First International Bank of Israel Reports Financial Results for the Third Quarter of 2025
MWN-AI** Summary
First International Bank of Israel (FIBI), one of Israel's prominent banking institutions, announced its financial results for the third quarter of 2025, showcasing strong profitability and significant growth. The bank reported a net income of NIS 581 million for the quarter, reflecting a 6.3% decline from the previous year's comparable period. However, when adjusted for nonrecurring losses at CAL, net income rises to NIS 624 million, corresponding to a return on equity (ROE) of 17.4%.
In the first nine months of 2025, FIBI achieved a net income of NIS 1,748 million, slightly down by 2.8% year-over-year, while the ROE stood at a commendable 16.9%. Total revenues increased by 6%, reaching NIS 5,337 million, with fee income notably climbing by 17.5%.
FIBI's customer assets soared to NIS 1.074 trillion, marking a remarkable 34.4% growth since last year. The bank's gross credit to the public surged by 11.9%, totaling NIS 141.4 billion, while deposits rose by 9.4%, reaching NIS 233 billion.
The financial health of the bank remains robust, with a Tier 1 capital ratio of 11.39%, exceeding regulatory requirements. The non-performing loan (NPL) ratio improved to 0.46% from 0.57% a year earlier, indicating a sustained quality in the loan portfolio.
FIBI's Board of Directors has approved a cash dividend of NIS 436 million, representing 50% of the third quarter's net income. CEO Eli Cohen emphasized the bank's resilience amid challenging economic conditions and highlighted optimism for potential growth in the region. He acknowledged ongoing efforts to navigate challenges while promoting the bank's strategic focus on deposit and asset growth.
MWN-AI** Analysis
First International Bank of Israel (FIBI) has reported notable financial results for the third quarter of 2025, reflecting both resilience and profitability amidst a tumultuous economic environment influenced by regional conflicts. Key highlights include a net income of NIS 581 million, albeit a decline from the previous year due to nonrecurring losses in its CAL division. Excluding these impacts, core profitability improved with a net income of NIS 624 million and a return on equity (ROE) of 17.4%.
A pivotal aspect of FIBI's performance is its impressive growth in customer assets, which surged by 34.4% year-over-year, pushing total assets beyond NIS 1 trillion. The bank's gross credit to the public increased by 11.9%, signaling a robust demand for loans amidst a favorable economic backdrop following years of growth in Israel's high-tech sector and declining debt ratios. Notably, the bank's Tier 1 capital ratio remains strong at 11.39%, exceeding regulatory requirements and enabling continued expansion.
Investors should consider FIBI's decision to distribute NIS 436 million in dividends, reflecting a shareholder-friendly approach and reinforcing confidence in its earnings stability. However, potential risks remain, particularly related to geopolitical tensions and the broader economic implications of the ongoing conflict.
Given the current performance indicators and growth trajectory, FIBI appears poised for continued stability and potential upside. Investors might view the stock as an appealing option, particularly as the bank navigates through its strategic focus areas. Caution is advised, however, as external factors could impact results in the coming quarters. Overall, a balanced investment strategy aligning with FIBI's growth prospects and socio-economic landscape is recommended.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
PR Newswire
TEL AVIV, Israel, Nov. 17, 2025 /PRNewswire/ -- First International Bank of Israel (TASE: FIBI) one of Israel's major banking groups, today announced its results for the third quarter of 2025. Statements reflect accelerated growth and high profitability while maintaining financial strength
Financial Highlights
- Net income for the first nine months of the year: NIS 1,748 million. Return on Equity (ROE): 16.9%
- Net income for the third quarter of 2025: NIS 581 million. Return on Equity (ROE): 16.2%
- Income was affected by nonrecurring losses at CAL; excluding these losses, net income for the third quarter totals NIS 624 million, with a 17.4% ROE
- Total revenues for the first nine months of the year went up 6% from the prior-year period
- Customer assets went up 34.4% from the prior-year period and up 5.8% in the third quarter, totaling NIS 1.074 trillion
- Gross credit to the public went up 11.9% from the prior-year period, and up 3.4% in the third quarter of the year
- Deposits from the public went up 9.4% from the prior-year period, and up 3.5% in the third quarter of the year
- The equity attributable to the Bank's shareholders totaled NIS 14,543 million, up 11.3% from the prior-year period
- Tier 1 capital ratio: 11.39%
- The Bank's Board of Directors decided to approve an NIS 436 million dividend distribution, comprising 50% of the net income for the third quarter and an additional amount out of the remaining distributable profits
Third Quarter and nine month 2025 Results Summary
The FIBI Group's net income for the first nine months of the year totaled NIS 1,748 million, down 2.8% from the prior-year period. The ROE reached 16.9%.
