First International Bank Of Israel, IL0005930388

First International Bank of Israel stock: Credit growth supports payout

Published on 11/06/2026 at 10:54 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

First International Bank of Israel stock remains supported by strong lending growth. The bank approved a NIS 558 million dividend for the second quarter.

Credit Growth Supports Shareholder Returns

First International Bank of Israel reported lower first-half net income despite strong lending growth.
Improving asset quality and a high payout support the bank's investor case.
Management is using technology and capital-market activity to improve efficiency.

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 statement published on October 23, 2026. The bank's investor-relations statement said credit to the public increased 20.1 percent year over year to NIS 164.2 billion.

Lending Growth Meets Lower Profit

Net income reached NIS 583 million in the second quarter, down 8.5 percent from the prior-year quarter. First-half net income totaled NIS 1.063 billion, a decline of 8.9 percent year over year, while first-half net revenues fell 2.5 percent to NIS 3.449 billion.

The earnings pressure reflected macroeconomic shifts in consumer-price inflation, interest rates and exchange rates. Growth in financing volumes and fee income partly offset those effects. Fee and commission income rose 9.1 percent to NIS 937 million during the first half.

Asset Quality Remains A Key Support

Credit quality improved as problem credit risk declined 25 percent in the first half from the prior-year period. The non-performing-loan ratio fell to 0.40 percent from 0.46 percent at the end of 2025, according to the bank.

Deposits from the public increased 11.7 percent year over year to approximately NIS 251.4 billion. The total client asset portfolio reached approximately NIS 1.23 trillion, up 20.8 percent from the prior-year period.

High Payout Keeps Investors Focused

The board approved a dividend distribution of approximately NIS 558 million, equivalent to 96 percent of second-quarter net income. The bank said its dividend yield stood at 6.1 percent as of June 30, 2026.

The Common Equity Tier 1 ratio was 10.87 percent, giving the group room to expand while distributing surplus capital. The first-half efficiency ratio was 47.7 percent, compared with 46.1 percent in the second quarter.

Israeli banking shares trade against a wider backdrop captured by current TA-35 market reports.

Further developments will depend on whether credit growth can continue to offset pressure on margins and macroeconomic-sensitive revenue. See more news and analyses on First International Bank of Israel stock.