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 For the year
months ended
ended March 31, 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 For the year
months ended
ended March 31, 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 For the year
ended
ended March 31 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 For the year
Ended
ended March 31 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 reserves Total Accumulated other Retained Non- Total
capital and from benefit due capital comprehensive earnings(2) controlling capital
premium(1) to share-based and income (loss) interests
payment capital
transactions reserves Total
Balance as of December 31,
2025 (audited) 927 3 930 (62) 13,746 14,614 585 15,199
Net profit for the period - 480 480 23 503
Dividend - (512) (512) (512)
Repurchase of shares (9) (9) - (9) (9)
Benefit due to share-based
payment transactions 4 4 - 4 4
Other comprehensive loss,
after tax effect (112) (112) (2) (114)
Balance as of March 31, 2026 918 7 925 (174) 13,714 14,465 606 15,071
For the three months ended March 31, 2025 (unaudited)
Share Capital reserves Total Accumulated other Retained Non- Total
capital and from benefit due capital comprehensive earnings controlling capital
premium(1) to share-based and income (loss) (2) interests
payment capital
transactions reserves Total
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 reserves Total Accumulated other Retained Non- Total
capital and from benefit due capital comprehensive earnings(2) controlling capital
premium(1) to share-based and income (loss) interests
payment capital
transactions reserves Total
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
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SOURCE First International Bank of Israel
