First International Bank of Israel Reports Financial Results for the Second Quarter of 2025

Rhea-AI Summary

First International Bank of Israel (TASE: FIBI) reported strong Q2 2025 financial results, with net income reaching NIS 637 million, up 4.6% year-over-year. The bank demonstrated robust growth with credit to the public increasing by 12% and deposits growing by 10.3% year-over-year. Customer assets surged by 34.4% to NIS 1,015 billion.

Key financial metrics include a return on equity of 18.3%, shareholders' equity of NIS 14.26 billion (up 13%), and a strong tier 1 capital ratio of 11.54%. The bank declared a dividend of NIS 319 million, representing 50% of Q2 net income. The bank's efficiency ratio improved to 43.1% in Q2 2025, while maintaining a healthy NPL ratio of 0.46%.

The bank's performance reflects accelerated growth and high profitability while maintaining financial stability, positioning it for continued expansion in its core business activities.

Positive

• Net income increased 4.6% year-over-year to NIS 637 million in Q2 2025
• Credit to the public grew 12% year-over-year
• Customer assets surged 34.4% to NIS 1,015 billion
• Strong tier 1 capital ratio of 11.54%, 2.3% above regulatory requirement
• Improved efficiency ratio of 43.1% in Q2 2025
• Resumed dividend distribution at 50% of quarterly net income
• Low NPL ratio of 0.46%, improved from 0.59% year-over-year

Negative

• Return on equity declined to 18.3% from 19.6% in Q2 2024
• Net income for first half 2025 decreased 0.9% year-over-year
• Operating expenses increased to NIS 1,585 million in first half 2025

Reports record profits, with the financial statements reflecting accelerated growth and high profitability, whilst maintaining financial stability

TEL AVIV, Israel , Aug. 11, 2025 /PRNewswire/ -- First International Bank of Israel (TASE: FIBI) one of Israel's major banking groups, today announced its results for the second quarter of the year.

Financial Highlights

• Net income of NIS 637 million in the second quarter of 2025, an increase of 4.6% year-over-year, and a return on equity of -18.3%
• Pre-tax income amounted to NIS 1,951 million in the first half of the year, an increase of 6.6% year-over-year
• Net income in the first half of the year amounted to NIS 1,167 million, compared to -1,178 NIS million in the same period of last year, a decrease of 0.9%/
• Credit to the public, net, in the first half of the year increased by 12% year-over-year and by 2.3% in the second quarter of the year
• Deposits by the public, net, in the first half of the year increased by 10.3% year-over-year and by 1.8% in the second quarter of the year
• Customers' assets in the first half of the year grew by 34.4% year-over-year and by 8.3% in the second quarter of the year, reaching NIS 1,015 billion.
• Shareholders' equity in the Bank amounted to NIS 14,258 million, an increase of 13% year-over-year. The tier 1 capital ratio stands at11.54%
• The Bank's Board of Directors declared a dividend of NIS 319 million, representing 50% of the net income for the second quarter of the year

Second Quarter and First Half 2025 Results Summary

• The First International Bank Group's net income amounted to NIS 637 million in the second quarter of 2025, an increase of 4.6 % compared to the same quarter last year. The return on equity reached 18.3%.
• Pre-tax income amounted to NIS 1,951 million in the first six months of the year, an increase of 6.6% compared to the first half of the previous year. Net income amounted to NIS 1,167million in the first half of the year. The return on equity reached 17.1%.
• Credit to the public, net, amounted to NIS 135 billion, an increase of 12% compared to the end of the second quarter of last year, an increase of 4.4% compared to the end of 2024, and an increase of 2.3% in the second quarter of the year.
• Deposits by the public amounted to approximately NIS 225 billion, an increase of 10.3% compared to the end of the second quarter of last year, an increase of 4.8% compared to the end of 2024 and an increase of 1.8% in the second quarter of the year.
• Customers' assets portfolio increased by 34.4% compared to the same period last year, by 21% compared to the end of 2024, and by 8.3% in the second quarter of the year and amounted to NIS 1,015 billion.
• Shareholders' equity in the Bank increased to NIS 14.26 billion, an increase of 13% compared to the same period last year. The tier 1 capital ratio stood at 11.54% - approximately 2.3% percentage points above the regulatory requirement, supporting continued growth in the Group's activities.
• Net income from credit losses in the first half of 2025 amounted to NIS 27 million, representing 0.04% of the average balance of the credit to the public.
• The NPL ratio (non-performing loans as a percentage of total credit to the public, defined as loans that are non-accrual or more than 90 days past due) reached 0.46%, compared to 0.59% in the same period last year.
• Operating and other expenses amounted to NIS 1,585 million in the first half of 2025. The operating efficiency ratio was 45.2% in the first half of 2025 and 43.1% in the second quarter of 2025.
• The Bank's Board of Directors approved the distribution of a cash dividend in the amount of NIS 319 million to the shareholders, representing 50% of the net income in the second quarter. The Bank's Board of Directors will continue to review the Bank's dividend distribution policy in light of developments and the impact on the economy and on the Bank.

