Bank Leumi stock named in Norway fund's $661 million exit

Norway's sovereign wealth fund withdrew investments from five Israeli banks, including Bank Leumi Le-Israel B.M., in a decision linked to an ethical review. Arab News reported on October 12, 2026, that the withdrawals were valued at 661 million US dollars as of June, with the amount covering the affected banking holdings collectively rather than Bank Leumi alone.

The report said the decision affected First International Bank of Israel, FIBI Holdings, Bank Leumi, Mizrahi Tefahot Bank and Bank Hapoalim. Norway's Government Pension Fund Global is managed by Norges Bank Investment Management, and the review concerned the fund's exposure to Israel's banking sector.

What the divestment means

For Bank Leumi investors, the development adds an external ownership and reputational consideration to the bank's operating performance. The report describes the fund's stated ethical rationale but does not attribute a separate financial charge or operating change to Bank Leumi.

The Arab News report places the announcement on October 12 and was updated on November 3. That timing matters: the latest update does not turn the earlier divestment decision into a new transaction on November 3.

Leumi's operating backdrop

Bank Leumi's investor-relations materials cite second-quarter 2026 net income of NIS 2.83 billion, return on equity of 16.3% and a cost-income ratio of 24.7%. The bank also says its second-quarter credit grew 3.4% to NIS 567 billion, while non-performing loans stood at 0.45%.

Investors will therefore weigh the ethical-review development against the bank's reported profitability, efficiency and credit-quality indicators. The available report does not establish a direct share-price reaction or a change to Leumi's earnings outlook.

For broader Israeli market context, investors can follow the TA-35 market theme.

More coverage is available in More news and analyses on Bank Leumi stock.