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# First International Bank of Israel's third-quarter profit falls 12.6% to NIS 508 million as lending grows 21.9%
- URL: https://www.theglobalbanker.com/first-international-bank-of-israels-third-quarter-profit-falls-12-6-to-nis-508-million-as-lending-grows-21-9/
- Published: 2026-11-11T14:13:16.000Z
- Updated: 2026-11-11T14:13:16.000Z
- Description: First International Bank of Israel earned NIS 508 million in the third quarter, down from NIS 581 million a year earlier, for a return on equity of 13.8%, or 15.3% before the special tax levy.
- Author: TGB Editorial Team
- Tags: Banking News, MENA, #newsroom, #needs-photo

[First International Bank of Israel](https://www.theglobalbanker.com/rankings-mena/) reported net income of NIS 508 million for the third quarter of 2026, a decrease of 12.6% from NIS 581 million in the same quarter last year. Its return on equity was 13.8% in the quarter, and 15.3% once the special tax levy is eliminated, the bank said.

For the first nine months of 2026, net income came to NIS 1,571 million, 10.1% lower than the NIS 1,748 million earned a year earlier. Return on equity for the period was 14.3%, or 15.9% excluding the levy.

## LENDING OUTPACES DEPOSITS

Credit to the public rose 21.9% year on year to NIS 172.4 billion, and by 5.0% on the second quarter, with the increase coming from credit for financial services. Deposits from the public grew more slowly, up 4.6% to about NIS 243.8 billion.

Total net revenues for the nine months fell 4.7% to NIS 5,085 million. The bank put the decline down to macro factors such as the index, interest rates and exchange rates, despite growth in activity. Income from commissions rose 6.1% to NIS 1,400 million.

Credit quality improved. The ratio of non-accruing debts or debts 90 days or more in arrears fell to 0.37%, from 0.46% at the end of 2025\. The efficiency ratio was 48.1% in the third quarter and 47.8% for the nine months.

## A SPECIAL TAX ON BANKS

Israel's Finance Ministry announced that a special tax would be imposed on the country's banks after they reported substantial profits. On the recommendation of a government inter-ministerial committee, Finance Minister Bezalel Smotrich decided to apply a 15% tax on a bank's profits that exceed 50% of its average profits between 2018 and 2022, set to take effect in early 2026 and remain in place for five years, subject to parliamentary approval.

For the bank, the third quarter was weaker than the second, when net income was NIS 583 million, an increase of 21.5% from NIS 480 million in the first quarter, and return on equity reached 16.0%. Net income in the second quarter was also 8.5% lower than a year earlier, at NIS 583 million against NIS 637 million.

## CAPITAL AND DIVIDEND

The Tier 1 shareholders' equity ratio stood at 10.28%, which the bank said leaves a gap of 1% above the required regulatory level. The board approved a cash dividend of NIS 254 million, 50% of the quarter's net income, and the bank put its dividend yield at 7.3% as at 30 September 2026.

Eli Cohen, the bank's chief executive, said the bank was in "a challenging period of uncertainty, macro-economic changes and geopolitical risks".

## THE TGB VIEW

First International Bank of Israel ranks 19th in its regional table of the TGB Bank Rankings, with a return on equity of 15.5% for 2025, higher than Bank Leumi's 15.1% but lower than Mizrahi Tefahot's 16.2%. Before the levy, the quarter's 15.3% return is close to that 2025 level, while the reported 13.8% falls short of it. Watch Bank Leumi's third-quarter results on 17 November 2026 for a direct comparison with a larger peer.