-- Efficiency ratio remains the best in Israel, standing at only 24.7% in
Q2, compared to 29.1% in the previous quarter, reflecting continued
execution of Leumi's technology leadership and AI strategy
-- Total capital return (cash dividend and share buyback) in Q2 amounts
to approx. NIS 1.4 billion ($470 million)
-- Strong growth in the loan portfolio -- an increase of 9% from the
beginning of the year, while corporate credit grew by 14% from the
beginning of the year.
-- Responsible credit growth is reflected in credit quality metrics: NPL
ratio among the lowest in the banking system -- 0.45%, and a low loan
loss expense ratio of 0.20% in Q2 and 0.17% in the first half of the 2026
-- Robust financial indicators: CET1 ratio of 11.65%, total capital ratio of
14.43% and liquidity coverage ratio of 122%
TEL AVIV, Israel, Aug. 12, 2026 /PRNewswire/ -- Bank Leumi (TASE: LUMI) published today its second quarter 2026 financial statements.
Q2 2026 Financial Highlights:
Net income amounted to NIS 2.8 billion ($940 million), compared to NIS 2.6 billion ($873 million) in the corresponding quarter last year -- an increase of 8.5%. Excluding the effect of the special tax imposed on banks, net income in the second quarter amounted to NIS 3.1 billion ($1 billion). Net income in the first half of 2026 amounted to NIS 5.2 billion ($1.7 billion). The first-half results reflect performance at the upper end of the annual profitability target, in line with the Bank's 2026 strategic plan of net income of NIS 9-11 billion.
Return on equity was 16.3%, compared to 16.2% in the corresponding quarter last year. Excluding the effect of the special tax on banks, ROE in the second quarter stood at 17.9%. ROE in the first half of 2026 was 14.9%, achieving the upper end of the return range defined in the strategic plan (the target set was an ROE of 13.75%-15.25%).
Efficiency ratio was 24.7%, compared to 26.9% in the corresponding quarter last year and compared to 29.1% in Q1 2026. 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 amounts to NIS 1.4 billion ($470 million), of which NIS 1.1 billion ($369 million) is cash dividend and the remainder is share buyback. Total capital return represents 50% of the quarterly net income, in line with the strategic target.
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 Q2, Leumi's loan portfolio increased by 3.4%. Since the beginning of the year, the credit portfolio grew by a total rate of 9%, with the corporate portfolio growing by 14%, the commercial portfolio growing by 6.5% and the mortgage portfolio growing by 4.1%. The growth rate exceeds the target set in the Bank's strategic plan (an annual growth rate of 8%-10%).
Loan portfolio quality: Alongside credit growth, the Bank continues to maintain high-quality credit indicators. The NPL ratio stands at only 0.45%. Loan loss expenses in Q2 2026 amounted to NIS 291 million ($98 million), reflecting an expense rate of 0.20% of the average outstanding loans to the public, compared to an expense rate of 0.19% in the corresponding period last year. Loan loss expenses in the first half of 2026 amounted to NIS 457 million ($153 million), reflecting an expense rate of 0.17% of the average outstanding loans to the public, compared to an expense rate of 0.12% in the corresponding period last year. This marks the tenth consecutive quarter in which all the provision was collective, while the specific provision recorded an income.
Deposits by the public increased by 3.4%, amounting to NIS 719 billion ($241 billion).
High capital adequacy: Common equity tier 1 capital ratio as at June 30, 2026 was 11.65% and total capital ratio was 14.43%.
Liquidity coverage ratio as at June 30, 2026 was 122%.
Development of Balance Sheet Items:
Shareholders' equity as at June 30, 2026 totaled NIS 70.6 billion ($23.7 billion), compared to NIS 65.5 billion ($22 billion) as at June 30, 2026 - a 7.7% increase.
Net credit to the public as at June 30, 2026 totaled NIS 566.5 billion ($190.2 billion), compared to NIS 489.2 billion ($164.3 billion) as at June 30, 2025 -- a 15.8% increase.
Housing loans (mortgages) as at June 30, 2026 totaled NIS 163.1 billion ($54.8 billion), compared to NIS 151.5 billion ($50.9 billion) as at June 30, 2025 - a 7.7% increase.
