Norway fund divests from five banks: what it means for First International Bank of Israel stock

Norway's wealth fund divested from five Israeli banking groups on October 6, 2026, including First International Bank of Israel (ISIN IL0005930388). As Gulf Times reported on October 6, 2026, the combined stakes in the five banks were valued at USD 661 million as of June 30, 2026.

What does the divestment mean?

The fund's decision adds an ownership and reputational issue to the bank's operating picture, while the reported market reaction remained positive across the named Israeli lenders. Gulf Times said First International Bank of Israel shares were between 1.80 percent and 2.80 percent higher after the announcement, without assigning a separate move to the bank.

The divestment followed an ethics review concerning financial services linked to settlement construction, according to Gulf Times on October 6, 2026. The article said Norway's central bank board approved the recommendation after its Council on Ethics review.

Three events shape the story

On August 12, 2026, First International Bank of Israel reported second-quarter net income of ILS 583 million, according to Simply Wall St. The result provides a financial counterweight to the external ownership pressure.

On August 13, 2026, the board approved an ILS 558 million dividend, equal to 96.00 percent of quarterly net income, the same Simply Wall St report said. On October 6, 2026, the Norway wealth fund's divestment became the latest dated event in the sequence.

What dates come next?

Simply Wall St lists the annual general meeting for October 25, 2026. Investing.com lists November 24, 2026, as the next earnings date.

Stock valuation and legal risk

First International Bank of Israel was last at ILA 21,990 on the Tel Aviv Stock Exchange on October 8, 2026 at 2:58 p.m. IDT, while its market capitalization was ILS 22.1 billion. A separate legal overhang also matters: Simply Wall St reported on October 5, 2026 that a class action over unpaid interest on positive current-account balances had been allowed to proceed, while the bank traded at a P/E ratio of 10.50.

First International Bank of Israel operates as a regional bank serving households, businesses and private-banking customers, with the Tel Aviv Stock Exchange as its primary listing. The further course of trading is shown by the continuously updated real-time quote of First International Bank of Israel stock.

Market context: Market report TA-35.

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