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TEL AVIV, Israel, Nov. 18, 2025 – Bank Leumi (TASE: LUMI) has released its financial results for the third quarter of 2025, showcasing a strong performance driven by efficiency gains and strategic loan portfolio growth.
- Efficiency Leader: Leumi boasts a remarkably low efficiency ratio of 27%, placing it among the top performers globally in the financial sector. This metric, indicating the cost-effectiveness of operations, signals a robust management strategy and optimized resource allocation.
- Strategic Loan Growth: The bank’s loan portfolio experienced responsible growth, increasing by 1.3% in the third quarter and 8.8% since the start of the year. This growth is strategically focused on the corporate, commercial, and mortgage segments, indicating a targeted approach to market opportunities.
- Asset Quality Maintained: Despite the expansion in lending, Leumi maintains exceptional loan portfolio quality, with a non-performing loan (NPL) ratio of just 0.41%, among the lowest in the Israeli banking system. This demonstrates rigorous risk management and effective credit assessment processes.
- Solid Capital and Liquidity: The bank possesses robust financial indicators, including a Tier 1 capital ratio of 12.33%, a total capital ratio of 14.87%, and a liquidity coverage ratio of 128%. These strong capital buffers provide resilience against potential economic shocks and support future growth initiatives.
Third Quarter Highlights:
Net income for Q3 2025 reached NIS 2.7 billion ($817 million), an 18% surge compared to NIS 2.3 billion ($696 million) in the same period last year. This significant increase underscores Leumi’s ability to generate strong profitability amidst evolving market conditions.
The Return on Equity (ROE) for the quarter stood at 16.3%, up from 15.5% in Q3 2024. This metric reflects the bank’s effectiveness in utilizing shareholder investments to create profit.
Leumi’s efficiency ratio improved substantially to 27% in Q3 2025, compared to 31.1% in the corresponding period last year. This improvement highlights the bank’s ongoing efforts to streamline operations and control expenses.
A dividend of NIS 2 billion ($605 million) was declared for Q3 2025, comprising approximately NIS 1.5 billion ($454 million) in cash dividend and a share buyback program of up to NIS 500 million ($151 million). This distribution represents 75% of the net income for the quarter, demonstrating a commitment to returning value to shareholders. The share buyback program could potentially improve key metrics like earnings per share.
Strategic Lending and Loan Quality:
Leumi is prioritizing growth in its credit portfolio within strategic segments, specifically targeting corporate, commercial, and mortgage lending. The credit portfolio expanded by 1.3% in Q3 2025. Year-to-date, the portfolio has grown by 8.8%, with notable growth in the corporate (15.7%), commercial (3.4%), and mortgage portfolios (5.1%). This diversified growth strategy reduces risk by spreading lending across various sectors.
The bank’s commitment to maintaining a high-quality loan portfolio is evident in its low NPL ratio of 0.41%. Loan loss expenses in Q3 2025 reflect an expense rate of 0.03% of the average outstanding loans to the public, a significant decrease from 0.28% in the corresponding period last year. This suggests improved credit risk assessment and a healthier economic environment for borrowers.
Capital Adequacy and Liquidity:
As of September 30, 2025, Leumi’s Common Equity Tier 1 (CET1) capital ratio was 12.33%, and the total capital ratio was 14.87%. These ratios are well above regulatory requirements, providing a strong foundation for future growth and the ability to absorb unexpected losses.
The liquidity coverage ratio (LCR) as of September 30, 2025, stood at 128%. This high LCR indicates Leumi’s capacity to meet its short-term obligations, ensuring financial stability and resilience in adverse market scenarios.
Community Support Initiatives:
Bank Leumi has implemented several initiatives to support the public and its customers, including benefits for IDF soldiers and reservists, households affected by property damage and evacuation, and business owners. These initiatives are part of Leumi’s broader relief program, offering financial assistance to business and retail customers across Israel.
Financial relief measures include reimbursement for IDF reserve soldiers, a decrease in the prime lending rate for customers with loans or mortgages, grants to eligible customers, interest on positive current account balances, and reductions or exemptions from interest charges on overdrafts. Leumi has also made substantial donations to residents in affected areas, IDF soldiers, hospitals, and aid organizations. The total cost of these Q3 2025 relief efforts is estimated at NIS 172 million ($52 million).
Balance Sheet Growth:
As of September 30, 2025, shareholders’ equity totaled NIS 67 billion ($20.3 billion), an 11.3% increase compared to NIS 60.3 billion ($18.2 billion) on September 30, 2024. Net credit to the public reached NIS 495.4 billion ($149.8 billion), a 10.8% increase from NIS 447 billion ($135.2 billion) on September 30, 2024. Deposits by the public totaled NIS 641.1 billion ($193.9 billion), up 9% from NIS 588.3 billion ($177.9 billion) on September 30, 2024.
Leumi Group – Key Financials
Profit and Profitability (in NIS millions)
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|
|
|||
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Net Interest income |
|
4,545 |
(74) |
(1.6) |
|
Loan loss expenses |
|
312 |
(280) |
(89.7) |
|
Non-interest income |
|
978 |
512 |
52.4 |
|
Operating and other expenses |
|
1,716 |
(107) |
(6.2) |
|
Profit before tax |
|
3,495 |
(825) |
23.6 |
|
Provision for tax |
|
1,285 |
434 |
33.8 |
|
Profit after tax |
|
2,210 |
391 |
17.7 |
|
The Bank’s share in profits of associates |
|
83 |
16 |
19.3 |
|
Net income attributable to the bank’s shareholders |
|
2,293 |
407 |
17.7 |
|
Return on equity (%) |
|
15.5 |
||
|
Earnings per share (NIS) |
|
1.51 |
||
|
|
|
|
||
|
|
|
|||
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Net Interest income |
|
12,690 |
338 |
2.7 |
|
Loan loss expenses |
|
516 |
(206) |
(39.9) |
|
Non-interest income |
|
4,871 |
(567) |
(11.6) |
|
Operating and other expenses |
|
5,192 |
(242) |
(4.7) |
|
Profit before tax |
|
11,853 |
219 |
1.8 |
|
Provision for tax |
|
4,128 |
506 |
12.3 |
|
Profit after tax |
|
7,725 |
(287) |
(3.7) |
|
The Bank’s share in profits (losses) of associates |
|
(378) |
653 |
– |
|
Net income attributable to the bank’s shareholders |
|
7,347 |
366 |
|
