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

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Rhea-AI Summary

First International Bank of Israel (OTC:FBKIF) reported Q1 2026 net income of NIS 480 million and return on equity of 13.2% (16.7% excluding excess capital and a special tax levy). Total income was NIS 1.65 billion.

Credit to the public rose 16.0% year over year to NIS 155 billion and the total customer asset portfolio increased about 25% to NIS 1.17 trillion. Fee income grew 9.2% to NIS 464 million, with no credit loss expenses and an NPL ratio of 0.42%. CET1 stood at 10.82%. The board approved a NIS 240 million dividend, around 50% of quarterly net income, implying a 6.1% dividend yield as of March 31, 2026.

Positive

Credit to the public +16.0% YoY to NIS 155 billion
Total customer asset portfolio +~25% YoY to NIS 1.17 trillion
Fee and commission income +9.2% YoY to NIS 464 million
No credit loss expenses recorded in Q1 2026
NPL ratio at 0.42%, down from 0.46% at end-2025
Common Equity Tier 1 ratio 10.82%, 1.58% above regulatory minimum
Dividend of NIS 240 million, about 50% of Q1 2026 net income
Dividend yield of 6.1% as of March 31, 2026

Negative

Net income declined to NIS 480 million from NIS 530 million YoY
Return on equity fell to 13.2% from 15.7% in Q1 2025
Total revenues down 1.2% YoY to NIS 1.65 billion
Efficiency ratio weakened to 49.4% from 47.5% a year earlier
Equity attributed to shareholders down 1.0% versus year-end 2025
Liquidity coverage ratio fell to 129% from 146% at March 31, 2025
Other comprehensive loss from available-for-sale bonds of NIS 234 million

AI-generated analysis. How Rhea-AI works. Not financial advice.

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05/18/2026 - 05:13 AM

TEL AVIV, Israel, May 18, 2026 /PRNewswire/ -- First International Bank of Israel (TASE: FIBI) one of Israel's major banking groups, today announced its results for the First quarter of 2026. Statements reflect accelerated growth and high profitability while maintaining financial strength.

Financial Highlights

Net income of NIS 480 million in the first quarter of 2026
Return on equity: 13. 2%
Return on equity, excluding excess capital above the Board's target and the special tax levy, stands at 16.7%
Credit to the public grew by 16.0% compared with the prior-year period and by 4.8% compared with year-end 2025
Total customer asset portfolio grew by approximately 25.1% compared with the prior-year period, and by approximately 1.0% compared with year-end 2025, reaching approximately NIS 1.17 trillion
Shareholders' equity totaled approximately NIS 14.5 billion, an increase of 5.0% compared with the prior-year period
Common Equity Tier 1 ratio: 10.82%
The FIBI Board of Directors approved a dividend distribution of approximately NIS 240 million, approximately 50% of net income for the first quarter of 2026.
Dividend yield as of March 31, 2026 stood at 6.1%

The FIBI Group's net income in the first quarter of 2026 totaled NIS 480 million, compared with NIS 530 million in the prior-year period. Return on equity reached 13.2% in the first quarter of 2026. Excluding the excess Common Equity Tier 1 ratio above the Board's target and the special tax levy applicable to the Bank in the first quarter of 2026, return on equity stands at 16.7%.

Credit to the public totaled approximately NIS 155 billion, an increase of 16.0% compared with the prior-year period and 4.8% compared with year-end 2025. Public deposits totaled approximately NIS 231.6 billion, an increase of 4.8% compared with the prior-year period. The total customer asset portfolio grew by approximately 25% compared with the prior-year period, reaching approximately NIS 1.17 trillion.

Total revenues in the first quarter of 2026 amounted to NIS 1.65 billion, a decrease of 1.2% (before credit losses) compared with the prior-year period. The decrease is driven primarily by macroeconomic shifts in the CPI, interest rates, and exchange rates, and is offset by higher operating volumes.

Fee and commission income grew by 9.2% compared with the prior-year period, totaling NIS 464 million.

The Bank maintains a high-quality credit portfolio. No credit loss expenses were recorded this quarter. The NPL ratio (non-accrual loans or loans that are 90 days or more past due, as a percentage of credit to the public) stands at 0.42%, compared with 0.46% at year-end 2025.

Shareholders' equity totaled approximately NIS 14.5 billion, an increase of 5.0% compared with the prior-year period and a decrease of 1.0% compared with year-end 2025. The reduction in excess capital was achieved through increased dividend distributions and growth in credit to the public and operations. The Common Equity Tier 1 ratio is 10.82%, which exceeds the regulatory capital requirement by 1.58% and supports continued growth in the Group's operations and distribution of surplus capital as dividends.

