary profit per share attributed to the shareholders of the Bank
Net profit per share of NIS 0.05 par value	5.82	6.35	10.60	11.63	22.53
Diluted profit per share attributed to the shareholders of the Bank
Net profit per share of NIS 0.05 par value	5.82	6.35	10.60	11.63	22.52

STATEMENT OF COMPREHENSIVE INCOME
(NIS million)
	For the three months ended June 30		For the six months ended June 30		For the year Ended December 31
	2026	2025	2026	2025	2025
	(unaudited)	(unaudited)	(unaudited)	(unaudited)	(audited)
Net profit before attribution to non–controlling interests	610	664	1,113	1,219	2,362
Net profit attributed to non–controlling interests	(27)	(27)	(50)	(52)	(102)
Net profit attributed to the shareholders of the Bank	583	637	1,063	1,167	2,260
Other comprehensive income (loss) before taxes:
Adjustments of available for sale bonds to fair value, net	175	126	(59)	164	281
Adjustments of liabilities in respect of employee benefits⁽¹⁾	(19)	(17)	18	9	(69)
Other comprehensive income (loss) before taxes	156	109	(41)	173	212
Related tax effect	(65)	(43)	18	(67)	(86)
Other comprehensive income (loss) before attribution to non–controlling interests, after taxes	91	66	(23)	106	126
Less other comprehensive income attributed to non–controlling interests	2	6	-	6	10
Other comprehensive income (loss) attributed to the shareholders of the Bank, after taxes	89	60	(23)	100	116
Comprehensive income before attribution to non–controlling interests	701	730	1,090	1,325	2,488
Comprehensive income attributed to non–controlling interests	(29)	(33)	(50)	(58)	(112)
Comprehensive income attributed to the shareholders of the Bank	672	697	1,040	1,267	2,376
⁽¹⁾ Mostly reflects adjustments in respect of actuarial assessments as of the end of the period regarding defined benefits pension plans, of amounts recorded in the past in other comprehensive income.

CONSOLIDATED BALANCE SHEET
(NIS million)

	June 30,		December 31,
	2026	2025	2025
	(unaudited)	(unaudited)	(audited)
Assets
Cash and deposits with banks	83,533	79,142	83,776
Securities	38,465	37,432	38,266
Securities borrowed or purchased under agreements to repurchase	254	275	355
Credit to the public	164,181	136,724	148,014
Provision for Credit losses	(1,580)	(1,632)	(1,640)
Credit to the public, net	162,601	135,092	146,374
Credit to the government	905	1,396	1,607
Investments in investee companies	925	884	875
Premises and equipment	863	855	871
Intangible assets	388	355	404
Assets in respect of derivative instruments	3,694	5,729	3,934
Other assets⁽²⁾	2,327	1,347	1,371
Total assets	293,955	262,507	277,833
Liabilities and Shareholders' Equity
Deposits from the public	251,394	225,124	238,509
Deposits from banks	1,373	2,141	1,906
Deposits from the Government	1,491	1,020	2,032
Securities lent or sold under agreements to repurchase	4,703	4,180	4,107
Bonds and subordinated capital notes	11,551	4,517	6,791
Liabilities in respect of derivative instruments	3,815	6,176	4,336
Other liabilities⁽¹⁾⁽³⁾	4,094	4,379	4,953
Total liabilities	278,421	247,537	262,634
Capital attributed to the shareholders of the Bank	14,899	14,258	14,614
Non-controlling interests	635	712	585
Total capital	15,534	14,970	15,199
Total liabilities and capital	293,955	262,507	277,833
⁽¹⁾ Of which: provision for credit losses in respect of off-balance sheet credit instruments in the amount of NIS 193 million and NIS 180 million and NIS 210 million as of 30.6.26, 30.6.25 and 31.12.25, respectively.
⁽²⁾ Of which: other assets measured at fair value in the amount of NIS 4 million and NIS 21 million and NIS 5 million as of 30.6.26, 30.6.25 and 31.12.25, respectively.
⁽³⁾ Of which: other liabilities measured at fair value in the amount of NIS 4 million and NIS 21 million and NIS 5 million as of 30.6.26, 30.6.25 and 31.12.25, respectively.

STATEMENT OF CHANGES IN EQUITY
(NIS million)

			For the three months ended June 30, 2026 (unaudited)
	Share capital and premium ⁽¹⁾	Capital reserves from benefit due to share-based payment transactions	Total capital and capital reserves	Accumulated other comprehensive income (loss)	Retained earnings ⁽²⁾	Total	Non- controlling interests	Total capital
Balance as of March 31, 2026	918	7	925	(174)	13,714	14,465	606	15,071
Net profit for the period	-	-	-	-	583	583	27	610
Dividend	-	-	-	-	(240)	(240)	-	(240)
Benefit due to share-based payment transactions	-	2	2	-	-	2	-	2
Other comprehensive income, after tax effect	-	-	-	89	-	89	2	91
Balance as of June 30, 2026	918	9	927	(85)	14,057	14,899	635	15,534