Net income for the third quarter of 2025 totaled NIS 581 million, down 6.3% from the same quarter last year. ROE reached 16.2%.
Income was affected by nonrecurring losses at CAL; excluding these losses, net income for the third quarter totals NIS 624 million, with a 17.4% ROE.
Total revenues for the first nine months of the year went up 6% from the prior-year period, totaling NIS 5,337 million.
Fee income in the first nine months of the year went up 17.5% from the prior-year period, totaling NIS 1,320 million. Fee income for the third quarter went up 16.4% from the same quarter last year.
Gross credit to the public totaled NIS 141.4 billion, up 11.9% from the prior-year period, and up 3.4% from the second quarter of the year.
Deposits from the public totaled NIS 233 billion, up 9.4% from the prior-year period, and a 3.5% increase compared to the second quarter of the year.
The total customer asset portfolio went up 34.4% from the prior-year period and up 5.8% in the third quarter, totaling NIS 1.074 trillion.
The equity attributable to the Bank's shareholders went up to NIS 14,543 million, reflecting a 11.3% growth rate compared to the prior-year period. The Tier 1 capital ratio is 11.39%, which exceeds the regulatory capital requirement by 2.16% and facilitates the continued growth of the Group's operations.
High-quality loan portfolio: the non-performing loan (NPL) ratio (the rate of non-accruing loans or loans that are 90 or more days past due out of the total credit to the public) is 0.46%, compared to 0.57% for the prior-year period.
Operating and other expenses for the first nine months of the year totaled NIS 2,383 million. The efficiency ratio was 44.7% for the first nine months of the year and 43.7% for the third quarter of 2025.
The provision for income taxes for the first nine months of the year went up to NIS 1,157 million, compared to NIS 1,033 million for the prior-year period, and the effective tax rate was 39.0%, compared to 36.3% for the prior-year period. The tax rate increase mainly stems from income attributed to previous years for the prior-year period and an increase in the special fee applicable to banks.
The Bank's Board of Directors decided to approve an NIS 436 million cash dividend distribution to the shareholders, comprising 50% of the net income for the third quarter and an additional amount out of the remaining distributable income. The Board of Directors will continue to discuss the implementation of the Bank's dividend distribution policy in light of recent developments and their impact on the economy and on the Bank.
Management Comment
Eli Cohen, CEO of the First International Bank of Israel: "The First International Bank's results for the third quarter reflect resilience and strength, as well as our ability to deliver continued rapid growth in our core strategic focus areas: deposits and customer assets have grown rapidly, surpassing NIS 1 trillion, and the loan portfolio continues to grow while maintaining high quality of credit and a balanced risk profile.
"There is a great sense of optimism in the air as we celebrate the return of the living hostages and the progress on the ceasefire agreement. The economy has remained stable during the protracted and costly war, primarily because the country entered the conflict in strong condition following two decades of growth, with a thriving high-tech sector, a consistently declining debt-to-GDP ratio, a robust financial system, and substantial foreign currency reserves.
"The Israeli economy is now at an inflection point with potential for growth, especially noting the possibility of expanding the regional Abraham Accords. The situation remains fragile, and we must act responsibly so that the country and the economy successfully navigate the coming challenges as we continue to make progress toward resuming growth.
"I would like to thank the Bank's employees for their tireless dedication during these difficult times, and for their unwavering loyalty, professionalism, and commitment to the Bank and its customers, and to express hope for the return of the remaining fallen hostages to home to Israel for proper burial."