Credit to retail customers as at June 30, 2026 totaled NIS 32.4 billion ($10.9 billion), compared to NIS 30.6 billion ($10.3 billion) as at June 30, 2025 - a 5.7% increase.
Credit to small businesses as at June 30, 2026 totaled NIS 29.9 billion ($10 billion), compared to NIS 27.5 billion ($9.2 billion) as at June 30, 2025 - an 8.6% increase.
Middle-market credit as at June 30, 2026 totaled NIS 73.6 billion ($24.7 billion), compared to NIS 66.4 billion ($22.3 billion) as at June 30, 2025 - a 10.8% increase.
Corporate credit as at Jube 30, 2026 totaled NIS 188.5 billion ($63.3 billion), compared to NIS 154.5 billion ($51.9 billion) as at June 30, 2025 - a 22.1% increase.
Deposits by the public as at June 30, 2026 totaled NIS 718.9 billion ($241.4 billion), compared to NIS 642.3 billion ($215.7 billion) as at June 30, 2025 - an 11.9% increase.
Deposits by retail customers as at June 30, 2026 totaled NIS 230.3 billion ($77.3 billion), compared to NIS 227.3 billion ($76.3 billion) as at June 30, 2025 - a 1.3% increase.
Deposits by small businesses as at June 30, 2026 totaled NIS 62.3 billion ($20.9 billion), compared to NIS 60.4 billion ($20.3 billion) as at June 30, 2025 - a 3% increase.
CET1 capital ratio as at June 30, 2026 was 11.65%, compared to 12.28% as at June 30, 2025.
Total capital ratio as at June 30, 2026 was 14.43%, compared to 14.86% as at June 30, 2025.
Leumi Group - Key Financials
Profit and Profitability (in NIS millions)
------------------------------------------------------------------------------
For the three months Change in
ended June 30 NIS million Change in %
--------------------------- ---------------------- ------------ -----------
2026 2025
--------------------------- ---------- ---------- ------------ -----------
Net Interest income 4,572 4,540 32 0.7
---------- ---------- ------------ -----------
Loan loss expenses 291 223 68 30.5
---------- ---------- ------------ -----------
Non-interest income 2,016 1,446 570 39.4
---------- ---------- ------------ -----------
Operating and other
expenses 1,627 1,610 17 1.1
--------------------------- ---------- ---------- ------------ -----------
Profit before tax 4,670 4,153 517 12.4
---------- ---------- ------------ -----------
Provision for tax 1,970 1,623 347 21.4
---------- ---------- ------------ -----------
Profit after tax 2,700 2,530 170 6.7
---------- ---------- ------------ -----------
The Bank's share in profits
of associates 132 80 52 65.0
---------- ---------- ------------ -----------
Net income attributable to
the bank's shareholders 2,832 2,610 222 8.5
--------------------------- ---------- ---------- ------------ -----------
Return on equity (%) 16.3 16.2
--------------------------- ---------- ---------- ------------ -----------
Earnings per share (NIS) 1.92 1.74
--------------------------- ---------- ---------- ------------ -----------
For the six months Change in
ended June 30 NIS million Change in %
----------------------------- -------------------- ------------ -----------
2026 2025
----------------------------- --------- --------- ------------ -----------
Net Interest income 8,481 8,557 (76) (0.9)
--------- --------- ------------ -----------
Loan loss expenses 457 278 179 64.4
--------- --------- ------------ -----------
Non-interest income 3,572 2,814 758 26.9
--------- --------- ------------ -----------
Operating and other expenses 3,219 3,341 (122) (3.7)
----------------------------- --------- --------- ------------ -----------
Profit before tax 8,377 7,752 625 8.1
--------- --------- ------------ -----------
Provision for tax 3,549 2,915 634 21.7
--------- --------- ------------ -----------
Profit after tax 4,828 4,837 (9) (0.2)
--------- --------- ------------ -----------
The Bank's share in profits
of associates 350 176 174 98.9
--------- --------- ------------ -----------
Net income attributable to