Full Breakdown
Bank Leumi Reports Record Q2 Profit, Boosts Efficiency and Announces Computing Merger
8/14/2026, 8:46:23 PM
Record Profit and Efficiency Gains
Bank Leumi announced a net profit of NIS 2.83 billion for the second quarter of 2026, an 8.5% increase over the same period a year earlier. The profit translated into a return on equity of 16.3%, the highest among Israeli banks. A key efficiency metric—operating expenses divided by operating income—fell to a global-standard low of 24.7%, down from 29.1% in the prior quarter.
Credit Expansion and Deposit Growth
Leumi’s credit to the public rose 15.8% to NIS 566.5 billion, while overall credit to the public jumped 20.1% to NIS 164.2 billion. The customer-asset portfolio expanded 20.8% to NIS 1.23 trillion, and total deposits grew 3.4% to NIS 719 billion, including a 1.3% increase in private-customer deposits. Public deposits rose 11.7% to NIS 251.4 billion. The bank maintained a low loss-expense ratio on its credit portfolio, supporting higher financing profits and one-off income from subsidiaries.
Dividend and Shareholder Returns
Bank Leumi disclosed a dividend and share-buyback program totaling NIS 1.4 billion. The payout is intended to return value to shareholders following the strong earnings and efficiency performance.
MATAF Merger and Operational Streamlining
The board approved the merger of its subsidiary MATAF, which centralizes the bank’s computing operations and employs roughly 500 workers. The move, announced amid an “exhausting labor dispute,” aims to streamline systems and advance future computing initiatives.
These developments position Bank Leumi as a leading performer in Israel’s banking sector, combining robust profitability, aggressive credit growth, and a strategic push toward consolidated technology operations.