Management Comment

Eli Cohen, First International Bank's CEO commented: "The results for the second quarter of 2025 demonstrate record profits for the First International Bank. The profit was driven by annual growth of more than 10% in credit and deposits, which are the Bank's core fields of activity, among other factors. The capital markets, a segment in which we are leading players, stood out in particular, with the customers' portfolio assets increasing by 34.4% compared to the same period last year and crossing the one trillion shekel mark for the first time.

As part of the implementation of our dividend policy, we have resumed distributions at a rate of 50% of net income for the second quarter. This policy is reviewed on an ongoing basis. The Bank's high capital ratios and the other financial indicators demonstrate our financial strength and position us for continued accelerated growth.

I would like to thank the Bank's employees, who show their loyalty and their commitment even during conflict on both the frontlines and also on the home front, as they continue to provide essential and high-quality service to our customers. I pray for the swift and safe return of all of our soldiers and all the hostages."

 

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,
		2025		2024		2025		2024		2024
										in %
Return on equity attributed to shareholders of the Bank(1)		18.3		19.6		17.1		19.2		19.0
Return on average assets(1)		0.99		1.06		0.91		1.05		1.02
Ratio of total income to average assets(1)		2.9		2.9		2.7		2.9		2.9
Ratio of interest income, net to average assets (1)		2.0		2.1		1.9		2.1		2.0
Ratio of fees to average assets (1)		0.7		0.6		0.7		0.6		0.7
Efficiency ratio		43.1		44.7		45.2		45.4		44.1

 

		As of June 30,				As of December 31,
		2025		2024		2024
						in %
Ratio of equity capital tier 1		11.54		11.34		11.31
Leverage ratio		5.26		5.20		5.18
Liquidity coverage ratio (3)		134		172		165
Net stable funding ratio		125		149		140

 

Credit quality indices
		For the three months ended June 30,				For the six months ended June 30,				For the year ended December 31,
		2025		2024		2025		2024		2024
										in %
Ratio of provision for credit losses to credit to the public		1.19		1.32		1.19		1.32		1.25
Ratio of total provision for credit losses (2) to credit to the public		1.33		1.44		1.33		1.44		1.38
Ratio of non-accruing debts or in arrears of 90 days or more to credit to the public		0.46		0.59		0.46		0.59		0.53
Ratio of provision for credit losses to total non-accruing credit to the public		271.5		230.4		271.5		230.4		244.6
Ratio of net write-offs to average total credit to the public (1)		(0.03)		(0.15)		(0.04)		(0.08)		(0.04)
Ratio of income for credit losses to average total credit to the public (1)		(0.05)		(0.24)		(0.04)		(0.12)		(0.01)

 

Principal data from the statement of income
		For the three months ended June 30,				For the six months ended June 30,
		2025		2024		2025		2024
								NIS million
Net profit attributed to shareholders of the Bank		637		609		1,167		1,178
Interest Income, net		1,290		1,221		2,444		2,336
Income from credit losses		(16)		(71)		(27)		(73)
Total non-Interest income		551		418		1,065		884
Of which:      Fees		434		362		859		727
Total operating and other expenses		793		732		1,585		1,463
Of which:      Salaries and related expenses		449		*435		902		*882
Primary and diluted net profit per share of NIS 0.05 par value (NIS)		6.35		6.07		11.63		11.74

Principal data from the balance sheet
		30.6.25		30.6.24		31.12.24
						NIS million
Total assets		262,507		232,809		248,563
of which:    Cash and deposits with banks		79,142		77,663		77,175
Securities		37,432		27,237		34,396
Credit to the public, net		135,092		120,436		129,416
Total liabilities		247,537		219,604		234,479
of which:    Deposits from the public		225,124		204,069		214,755
Deposits from banks		2,141		2,735		2,508
Bonds and subordinated capital notes		4,517		4,689		4,479
Capital attributed to the shareholders of the Bank		14,258		12,615		13,430
Additional data
		30.6.25		30.6.24		31.12.24
						(0.01 NIS)
Share price		24,370		14,410		17,940
Dividend per share		439		495		986
*       Reclassified.
(1)    Annualized.
(2)    Including provision in respect of off-balance sheet credit instruments.
(3)    The ratio is computed in respect of the three months ended at the end of the reporting period.