Operating and other expenses totaled NIS 814 million, an increase of NIS 22 million (2.8%) compared with the prior-year period. This increase is driven primarily by a NIS 35 million increase in other expenses, which is mainly attributable to commission expenses associated with expanded capital markets operations (offset by a corresponding increase in revenues) and customer benefits extended under the banking system's voluntary relief framework. The efficiency ratio for the first quarter of 2026 stands at 49.4%.

The Board of Directors approved a dividend distribution to shareholders totaling approximately NIS 240 million, approximately 50% of the net income for the first quarter of 2026. The dividend yield as of 31.3.2026 stood at 6.1%.

Eli Cohen, CEO of First International Bank of Israel: "In this quarter, FIBI conducted its operations against the backdrop of the ongoing war and a complex, dynamic macroeconomic environment. In addition to the conflict, the interest rate environment, dollar exchange rate volatility, and developments in global markets - all presented significant challenges for the economy and the banking system, which continued to demonstrate exceptional resilience even under security threats.

"Our results for the first quarter of 2026 reflect the Bank's financial strength, the quality of our credit portfolio, and our deep commitment to our customers. They attest to a consistent strategy, rigorous risk management, and continued rapid growth across all business lines. Throughout the period, we maintained uninterrupted, professional service to our retail and business customers, and the growth in activity reflects our customers' confidence in the Bank.

"In addition to the financial results, this quarter marks the beginning of a new chapter for the Bank: We are proud to announce the establishment of FIBI's AI Division—a strategic move that will position us at the forefront of banking innovation in Israel. The Division will spearhead the integration of artificial intelligence across all the Bank's processes, from enhancing customer experience to streamlining internal operations and facilitating data-driven decision-making.

"We view AI not merely as a technological tool, but as an engine driving growth and cultural transformation that will shape our path forward in the years ahead.

"I wish to sincerely thank the Bank's employees, who continued to demonstrate outstanding professionalism and dedication this year, and our customers for their continued trust."

PRINCIPAL DATA AND INDICES FOR THE
Condensed principal financial information and principal execution indices*

Principal execution indices
	For the three months ended March 31,		For the year ended December 31,
	2026	2025	2025
			in %
Return on equity attributed to shareholders of the Bank⁽¹⁾	⁽²⁾13.2	15.7	16.2
Return on average assets⁽¹⁾	0.69	0.84	0.86
Ratio of total income to average assets⁽¹⁾	2.4	2.6	2.6
Ratio of interest income, net to average assets⁽¹⁾	1.6	1.8	1.8
Ratio of fees to average assets⁽¹⁾	0.7	0.7	0.7
Efficiency ratio	49.4	47.5	46.1

	As of March 31,		As of December 31,
	2026	2025	2025
			in %
Ratio of tier 1 equity capital	10.82	11.31	11.10
Leverage ratio	5.12	5.22	5.04
Liquidity coverage ratio⁽³⁾	129	146	129
Net stable funding ratio	122	131	127

Principal credit quality indices
	For the three months ended March 31,		For the year ended December 31,
	2026	2025	2025
			in %
Ratio of provision for credit losses to credit to the public	1.03	1.22	1.11
Ratio of total provision for credit losses ⁽²⁾ to credit to the public	1.18	1.36	1.25
Ratio of non-accruing debts or in arrears of 90 days or more to credit to the public	0.42	0.46	0.46
Ratio of provision for credit losses to total non-accruing credit to the public	251.6	275.1	251.5
Ratio of net write-offs to average total credit to the public ⁽¹⁾	0.07	(0.05)	(0.01)
Ratio of expenses (income) for credit losses to average total credit to the public ⁽¹⁾	-	(0.03)	0.01

Principal data from the statement of income
	For the three months ended March 31,
	2026	2025

Net profit attributed to shareholders of the Bank	480	530
Interest Income, net	1,090	1,154
Expenses (income) from credit losses	-	(11)
Total non-Interest income	558	514
Of which: Fees	464	425
Total operating and other expenses	814	792
Of which: Salaries and related expenses	437	453
Primary net profit per share of NIS 0.05 par value (NIS)	4.78	5.28
Diluted net profit per share of NIS 0.05 par value (NIS)	4.78	5.28

