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TEL AVIV, Israel – First International Bank of Israel (FIBI), traded on the TASE under the ticker FIBI, has announced its financial results for the third quarter of 2025, showcasing what the bank describes as accelerated growth and sustained profitability, despite some one-time losses. The bank’s statements point to underlying financial strength in a challenging global economic environment.
Financial Performance at a Glance
- Net income for the first nine months of 2025 reached NIS 1,748 million, translating to a Return on Equity (ROE) of 16.9%.
- For Q3 2025, net income stood at NIS 581 million, with an ROE of 16.2%. However, Q3 results were impacted by nonrecurring losses at CAL. Excluding these, net income would have been NIS 624 million, with an ROE of 17.4%. This adjustment provides a clearer picture of FIBI’s core banking performance.
- The bank’s revenue streams are expanding, which is a key driver in bank sector. Total revenues for the first nine months saw a 6% increase year-over-year. Fee income also showed robust growth, climbing 17.5% to NIS 1,320 million for the first nine months and rising 16.4% in Q3 compared to the same period last year.
- Customer assets demonstrated significant growth, increasing by 34.4% from the prior-year period and by 5.8% in Q3, reaching a substantial NIS 1.074 trillion.
- Loan growth continued, with gross credit to the public increasing by 11.9% year-over-year, and by 3.4% in the third quarter. Deposits from the public also grew, up 9.4% from the prior-year period and up 3.5% in the third quarter.
- Equity attributable to the Bank’s shareholders reached NIS 14,543 million, an 11.3% increase from the prior-year period, which shows capital appreciation.
- FIBI’s Tier 1 capital ratio stands at 11.39%, exceeds the regulatory requirement by a comfortable 2.16%. This robust capital adequacy provides financial flexibility for future growth and protects against unexpected economic downturn.
- Reflecting the bank’s earnings performance and confidence in its financial position, the Board of Directors has approved a dividend distribution of NIS 436 million. This represents 50% of the net income for Q3, supplemented by an additional amount from existing distributable profits.
Third Quarter and Nine Month 2025 Results Summary
Despite a slight dip of 2.8% year-over-year, the FIBI Group’s net income for the first nine months of 2025 totaled NIS 1,748 million, ROE reached 16.9%. For Q3 2025, net income totaled NIS 581 million, 6.3% lower than the same quarter last year. ROE reached 16.2%. Adjusting for nonrecurring losses at CAL, net income for Q3 totaled NIS 624 million, with a stronger 17.4% ROE. Investors are likely to scrutinize the performance of CAL and assess the likelihood of similar non-recurring losses in future periods.
Total revenues for the first nine months of 2025 rose 6% year-over-year, which totaled NIS 5,337 million. Fee income also outpaced the prior-year period, climbing 17.5% to NIS 1,320 million for the first nine months of the year. Q3 saw a 16.4% increase in fee income, compared to the same quarter last year.
The bank’s lending portfolio continued to expand, gross credit to the public totaled NIS 141.4 billion, up 11.9% from the prior-year period and 3.4% from Q2. Deposits from the public increased to NIS 233 billion, up 9.4% from the prior-year period and 3.5% from Q2. Total customer asset portfolio reached NIS 1.074 trillion, up 34.4% from the prior-year period and 5.8% from Q2.
The equity attributable to the Bank’s shareholders increased to NIS 14,543 million, reflecting an 11.3% growth rate year-over-year. With a Tier 1 capital ratio of 11.39%, exceeding regulatory requirements by 2.16%, FIBI asserts it is well-positioned for sustained growth.
FIBI’s loan portfolio maintaining high credit quality, the non-performing loan (NPL) ratio stands at 0.46%, improving from 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 nine-month period and 43.7% for Q3 2025.
The provision for income taxes for the first nine months increased to NIS 1,157 million, compared to NIS 1,033 million for the prior-year period. The effective tax rate was 39.0%, compared to 36.3% for the prior-year period, primarily due to income adjustments related to previous years. The Bank’s Board approved a cash dividend distribution of NIS 436 million to shareholders, 50% of Q3 net income and some distributable income. Given the economic uncertainties, the Board will continue to monitor economic conditions and reassess its dividend policy accordingly.
Management Commentary
Eli Cohen, CEO of the First International Bank of Israel, said the Q3 results reflect resilience and strength of FIBI. Deposits and customer assets now exceed NIS 1 trillion, and asserted that its loan portfolio is growing while maintaining credit quality and a balanced risk profile.
“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.”
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 |
||||||||||