			For the three months ended June 30, 2025 (unaudited)
	Share capital and premium ⁽¹⁾	Capital reserves from benefit due to share-based payment transactions	Total capital and capital reserves	Accumulated other comprehensive income (loss)	Retained earnings ⁽²⁾	Total	Non- controlling interests	Total capital
Balance as of March 31, 2025	927	1	928	(138)	12,983	13,773	679	14,452
Net profit for the period	-	-	-	-	637	637	27	664
Dividend	-	-	-	-	(212)	(212)	-	(212)
Other comprehensive income, after tax effect	-	-	-	60	-	60	6	66
Balance as of June 30, 2025	927	1	928	(78)	13,408	14,258	712	14,970


			For the six months ended June 30, 2026 (unaudited)
	Share capital and premium⁽¹⁾	Capital reserves from benefit due to share-based payment transactions	Total capital and capital reserves	Accumulated other comprehensive income (loss)	Retained earnings ⁽²⁾	Total	Non- controlling interests	Total capital
Balance as of December 31, 2025 (audited)	927	3	930	(62)	13,746	14,614	585	15,199
Net profit for the period	-	-	-	-	1,063	1,063	50	1,113
Dividend	-	-	-	-	(752)	(752)	-	(752)
Repurchase of shares	(9)	-	(9)	-	-	(9)	-	(9)
Benefit due to share-based payment transactions	-	6	6	-	-	6	-	6
Other comprehensive loss, after tax effect	-	-	-	(23)	-	(23)	-	(23)
Balance as of June 30, 2026	918	9	927	(85)	14,057	14,899	635	15,534


			For the six months ended June 30, 2025 (unaudited)
	Share capital and premium⁽¹⁾	Capital reserves from benefit due to share-based payment transactions	Total capital and capital reserves	Accumulated other comprehensive income (loss)	Retained earnings⁽²⁾	Total	Non- controlling interests	Total capital
Balance as of December 31, 2024 (audited)	927	-	927	(178)	12,681	13,430	654	14,084
Net profit for the period	-	-	-	-	1,167	1,167	52	1,219
Dividend	-	-	-	-	(440)	(440)	-	(440)
Benefit due to share-based payment transactions	-	1	1	-	-	1	-	1
Other comprehensive income, after tax effect	-	-	-	100	-	100	6	106
Balance as of June 30, 2025	927	1	928	(78)	13,408	14,258	712	14,970

			For the year ended December 31, 2025 (audited)
	Share capital and premium ⁽¹⁾	Capital reserves from benefit due to share-based payment transactions	Total capital and capital reserves	Accumulated other comprehensive income (loss)	Retained earnings ⁽²⁾	Total	Non- controlling interests	Total capital
Balance as of December 31, 2024	927	-	927	(178)	12,681	13,430	654	14,084
Net profit for the period	-	-	-	-	2,260	2,260	102	2,362
Dividend	-	-	-	-	(1,195)	(1,195)	(181)	(1,376)
Benefit due to share-based payment transactions	-	3	3	-	-	3	-	3
Other comprehensive income, after tax effect	-	-	-	116	-	116	10	126
Balance as of December 31, 2025	927	3	930	(62)	13,746	14,614	585	15,199
⁽¹⁾ Including share premium of NIS 304 million as from 1992 onwards (as of 30.6.25 and 31.12.25 - NIS 313 million).
⁽²⁾ Including an amount of NIS 2,391 million which cannot be distributed as dividend.

Contact:
Dafna Zucker
First International Bank of Israel
zucker.d@fibi.co.il
+972-3-519-6224

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SOURCE First International Bank of Israel

FAQ

How did First International Bank of Israel (FBKIF) perform in Q2 2026?

First International Bank of Israel reported Q2 2026 net income of NIS 583 million and return on equity of 16.0%. According to the bank, profit rose 21.5% versus Q1 2026 but declined 8.5% compared with Q2 2025.

What dividend did First International Bank of Israel (FBKIF) declare for Q2 2026?

The Board approved a Q2 2026 dividend of about NIS 558 million, equal to 96% of quarterly net income. According to First International Bank of Israel, this reflects roughly 50% of Q2 profit plus additional distributable reserves, with a 6.1% yield on June 30, 2026.

How are FBKIF's credit and deposit balances changing in 2026?

Credit to the public reached about NIS 164.2 billion, up 20.1% year over year and 5.9% since Q1 2026. According to First International Bank of Israel, deposits from the public grew 11.7% year over year to approximately NIS 251.4 billion as of June 30, 2026.

What was First International Bank of Israel's return on equity in H1 2026?

In H1 2026, First International Bank of Israel posted a 14.5% return on equity, or 16.2% excluding a special tax levy. According to the bank, net income for the period totaled NIS 1,063 million, down 8.9% compared with the prior-year half.

How strong are FBKIF's capital ratios and asset quality as of June 30, 2026?

First International Bank of Israel reported a Common Equity Tier 1 ratio of 10.87%, about 1.63 percentage points above the regulatory minimum. According to the bank, the non-performing loan ratio improved to 0.40%, down from 0.46% at year-end 2025.

How did fees and operating expenses trend for FBKIF in H1 2026?

Fee and commission income rose 9.1% year over year to NIS 937 million in H1 2026. According to First International Bank of Israel, operating and other expenses increased 2.6% to NIS 1,626 million, leading to an efficiency ratio of 47.7% for the half.