Principal data from the balance sheet
	31.3.26	31.3.25	31.12.25
			NIS million
Total assets	272,602	253,748	277,833
of which: Cash and deposits with banks	70,439	77,342	83,776
Securities	39,211	35,946	38,266
Credit to the public, net	153,482	132,026	146,374
Total liabilities	257,531	239,296	262,634
of which: Deposits from the public	231,580	221,051	238,509
Deposits from banks	1,544	1,637	1,906
Bonds and subordinated capital notes	9,623	4,458	6,791
Capital attributed to the shareholders of the Bank	14,465	13,773	14,614

Additional data
	31.3.26	31.3.25	31.12.25
			0.01 NIS
Share price	24,230	18,720	25,050
Dividend per share	510	227	1,191

_{* The 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, for the period ended March 31, 2026, excluding the excess of ratio of tier 1 equity capital above the goal set by the Board of Directors (9.50%) and excluding the estimated special tax levy applicable to the bank in the first quarter of 2026, amounted to 16.7%.}
_{(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 March 31		For the year ended December 31
	2026	2025	2025
	(unaudited)	(unaudited)	(audited)
Interest Income	2,717	2,803	11,771
Interest Expenses	1,627	1,649	6,949
Interest Income, net	1,090	1,154	4,822
Expenses (income) from credit losses	-	(11)	19
Net Interest Income after income from credit losses	1,090	1,165	4,803
Non- Interest Income
Non-Interest financing income	94	88	312
Fees	464	425	1,777
Other income	-	1	11
Total non- Interest income	558	514	2,100
Operating and other expenses
Salaries and related expenses	437	453	1,769
Maintenance and depreciation of premises and equipment	83	84	338
Amortizations and impairment of intangible assets	39	35	146
Other expenses	255	220	937
Total operating and other expenses	814	792	3,190
Profit before taxes	834	887	3,713
Provision for taxes on profit	349	354	1,386
Profit after taxes	485	533	2,327
The bank's share in profit of equity-basis investees, after taxes	18	22	35
Net profit:
Before attribution to non–controlling interests	503	555	2,362
Attributed to non–controlling interests	(23)	(25)	(102)
Attributed to shareholders of the Bank	480	530	2,260

			NIS
Primary profit per share attributed to the shareholders of the Bank
Net profit per share of NIS 0.05 par value	4.78	5.28	22.53
Diluted profit per share attributed to the shareholders of the Bank
Net profit per share of NIS 0.05 par value	4.78	5.28	22.52

STATEMENT OF COMPREHENSIVE INCOME
(NIS million)

	For the three months ended March 31		For the year Ended December 31
	2026	2025	2025
	(unaudited)	(unaudited)	(audited)
Net profit before attribution to non–controlling interests	503	555	2,362
Net profit attributed to non–controlling interests	(23)	(25)	(102)
Net profit attributed to the shareholders of the Bank	480	530	2,260
Other comprehensive income (loss) before taxes:
Adjustments of available for sale bonds to fair value, net	(234)	38	281
Adjustments of liabilities in respect of employee benefits⁽¹⁾	37	26	(69)
Other comprehensive income (loss) before taxes	(197)	64	212
Related tax effect	83	(24)	(86)
Other comprehensive income (loss) before attribution to non–controlling interests, after taxes	(114)	40	126
Less other comprehensive income (loss) attributed to non–controlling interests	(2)	-	10
Other comprehensive income (loss) attributed to the shareholders of the Bank, after taxes	(112)	40	116
Comprehensive income before attribution to non–controlling interests	389	595	2,488
Comprehensive income attributed to non–controlling interests	(21)	(25)	(112)
Comprehensive income attributed to the shareholders of the Bank	368	570	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)

