First International Bank Of Israel, IL0005930388

First International Bank of Israel stock balances growth and payout

Published on 11/09/2026 at 16:51 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

First International Bank of Israel stock reflects strong lending growth and a large shareholder distribution. Profit pressure remains in focus.

Growth, earnings and shareholder returns

Credit to the public expanded while first-half net income declined year over year.
The bank reported improving asset quality and a strong quarterly payout.
Capital strength and lending risk remain important considerations for investors.

First International Bank Of Israel, IL0005930388, Illustration mit AI erstellt.

First International Bank of Israel reported strong lending growth alongside weaker first-half earnings in a CEO statement dated October 23, 2026. The bank's investor-relations statement showed a mixed operating picture for the first half of 2026.

Lending growth offsets weaker earnings

Net income reached NIS 583 million in the second quarter, compared with NIS 480 million in the first quarter and NIS 637 million in the year-earlier quarter. Return on equity was 16.0 percent, or 17.8 percent excluding the special tax levy imposed on the bank in 2026.

For the first half, net income fell 8.9 percent year over year to NIS 1.063 billion. Total net revenue declined 2.5 percent to NIS 3.449 billion as changes in consumer prices, interest rates and exchange rates weighed on the result. Fee and commission income increased 9.1 percent to NIS 937 million, partly offsetting that pressure.

Credit quality supports the balance sheet

Credit to the public rose 20.1 percent year over year to NIS 164.2 billion and increased 5.9 percent from the end of the first quarter. The bank said lending growth was driven primarily by exposure to the financial-services sector.

Asset quality improved at the same time. Exposure to problem credit risk declined 25 percent in the first half compared with the prior-year period, while the non-performing-loan ratio fell to 0.40 percent from 0.46 percent at the end of 2025. Public deposits increased 11.7 percent year over year to approximately NIS 251.4 billion.

Dividend keeps capital allocation central

The board approved a distribution of approximately NIS 558 million, equivalent to 96 percent of second-quarter net income. The bank said the distribution combined roughly half of quarterly earnings with an additional amount from remaining distributable profits. Its dividend yield stood at 6.1 percent as of June 30, 2026.

The Common Equity Tier 1 ratio was 10.87 percent, while shareholders' equity reached approximately NIS 14.9 billion. For investors, the combination of rapid credit expansion, lower first-half profit and a high payout keeps capital retention and future asset quality in focus.