CONDENSED PRINCIPAL FINANCIAL INFORMATION AND PRINCIPAL EXECUTION INDICES
Principal execution indices
For the three months | For the nine months | For the year | ||||||||
2025 | 2024 | 2025 | 2024 | 2024 | ||||||
in % | ||||||||||
Return on equity attributed to shareholders of the Bank(1) | 16.2 | 19.4 | 16.9 | 19.4 | 19.0 | |||||
Return on average assets(1) | 0.88 | 1.05 | 0.90 | 1.05 | 1.02 | |||||
Ratio of total income to average assets(1) | 2.8 | 3.1 | 2.8 | 2.9 | 2.9 | |||||
Ratio of interest income, net to average assets(1) | 2.0 | 2.1 | 1.9 | 2.1 | 2.0 | |||||
Ratio of fees to average assets(1) | 0.7 | 0.7 | 0.7 | 0.7 | 0.7 | |||||
Efficiency ratio | 43.7 | 42.8 | 44.7 | 44.5 | 44.1 |
As of September 30, | As of December 31, | |||||
2025 | 2024 | 2024 | ||||
in % | ||||||
Ratio of tier 1 equity capital | 11.39 | 11.41 | 11.31 | |||
Leverage ratio | 5.19 | 5.17 | 5.18 | |||
Liquidity coverage ratio(3) | 131 | 171 | 165 | |||
Net stable funding ratio | 127 | 142 | 140 |
Principal credit quality indices
For the three months | For the nine months | For the year | ||||||||
2025 | 2024 | 2025 | 2024 | 2024 | ||||||
in % | ||||||||||
Ratio of provision for credit losses to credit to the public | 1.15 | 1.29 | 1.15 | 1.29 | 1.25 | |||||
Ratio of total provision for credit losses(2) to credit to the public | 1.29 | 1.41 | 1.29 | 1.41 | 1.38 | |||||
Ratio of non-accruing debts or in arrears of 90 days or more to credit to the public | 0.46 | 0.57 | 0.46 | 0.57 | 0.53 | |||||
Ratio of provision for credit losses to total non-accruing credit to the public | 256.2 | 230.5 | 256.2 | 230.5 | 244.6 | |||||
Ratio of net write-offs to average total credit to the public(1) | (0.01) | (0.01) | (0.03) | (0.06) | (0.04) | |||||
Ratio of expenses (income) for credit losses to average total credit to the public(1) | 0.05 | 0.07 | (0.01) | (0.06) | (0.01) |
Principal data from the statement of income
For the three months | For the nine months | |||||||
2025 | 2024 | 2025 | 2024 | |||||
NIS million | ||||||||
Net profit attributed to shareholders of the Bank | 581 | 620 | 1,748 | 1,798 | ||||
Interest Income, net | 1,290 | 1,265 | 3,734 | 3,601 | ||||
Expenses (income) from credit losses | 17 | 22 | (10) | (51) | ||||
Total non-Interest income | 538 | 552 | 1,603 | 1,436 | ||||
Of which: Fees | 461 | 396 | 1,320 | 1,123 | ||||
Total operating and other expenses | 798 | 777 | 2,383 | 2,240 | ||||
Of which: Salaries and related expenses | 438 | *435 | 1,340 | *1,317 | ||||
Primary and diluted net profit per share of NIS 0.05 par value (NIS) | 5.79 | 6.18 | 17.42 | 17.92 |
Principal data from the balance sheet
30.9.25 | 30.9.24 | 31.12.24 | ||||
NIS million | ||||||
Total assets | 269,499 | 242,512 | 248,563 | |||
of which: Cash and deposits with banks | 81,921 | 81,440 | 77,175 | |||
Securities | 37,995 | 28,860 | 34,396 | |||
Credit to the public, net | 139,808 | 124,749 | 129,416 | |||
Total liabilities | 254,273 | 228,823 | 234,479 | |||
of which: Deposits from the public | 233,020 | 212,907 | 214,755 | |||
Deposits from banks | 1,730 | 2,631 | 2,508 | |||
Bonds and subordinated capital notes | 5,836 | 4,474 | 4,479 | |||
Capital attributed to the shareholders of the Bank | 14,543 | 13,066 | 13,430 |
Additional data
30.9.25 | 30.9.24 | 31.12.24 | ||||
0.01 NIS | ||||||
Share price | 23,710 | 15,410 | 17,940 | |||
Dividend per share | 757 | 739 | 986 |
* Reclassified.
