-- Return on equity in Q1: 13.6% (15.1% excluding the effect of the special
tax imposed on Israeli banks this year)
-- Leumi's efficiency ratio continues to improve and remains the best in
Israel and among the best globally: stood at only 29.1% in Q1, compared
to 32.1% in the corresponding quarter last year
-- Strong growth in corporate credit -- above the average growth in the
banking system: 10.3% growth in Q1 -- an increase of 27.5% compared to
the corresponding quarter last year. This growth was driven by the
expansion of business activity in fields which are in strategic focus,
alongside support of the Israeli economy during the war
-- Responsible credit growth reflected in excellent credit quality
metrics: NPL ratio among the lowest in the banking system -- 040%, and a
low loan loss expense ratio of only 0.12%
-- Total capital return (cash dividend and share buyback) amounts to approx.
NIS 1.3 billion ($411 million) -- the highest in the banking system
-- Deposits from the public: increased by 16.5% compared to the
corresponding quarter last year
-- Robust financial indicators: CET1 ratio of 11.74%, total capital ratio of
14.07%, and liquidity coverage ratio of 117%
TEL AVIV, Israel, May 19, 2026 /PRNewswire/ -- Bank Leumi (TASE: LUMI) published today its financial statements for Q1 2026:
Net income in the first quarter of 2026 was the highest in the banking system, totaling NIS 2.35 billion ($742 million), compared to NIS 2.4 billion ($758 million) in the corresponding quarter last year. Excluding the effect of the special tax imposed on banks, net income in the first quarter amounted to NIS 2.6 billion ($821 million).
Return on equity in Q1 2026 was 13.6%, compared to 15.4% in the corresponding quarter last year. Excluding the effect of the special tax, ROE in the first quarter stood at 15.1%, and was also influenced by the Bank's strong capital surplus.
Efficiency ratio in Q1 2026 was 29.1%, compared to 32.1% in the corresponding quarter last year. Leumi's efficiency ratio remains the best in Israel and among the best globally over time, among others in light of the successful execution of its technology leadership and AI strategy in recent years.
Dividend for the first quarter of 2026 amounts to NIS 1.3 billion ($411 million), of which NIS 968 million ($306 million) is cash dividend and the remainder is share buyback. Total capital return represents 55% of the quarterly net income.
Responsible growth in the loan portfolio with a focus on strategic segments:
During the quarter, the Bank continued to focus its credit growth on the corporate, commercial and mortgage segments. In Q1, Leumi's loan portfolio grew by a higher rate than the average growth rate in the banking system: the Bank's credit portfolio increased by a total rate of 5.4% during the first quarter, with the corporate portfolio growing by 10.3%, the commercial portfolio growing by 3.1% and the mortgage portfolio growing by 2%.
Loan portfolio quality: Alongside credit growth, the Bank continues to present high-quality credit indicators. The NPL ratio remains among the lowest in the banking system, standing at only 0.40%. Loan loss expenses in Q1 2026 reflect an expense rate of 0.12% of the average outstanding loans to the public, compared to an expense rate of 0.05% in the corresponding period last year. This marks the ninth consecutive quarter in which all the provision was collective, while the specific provision recorded an income.
Deposits by the public in Q1 2026 increased by 16.5% compared to the corresponding quarter last year.
High capital adequacy: Common equity tier 1 capital ratio as at March 31, 2026 was 11.74% and total capital ratio was 14.07%.
Liquidity coverage ratio as at March 31, 2025 was 117%.
Operation "Lion's Roar": Leumi was the first bank to announce a dedicated relief program for its customers, with an emphasis on IDF soldiers and reservists, small businesses and self-employed who suffered a loss of income, as well as retail and business customers whose homes or property were damaged or who were evacuated. The Bank subsequently adopted the relief program introduced by the Bank of Israel. In addition, the Bank led significant social initiatives, including "Leumi Safe Place" for individuals aged 80+, under which the Bank funded stays in thousands of hotel rooms across Israel for elderly people lacking access to a protected space in their homes; and the "Banker at Your Doorstep" service, under which customers aged 80+ who were unable to leave their homes due to the security situation, could have requested a banker to visit their homes in order to perform essential banking transactions.
Development of Balance Sheet Items:
Shareholders' equity as at March 31, 2026 totaled NIS 68.9 billion ($21.8 billion), compared to NIS 63.8 billion ($20.2 billion) as at March 31, 2025 - an 8% increase.
Net credit to the public as at March 31, 2026 totaled NIS 547.8 billion ($173.1 billion), compared to NIS 462.8 billion ($146.2 billion) as at March 31, 2025 - an 18.4% increase.
Housing loans (mortgages) as at March 31, 2026 totaled NIS 159.8 billion ($50.5 billion), compared to NIS 148.3 billion ($46.9 billion) as at March 31, 2025 - a 7.8% increase.
Credit to retail customers as at March 31, 2026 totaled NIS 31.8 billion ($10 billion), compared to NIS 30.4 billion ($9.6 billion) as at March 31, 2025 - a 4.6% increase.
Credit to small businesses as at March 31, 2026 totaled NIS 29.3 billion ($9.3 billion), compared to NIS 27.5 billion ($8.7 billion) as at March 31, 2025 - a 6.3% increase.