	March 31,		December 31,
	2026	2025	2025
	(unaudited)	(unaudited)	(audited)
Assets
Cash and deposits with banks	70,439	77,342	83,776
Securities	39,211	35,946	38,266
Securities borrowed or purchased under agreements to repurchase	21	71	355
Credit to the public	155,077	133,660	148,014
Provision for Credit losses	(1,595)	(1,634)	(1,640)
Credit to the public, net	153,482	132,026	146,374
Credit to the government	1,481	1,504	1,607
Investments in investee companies	896	866	875
Premises and equipment	869	858	871
Intangible assets	388	356	404
Assets in respect of derivative instruments	4,207	3,376	3,934
Other assets⁽²⁾	1,608	1,403	1,371
Total assets	272,602	253,748	277,833
Liabilities and Shareholders' Equity
Deposits from the public	231,580	221,051	238,509
Deposits from banks	1,544	1,637	1,906
Deposits from the Government	1,224	483	2,032
Securities lent or sold under agreements to repurchase	4,422	3,813	4,107
Bonds and subordinated capital notes	9,623	4,458	6,791
Liabilities in respect of derivative instruments	4,359	3,158	4,336
Other liabilities⁽¹⁾⁽³⁾	4,779	4,696	4,953
Total liabilities	257,531	239,296	262,634
Capital attributed to the shareholders of the Bank	14,465	13,773	14,614
Non-controlling interests	606	679	585
Total capital	15,071	14,452	15,199
Total liabilities and capital	272,602	253,748	277,833
(1) Of which: provision for credit losses in respect of off-balance sheet credit instruments in the amount of NIS 230 million and NIS 184 million and NIS 210 million as of 31.3.26, 31.3.25 and 31.12.25, respectively. (2) Of which: other assets measured at fair value in the amount of NIS 8 million and NIS 21 million and NIS 5 million as of 31.3.26, 31.3.25 and 31.12.25, respectively. (3) Of which: other liabilities measured at fair value in the amount of NIS 8 million and NIS 21 million and NIS 5 million as of 31.3.26, 31.3.25 and 31.12.25, respectively.

STATEMENT OF CHANGES IN EQUITY
(NIS million)

For the three months ended March 31, 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

930

(62)

13,746

14,614

585

15,199

Net profit for the period

480

503

Dividend

(512)

Repurchase of shares

(9)

Benefit due to share-based payment transactions

Other comprehensive loss, after tax effect

(112)

(2)

(114)

Balance as of March 31, 2026

918

925

(174)

13,714

14,465

606

15,071


			For the three months ended March 31, 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	-	-	-	-	530	530	25	555
Dividend	-	-	-	-	(228)	(228)	-	(228)
Benefit due to share-based payment transactions	-	1	1	-	-	1	-	1
Other comprehensive income, after tax effect	-	-	-	40	-	40	-	40
Balance as of March 31, 2025	927	1	928	(138)	12,983	13,773	679	14,452


			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 31.3.25 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

View original content:https://www.prnewswire.com/news-releases/first-international-bank-of-israel-reports-financial-results-for-the-first-quarter-of-2026-302774521.html

SOURCE First International Bank of Israel

FAQ

How did First International Bank of Israel (FBKIF) perform in Q1 2026?

First International Bank of Israel reported Q1 2026 net income of NIS 480 million and return on equity of 13.2%. According to the bank, total income reached NIS 1.65 billion, with fee income up 9.2% year over year and no credit loss expenses recorded.

What was First International Bank of Israel's Q1 2026 return on equity (FBKIF)?

First International Bank of Israel reported Q1 2026 return on equity of 13.2%, or 16.7% excluding excess capital and a special tax levy. According to the bank, shareholders’ equity was NIS 14.5 billion and the Common Equity Tier 1 ratio stood at 10.82%.

How did credit to the public and customer assets change for FBKIF in Q1 2026?

Credit to the public grew 16.0% year over year to about NIS 155 billion in Q1 2026. According to the bank, the total customer asset portfolio rose roughly 25% year over year to approximately NIS 1.17 trillion, supported by higher operating volumes.

What dividend did First International Bank of Israel (FBKIF) declare for Q1 2026?

The board approved a Q1 2026 dividend of about NIS 240 million, around 50% of net income. According to the bank, this payout translated into a 6.1% dividend yield based on the March 31, 2026 share price of 24,230 agorot.

How strong were First International Bank of Israel's capital ratios in Q1 2026?

First International Bank of Israel reported a Common Equity Tier 1 ratio of 10.82% in Q1 2026, exceeding the regulatory minimum by 1.58 percentage points. According to the bank, the leverage ratio stood at 5.12% and the net stable funding ratio at 122%.

What was FBKIF's asset quality and credit loss position in Q1 2026?

The bank reported no credit loss expenses in Q1 2026 and an NPL ratio of 0.42%. According to the bank, provisions for credit losses covered 251.6% of non-accruing credit, and the ratio of net write-offs to average total credit was 0.07%.

How did operating expenses and efficiency evolve for FBKIF in Q1 2026?

Operating and other expenses rose to NIS 814 million in Q1 2026, up 2.8% year over year. According to the bank, the efficiency ratio reached 49.4%, with higher other expenses tied to capital markets commissions and voluntary customer relief benefits.