 

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
		2025		2024		2025		2024		2024
		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(audited)
Interest Income		3,019		2,879		5,822		5,455		11,097
Interest Expenses		1,729		1,658		3,378		3,119		6,357
Interest Income, net		1,290		1,221		2,444		2,336		4,740
Income from credit losses		(16)		(71)		(27)		(73)		(16)
Net Interest Income after expenses from credit losses		1,306		1,292		2,471		2,409		4,756
Non- Interest Income
Non-Interest Financing income		117		47		205		147		432
Fees		434		362		859		727		1,553
Other income		-		9		1		10		21
Total non- Interest income		551		418		1,065		884		2,006
Operating and other expenses
Salaries and related expenses		449		*435		902		*882		1,739
Maintenance and depreciation of premises and equipment		82		*81		166		*163		359
Amortizations and impairment of intangible assets		36		32		71		63		134
Other expenses		226		184		446		355		745
Total operating and other expenses		793		732		1,585		1,463		2,977
Profit before taxes		1,064		978		1,951		1,830		3,785
Provision for taxes on profit		416		364		770		643		1,383
Profit after taxes		648		614		1,181		1,187		2,402
The bank's share in profit of equity-basis investee, after taxes		16		22		38		40		74
Net profit:
Before attribution to non‑controlling interests		664		636		1,219		1,227		2,476
Attributed to non‑controlling interests		(27)		(27)		(52)		(49)		(105)
Attributed to shareholders of the Bank		637		609		1,167		1,178		2,371
		NIS
Primary profit per share attributed to the shareholders    of the Bank
Net profit per share of NIS 0.05 par value		6.35		6.07		11.63		11.74		23.63
Diluted profit per share attributed to the shareholders    of the Bank
Net profit per share of NIS 0.05 par value		6.35		6.07		11.63		11.74		23.63
*       Reclassified.

 

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
		2025		2024		2025		2024		2024
		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(audited)
Net profit before attribution to non‑controlling interests		664		636		1,219		1,227		2,476
Net profit attributed to non‑controlling interests		(27)		(27)		(52)		(49)		(105)
Net profit attributed to the shareholders of the Bank		637		609		1,167		1,178		2,371
Other comprehensive income (loss) before taxes:
Adjustments of available for sale bonds to fair value, net		126		(200)		164		(244)		31
Adjustments of liabilities in respect of employee benefits(1)		(17)		1		9		12		(60)
Other comprehensive income (loss) before taxes		109		(199)		173		(232)		(29)
Related tax effect		(43)		73		(67)		90		9
Other comprehensive income (loss) before attribution to non‑controlling interests, after taxes		66		(126)		106		(142)		(20)
Less other comprehensive income (loss) attributed to non‑controlling interests		6		(5)		6		(5)		3
Other comprehensive income (loss) attributed to the shareholders of the Bank, after taxes		60		(121)		100		(137)		(23)
Comprehensive income before attribution to non‑controlling interests		730		510		1,325		1,085		2,456
Comprehensive income attributed to non‑controlling interests		(33)		(22)		(58)		(44)		(108)
Comprehensive income attributed to the shareholders of the Bank		697		488		1,267		1,041		2,348
(1)   Mostly reflects adjustments in respect of actuarial assessments as of the end of the period regarding defined benefits pension plans and deduction of amounts recorded in the past in other comprehensive income.

 

