Fitch affirms A- rating for Bank Leumi stock

Published on 10/22/2026 at 11:24 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Q2 net income rose 8.50 percent to ILS 2.83 billion. A 16.30 percent ROE frames Bank Leumi stock after Fitch affirmed A- on October 19, 2026.

Rating and earnings resilience

Fitch affirmed Bank Leumi's A- long-term rating on October 19, 2026.
Second-quarter 2026 net income reached ILS 2.83 billion after an 8.50 percent annual increase.
Return on equity was 16.30 percent in the second quarter of 2026.
Bank Leumi had an ILA 110.6 billion market capitalization on October 22, 2026.

Bank Leumi Le- Israel B.m, IL0006046119, Illustration mit AI erstellt.

Bank Leumi Le-Israel B.M. (IL0006046119) had its long-term issuer default rating affirmed at A- with a stable outlook on October 19, 2026, according to Fitch Ratings. The action keeps credit quality at the center of the investment case as the bank combines loan growth with strong capital and asset-quality measures.

Fitch sees resilient earnings

Fitch said operating profit increased to 2.90 percent of risk-weighted assets in the first half of 2026, compared with 2.80 percent in 2025. Loan growth reached 9.00 percent in the same period, while the impaired-loans ratio stood at 0.50 percent at the end of the first half.

The rating agency also identified a concrete risk. Bank Leumi's exposure to construction and real estate could pressure asset quality if property prices decline, although conservative underwriting and loan-loss coverage of 268.00 percent provide a buffer.

Three milestones shape the picture

Bank Leumi's recent chronology is clear: on June 3, 2026, it completed a USD 1 billion overseas CoCo bond issuance; on August 12, 2026, it reported second-quarter net income of ILS 2.83 billion; and on October 19, 2026, Fitch affirmed its A- rating. The first two company milestones appear on Bank Leumi's investor-relations page.

What supports the earnings profile?

The second-quarter 2026 results provide the operating answer. Net income rose 8.50 percent year over year to ILS 2.83 billion, return on equity reached 16.30 percent, and the cost-income ratio was 24.70 percent, according to the bank's investor-relations materials. Credit grew 3.40 percent during the quarter to ILS 567 billion, while non-performing loans stood at 0.45 percent.

For investors, the combination matters because profitability has held up alongside expansion. Fitch expects operating profit to remain above 2.30 percent of risk-weighted assets over the next two years, while the bank reported a CET1 ratio of 11.65 percent and a capital surplus of ILS 8.5 billion for the second quarter.

Market context and valuation

Bank Leumi was trading at ILA 7,531.00 on TASE on October 22, 2026 at 12:08 p.m. IDT. Its market capitalization was ILA 110.6 billion at the same timestamp, and the 52-week range was ILA 6,276.00 to ILA 8,098.00. The current quotation sits within that range, leaving the credit affirmation and the next earnings update as the clearest dated reference points for the stock.