(1) Annualized.
(2) Including provision in respect of off-balance sheet credit instruments.
(3) The ratio is computed in respect of the three months ended at the end of the reporting period.
CONSOLIDATED STATEMENT OF INCOME
(NIS million)
For the three months | For the nine months | For the year | ||||||||
2025 | 2024 | 2025 | 2024 | 2024 | ||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | (audited) | ||||||
Interest Income | 3,120 | 2,955 | 8,942 | 8,410 | 11,097 | |||||
Interest Expenses | 1,830 | 1,690 | 5,208 | 4,809 | 6,357 | |||||
Interest Income, net | 1,290 | 1,265 | 3,734 | 3,601 | 4,740 | |||||
Expenses (income) from credit losses | 17 | 22 | (10) | (51) | (16) | |||||
Net Interest Income after income from credit losses | 1,273 | 1,243 | 3,744 | 3,652 | 4,756 | |||||
Non- Interest Income | ||||||||||
Non-Interest Financing income | 70 | 153 | 275 | 300 | 432 | |||||
Fees | 461 | 396 | 1,320 | 1,123 | 1,553 | |||||
Other income | 7 | 3 | 8 | 13 | 21 | |||||
Total non- Interest income | 538 | 552 | 1,603 | 1,436 | 2,006 | |||||
Operating and other expenses | ||||||||||
Salaries and related expenses | 438 | *435 | 1,340 | *1,317 | 1,739 | |||||
Maintenance and depreciation of premises and equipment | 85 | *116 | 251 | *279 | 359 | |||||
Amortizations and impairment of intangible assets | 37 | 36 | 108 | 99 | 134 | |||||
Other expenses | 238 | 190 | 684 | 545 | 745 | |||||
Total operating and other expenses | 798 | 777 | 2,383 | 2,240 | 2,977 | |||||
Profit before taxes | 1,013 | 1,018 | 2,964 | 2,848 | 3,785 | |||||
Provision for taxes on profit | 387 | 390 | 1,157 | 1,033 | 1,383 | |||||
Profit after taxes | 626 | 628 | 1,807 | 1,815 | 2,402 | |||||
The bank's share in profit (loss) of equity-basis investee, after taxes | (15) | 22 | 23 | 62 | 74 | |||||
Net profit: | ||||||||||
Before attribution to non?controlling interests | 611 | 650 | 1,830 | 1,877 | 2,476 | |||||
Attributed to non?controlling interests | (30) | (30) | (82) | (79) | (105) | |||||
Attributed to shareholders of the Bank | 581 | 620 | 1,748 | 1,798 | 2,371 | |||||
NIS | ||||||||||
Primary profit per share attributed to the shareholders | ||||||||||
Net profit per share of NIS 0.05 par value | 5.79 | 6.18 | 17.42 | 17.92 | 23.63 | |||||
Diluted profit per share attributed to the shareholders | ||||||||||
Net profit per share of NIS 0.05 par value | 5.79 | 6.18 | 17.42 | 17.92 | 23.63 |
* Reclassified.
STATEMENT OF COMPREHENSIVE INCOME
(NIS million)
For the three months | For the nine months | For the year Ended | ||||||||
2025 | 2024 | 2025 | 2024 | 2024 | ||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | (audited) | ||||||
Net profit before attribution to non?controlling interests | 611 | 650 | 1,830 | 1,877 | 2,476 | |||||
Net profit attributed to non?controlling interests | (30) | (30) | (82) | (79) | (105) | |||||
Net profit attributed to the shareholders of the Bank | 581 | 620 | 1,748 | 1,798 | 2,371 | |||||
Other comprehensive income (loss) before taxes: | ||||||||||
Adjustments of available for sale bonds to fair value, net | 39 | 129 | 203 | (115) | 31 | |||||
Adjustments of liabilities in respect of employee benefits(1) | (1) | (2) | 8 | 10 | (60) | |||||
Other comprehensive income (loss) before taxes | 38 | 127 | 211 | (105) | (29) | |||||
Related tax effect | (16) | (49) | (83) | 41 | 9 | |||||
Other comprehensive income (loss) before attribution to non?controlling interests, after taxes | 22 | 78 | 128 | (64) | (20) | |||||
Less other comprehensive income (loss) attributed to non?controlling interests | - | 3 | 6 | (2) | 3 | |||||
Other comprehensive income (loss) attributed to the shareholders of the Bank, after taxes | 22 | 75 | 122 | (62) | (23) | |||||
Comprehensive income before attribution to non?controlling interests | 633 | 728 | 1,958 | 1,813 | 2,456 | |||||
Comprehensive income attributed to non?controlling interests | (30) | (33) | (88) | (77) | (108) | |||||
Comprehensive income attributed to the shareholders of the Bank | 603 | 695 | 1,870 | 1,736 | 2,348 |
(1) Mostly reflects adjustments in respect of actuarial assessments as of the end of the period regarding defined benefits pension plans and deduction of amounts recorded in the past in other comprehensive income.