CONSOLIDATED BALANCE SHEET
(NIS million)
		June 30,				December 31,
		2025		2024		2024
		(unaudited)		(unaudited)		(audited)
Assets
Cash and deposits with banks		79,142		77,663		77,175
Securities		37,432		27,237		34,396
Securities borrowed		275		30		70
Credit to the public		136,724		122,044		131,050
Provision for Credit losses		(1,632)		(1,608)		(1,634)
Credit to the public, net		135,092		120,436		129,416
Credit to the government		1,396		1,421		1,496
Investment in investee company		884		825		842
Buildings and equipment		855		859		867
Intangible assets		355		348		363
Assets in respect of derivative instruments		5,729		2,670		2,565
Other assets(2)		1,347		1,320		1,373
Total assets		262,507		232,809		248,563
Liabilities and Capital
Deposits from the public		225,124		204,069		214,755
Deposits from banks		2,141		2,735		2,508
Deposits from the Government		1,020		719		2,540
Securities lent or sold under agreements to repurchase		4,180		744		2,304
Bonds and subordinated capital notes		4,517		4,689		4,479
Liabilities in respect of derivative instruments		6,176		2,388		2,729
Other liabilities(1)(3)		4,379		4,260		5,164
Total liabilities		247,537		219,604		234,479
Shareholders' equity		14,258		12,615		13,430
Non-controlling interests		712		590		654
Total capital		14,970		13,205		14,084
Total liabilities and capital		262,507		232,809		248,563
(1)    Of which: provision for credit losses in respect of off-balance sheet credit instruments in the amount of NIS 180 million and NIS 152 million and NIS 177 million at 30.6.25, 30.6.24 and 31.12.24, respectively.
(2)    Of which: other assets measured at fair value in the amount of NIS 21 million and NIS 3 million and NIS 1 million at 30.6.25, 30.6.24 and 31.12.24, respectively.
(3)    Of which: other liabilities measured at fair value in the amount of NIS 21 million and NIS 28 million and NIS 1 million at 30.6.25, 30.6.24 and 31.12.24, respectively.

 

STATEMENT OF CHANGES IN EQUITY
(NIS million)
		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 at June 30, 2025		927		1		928		(78)		13,408		14,258		712		14,970

 

		For the three months ended June 30, 2024 (unaudited)
		Share capital and premium (1)		Accumulated other comprehensive loss		Retained earnings (2)		Total		Non- controlling interests		Total capital
Balance as of March 31, 2024		927		(171)		11,599		12,355		597		12,952
Net profit for the period		-		-		609		609		27		636
Dividend		-		-		(228)		(228)		(29)		(257)
Other comprehensive loss, after tax effect		-		(121)		-		(121)		(5)		(126)
Balance as at June 30, 2024		927		(292)		11,980		12,615		590		13,205

 

		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 at June 30, 2025		927		1		928		(78)		13,408		14,258		712		14,970

		For the six months ended June 30, 2024 (unaudited)
		Share capital and premium (1)		Accumulated other comprehensive loss		Retained earnings (2)		Total		Non- controlling interests		Total capital
Balance as at December 31, 2023 (audited)		927		(155)		11,299		12,071		575		12,646
Net profit for the period		-		-		1,178		1,178		49		1,227
Dividend		-		-		(497)		(497)		(29)		(526)
Other comprehensive loss, after tax effect		-		(137)		-		(137)		(5)		(142)
Balance as at June 30, 2024		927		(292)		11,980		12,615		590		13,205
STATEMENT OF CHANGES IN EQUITY (CONT'D)
(NIS million)
		For the year ended December 31, 2024 (audited)
		Share capital and premium(1)		Accumulated other comprehensive loss		Retained earnings(2)		Total		Non- controlling interests		Total capital
Balance as at December 31, 2023		927		(155)		11,299		12,071		575		12,646
Net profit for the period		-		-		2,371		2,371		105		2,476
Dividend		-		-		(989)		(989)		(29)		(1,018)
Other comprehensive income (loss), after tax effect		-		(23)		-		(23)		3		(20)
Balance as at December 31, 2024		927		(178)		12,681		13,430		654		14,084
(1)    Including share premium of NIS 313 million (as from 1992 onwards).
(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.i
+972-3-519-6224

 

 

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SOURCE First International Bank of Israel

FAQ

What was First International Bank of Israel's (FBKIF) net income in Q2 2025?

First International Bank reported net income of NIS 637 million in Q2 2025, representing a 4.6% increase year-over-year.

How much dividend did FBKIF declare for Q2 2025?

The bank declared a dividend of NIS 319 million, which represents 50% of Q2 2025 net income.

What was FBKIF's credit growth in Q2 2025?

Credit to the public grew by 12% year-over-year and 2.3% quarter-over-quarter, reaching NIS 135 billion.

What is First International Bank's current capital ratio?

The bank's tier 1 capital ratio stands at 11.54%, which is 2.3 percentage points above the regulatory requirement.

How much did FBKIF's customer assets grow in 2025?

Customer assets grew by 34.4% year-over-year and 8.3% in Q2, reaching a record NIS 1,015 billion.

What was First International Bank's efficiency ratio in Q2 2025?

The bank's efficiency ratio improved to 43.1% in Q2 2025, compared to 44.7% in Q2 2024.