Middle-market credit as at March 31, 2026 totaled NIS 71.3 billion ($22.5 billion), compared to NIS 65.6 billion ($20.7 billion) as at March 31, 2025 - an 8.7% increase.
Corporate credit as at March 31, 2026 totaled NIS 182.5 billion ($57.7 billion), compared to NIS 143.1 billion ($45.2 billion) as at March 31, 2025 - a 27.5% increase.
Deposits by the public as at March 31, 2026 totaled NIS 695 billion ($219.6 billion), compared to NIS 596.4 billion ($188.4 billion) as at March 31, 2025 - a 16.5% increase.
Deposits by retail customers as at March 31, 2026 totaled NIS 230.7 billion ($72.9 billion), compared to NIS 225.9 billion ($71.4 billion) as at March 31, 2025 - a 2.1% increase.
Deposits by small businesses as at March 31, 2026 totaled NIS 61.3 billion ($19.4 billion), compared to NIS 59 billion ($18.6 billion) as at March 31, 2025 - a 3.9% increase.
CET1 capital ratio as at March 31, 2026 was 11.74%, compared to 12.15% as at March 31, 2025.
Total capital ratio as at March 31, 2026 was 14.07%, compared to 14.83% as at March 31, 2025.
Leumi Group - Key Financials
Profit and profitability (in NIS million)
------------------------------------------------------------------------------
For the three months ended March
31 Change in %
---------------- --------------------------------- ------------ -----------
Change in
2026 2025 NIS million
---------------- --------------- ---------------- ------------ -----------
Net interest
income 3,909 4,017 (108) (2.7)
--------------- ---------------- ------------ -----------
Loan loss
expenses 166 55 111 201.8
--------------- ---------------- ------------ -----------
Non-interest
income 1,556 1,368 188 13.7
--------------- ---------------- ------------ -----------
Operating and
other expenses 1,592 1,731 (139) (8.0)
---------------- --------------- ---------------- ------------ -----------
Profit before
tax 3,707 3,599 108 3.0
--------------- ---------------- ------------ -----------
Provision for
tax 1,579 1,292 287 22.2
--------------- ---------------- ------------ -----------
Profit after tax 2,128 2,307 (179) (7.8)
--------------- ---------------- ------------ -----------
The Bank's share
in profits of
associates 218 96 122 127.1
--------------- ---------------- ------------ -----------
Net income
attributable to
the Bank's
shareholders 2,346 2,403 (57) (2.4)
--------------- ---------------- ------------ -----------
Return on equity
(%) 13.6 15.4
--------------- ---------------- ------------ -----------
Earnings per
share (NIS) 1.58 1.60
---------------- --------------- ---------------- ------------ -----------
Development of balance sheet items (in NIS million)
----------------------------------------------------------
As at March 31 Change in %
-------------------------- ----------------- -----------
2026 2025
-------------------------- -------- ------- -----------
Net loans to the public 547,780 462,847 18.4
-------------------------- -------- ------- -----------
Deposits by the public 694,961 596,447 16.5
-------------------------- -------- ------- -----------
Shareholders' equity 68,867 63,788 8.0
-------------------------- -------- ------- -----------
Total assets 903,887 763,750 18.3
-------------------------- -------- ------- -----------
Principal financial ratios (%)
----------------------------------------------------------
As at March 31
---------------------------------------- ----------------
2026 2025
---------------------------------------- ------- -------
Net loans to the public to total assets 60.6 60.6
---------------------------------------- ------- -------
Deposits by the public to total assets 76.9 78.1
---------------------------------------- ------- -------
Total equity to risk assets 14.07 14.83
---------------------------------------- ------- -------
Tier 1 capital to risk assets 11.74 12.15
------- -------
Leverage ratio 6.71 7.27
---------------------------------------- ------- -------
Liquidity coverage ratio 117 124
---------------------------------------- ------- -------
The data in this press release has been converted into US dollars solely for convenience purposes, at the representative exchange rate published by the Bank of Israel on March 31, 2026 - NIS 3.165.
Conference Call Details
A webcast and conference call for analysts and investors will be held on the same day at 5 PM (Israel); 3 PM (UK); 10 AM (EST) to discuss the results.
To access the webcast please register via the link below: BankLeumiQ1.2026-ENG
Please allow sufficient time for registration. There is no need for password or access code.
The conference call and webcast will be accompanied by a presentation, which will be published on the day of the Financial Results release on the Israeli Securities Authority reporting website (MAGNA), and on the Leumi's Investor Relations website.
An archived recording of the webcast will be available on the Leumi website one business day after the publication of results.
For more information visit the Investor Relations page on our website or contact Irit Avissar, VP, Head of Investor Relations, at investorrelations@bankleumi.co.il
The conference call and webinar does not replace the need to review the latest periodic/quarterly reports containing full information, including forward-looking information, as defined in the Israeli Securities Law, and set out in the aforementioned reports.
View original content:https://www.prnewswire.com/news-releases/bank-leumi-opens-2026-with-the-strongest-results-in-the-system--net-income-of-approx-nis-2-3-billion-742-million-and-dividend-distribution-of-nis-1-3-billion-411-million-302775697.html
SOURCE Bank Leumi
(END) Dow Jones Newswires
May 19, 2026 01:22 ET (05:22 GMT)
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