CONSOLIDATED BALANCE SHEET
(NIS million)
September 30, | December 31, | |||||
2025 | 2024 | 2024 | ||||
(unaudited) | (unaudited) | (audited) | ||||
Assets | ||||||
Cash and deposits with banks | 81,921 | 81,440 | 77,175 | |||
Securities | 37,995 | 28,860 | 34,396 | |||
Securities borrowed or purchased under agreements to repurchase | 184 | 147 | 70 | |||
Credit to the public | 141,432 | 126,374 | 131,050 | |||
Provision for Credit losses | (1,624) | (1,625) | (1,634) | |||
Credit to the public, net | 139,808 | 124,749 | 129,416 | |||
Credit to the government | 1,466 | 1,611 | 1,496 | |||
Investment in investee company | 862 | 854 | 842 | |||
Buildings and equipment | 865 | 852 | 867 | |||
Intangible assets | 362 | 350 | 363 | |||
Assets in respect of derivative instruments | 4,131 | 2,308 | 2,565 | |||
Other assets(2) | 1,905 | 1,341 | 1,373 | |||
Total assets | 269,499 | 242,512 | 248,563 | |||
Liabilities and Capital | ||||||
Deposits from the public | 233,020 | 212,907 | 214,755 | |||
Deposits from banks | 1,730 | 2,631 | 2,508 | |||
Deposits from the Government | 934 | 689 | 2,540 | |||
Securities lent or sold under agreements to repurchase | 3,623 | 1,542 | 2,304 | |||
Bonds and subordinated capital notes | 5,836 | 4,474 | 4,479 | |||
Liabilities in respect of derivative instruments | 4,520 | 2,086 | 2,729 | |||
Other liabilities(1)(3) | 4,610 | 4,494 | 5,164 | |||
Total liabilities | 254,273 | 228,823 | 234,479 | |||
Shareholders' equity | 14,543 | 13,066 | 13,430 | |||
Non-controlling interests | 683 | 623 | 654 | |||
Total capital | 15,226 | 13,689 | 14,084 | |||
Total liabilities and capital | 269,499 | 242,512 | 248,563 |
(1) Of which: provision for credit losses in respect of off-balance sheet credit instruments in the amount of NIS 207 million and NIS 160 million and NIS 177 million at 30.9.25, 30.9.24 and 31.12.24, respectively.
(2) Of which: other assets measured at fair value in the amount of NIS 12 million and NIS 16 million and NIS 1 million at 30.9.25, 30.9.24 and 31.12.24, respectively.
(3) Of which: other liabilities measured at fair value in the amount of NIS 12 million and NIS 48 million and NIS 1 million at 30.9.25, 30.9.24 and 31.12.24, respectively.
STATEMENT OF CHANGES IN EQUITY
(NIS million)
For the three months ended September 30, 2025 (unaudited) | ||||||||||||||||
Share | Capital | Total | Accumulated | Retained | Total | Non- | Total | |||||||||
Balance as of June 30, 2025 | 927 | 1 | 928 | (78) | 13,408 | 14,258 | 712 | 14,970 | ||||||||
Net profit for the period | - | - | - | - | 581 | 581 | 30 | 611 | ||||||||
Dividend | - | - | - | - | (319) | (319) | (59) | (378) | ||||||||
Benefit due to share-based payment transactions | - | 1 | 1 | - | - | 1 | - | 1 | ||||||||
Other comprehensive income, after tax effect | - | - | - | 22 | - | 22 | - | 22 | ||||||||
Balance as of September 30, 2025 | 927 | 2 | 929 | (56) | 13,670 | 14,543 | 683 | 15,226 |
For the three months ended September 30, 2024 (unaudited) | ||||||||||||
Share | Accumulated | Retained | Total | Non- | Total | |||||||
Balance as of June 30, 2024 | 927 | (292) | 11,980 | 12,615 | 590 | 13,205 | ||||||
Net profit for the period | - | - | 620 | 620 | 30 | 650 | ||||||
Dividend | - | - | (244) | (244) | - | (244) | ||||||
Other comprehensive income, after tax effect | - | 75 | - | 75 | 3 | 78 | ||||||
Balance as of September 30, 2024 | 927 | (217) | 12,356 | 13,066 | 623 | 13,689 |
For the nine months ended September 30, 2025 (unaudited) | ||||||||||||||||
Share | Capital | Total | Accumulated | Retained | Total | Non- | Total | |||||||||
Balance as of December 31, 2024 (audited) | 927 | - | 927 | (178) | 12,681 | 13,430 | 654 | 14,084 | ||||||||
Net profit for the period | - | - | - | - | 1,748 | 1,748 | 82 | 1,830 | ||||||||
Dividend | - | - | - | - | (759) | (759) | (59) | (818) | ||||||||
Benefit due to share-based payment transactions | - | 2 | 2 | - | - | 2 | - | 2 | ||||||||
Other comprehensive income, after tax effect | - | - | - | 122 | - | 122 | 6 | 128 | ||||||||
Balance as of September 30, 2025 | 927 | 2 | 929 | (56) | 13,670 | 14,543 | 683 | 15,226 |
For the nine months ended September 30, 2024 (unaudited) | ||||||||||||
Share | Accumulated | Retained | Total | Non- | Total | |||||||
Balance as at December 31, 2023 (audited) | 927 | (155) | 11,299 | 12,071 | 575 | 12,646 | ||||||
Net profit for the period | - | - | 1,798 | 1,798 | 79 | 1,877 | ||||||
Dividend | - | - | (741) | (741) | (29) | (770) | ||||||
Other comprehensive loss, after tax effect | - | (62) | - | (62) | (2) | (64) | ||||||
Balance as of September 30, 2024 | 927 | (217) | 12,356 | 13,066 | 623 | 13,689 |
STATEMENT OF CHANGES IN EQUITY (CONT'D)
(NIS million)
For the year ended December 31, 2024 (audited) | ||||||||||||
Share capital | Accumulated | Retained | Total | Non- | Total | |||||||
Balance as of December 31, 2023 | 927 | (155) | 11,299 | 12,071 | 575 | 12,646 | ||||||
Net profit for the period | - | - | 2,371 | 2,371 | 105 | 2,476 | ||||||
Dividend | - | - | (989) | (989) | (29) | (1,018) | ||||||
Other comprehensive income (loss), after tax effect | - | (23) | - | (23) | 3 | (20) | ||||||
Balance as of December 31, 2024 | 927 | (178) | 12,681 | 13,430 | 654 | 14,084 |
(1) Including share premium of NIS 313 million (as from 1992 onwards).
(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.i
+972-3-519-6224
SOURCE First International Bank of Israel
FAQ**
How did the nonrecurring losses at CAL impact the net income for the third quarter of 2025 for the First International Bank of Israel Ord FBKIF, and what would the net income be without these losses?
Considering the significant growth in customer assets and deposits, what are the strategic measures being taken by the First International Bank of Israel Ord FBKIF to maintain this momentum in 20and beyond?
What factors contributed to the decrease in the return on equity (ROE) for the third quarter of 2025, as reported by the First International Bank of Israel Ord FBKIF, compared to the same quarter last year?
With the approval of an NIS 436 million dividend distribution, how does the First International Bank of Israel Ord FBKIF plan to balance shareholder returns with ongoing growth and capital requirements during potentially challenging economic conditions?
**MWN-AI FAQ is based on asking OpenAI questions about First International Bank of Israel Ord (OTC: FBKIF).
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