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First International Bank of Israel Ltd

First International Bank of Israel Reports Financial Results for the First Quarter of 2025

Results Reflect continued growth and strong profitability while maintaining financial stability

TEL AVIV, Israel , May 14, 2025 /PRNewswire/ --First International Bank of Israel(TASE: FIBI) one of Israel's major banking groups, today announced its results for the first quarter of the year.

Financial Highlights

  • Net income of NIS 530 million in the first quarter of 2025 return on equity of  15.7%
  • Pre-tax income grew by 4.1%, compared with the same quarter in the previous year and amounted to NIS 887 million
  • Credit to the public, net, increased by 14.6% compared with the same period in the previous year and by 2% in the first quarter of the year
  • Deposits by the public, net, increased by 12.4% compared with the same period in the previous year and by 2.9% in the first quarter of the year
  • Customer's assets grew by 30% compared with the same period in the previous year and by 11.7% in the first quarter of the current year, reaching NIS 937 billion
  • Equity attributed to shareholders in the Bank amounted to NIS 13,773 million, an increase of 2.6% compared to the end of 2024.
  • The tier-1  shareholders' equity stood at  11.31%
  • The Bank's Board of Directors decided to distribute a dividend  for the first quarter of the year of NIS 212 million, representing a rate of 40% of the net income

Financial Results of the First Quarter of 2025

The First International Bank Group's net income  amounted to NIS 530 million in the first quarter of 2025, a decrease of 6.9% compared with the same quarter last year. Return on equity reached 15.7%.

Pre-tax income grew by 4.1% compared with the same quarter last year and amounted to NIS 887 million. The increase in the effective tax rate compared with the same quarter last year, was primarily as a result of income recorded from prior years reported in the comparable period last year, amounting to NIS 49 million,  and due to an increase in the special tax that is imposed on banks in Israel.

Credit to the public, net amounted to NIS 132 billion, an increase of 14.6% compared with last year and an increase of 2% in the first quarter of the year.

Deposits by the public amounted to approximately NIS 221 billion, an increase of 12.4% compared with last year and an increase of 2.9% in the first quarter.

The total customer assets portfolio increased by 30% compared with last year and by 11.7% in the first quarter of the year and  amounted to NIS 937 billion.

Equity attributed to the shareholders of the Bank increased to NIS 13.8 billion, an increase of 2.6% compared to the end of 2024. The tier 1 shareholders' equity ratio stood at 11.31% - approximately 2.1% above the equity that is required by regulation,  allowing for continued growth in the Group's activity.

Income on credit losses amounted to NIS 11 million in the first quarter of 2025, as compared with income of NIS 2 million in the same period in the previous year.

The quality of the credit portfolio  - the NPL ratio (the balance of non-accruing debts or debts that are in arrears of 90 days or more to the balance of the credit to the public) improved and reached 0.46% at the end of the first quarter, compared to 0.6%  in the same period in the previous year.

Operating and other expenses amounted to NIS 792 million, an increase of 8.3% compared with the same period in the previous year. The increase was primarily due to an increase in other expenses: capital market commisions, advertising and expenses relating to the departure of employees. The efficiency (cost income) ratio stood at 47.5%.

In light of the Supervisor of the Bank's guidance regarding "Capital planning and profits distribution policies", the Bank's Board of Directors decided to approve the distribution of a cash dividend in an amount of NIS 212 million to the shareholders, representing 40% of the net income. The Bank's Board of Directors will continue to discuss the implementation of the Bank's dividend distribution policy, pursuant to which the Bank will distribute up to 50% of the annual net income each year, in light of developments and their impact on the economy and on the Bank.

Management Comment

Eli Cohen, First International Bank's CEO commented: "We concluded a positive first quarter, continuing the growth trend that we have experienced in recent years.  The results reflect our deepening activity in the capital markets and in credit, they reflect our focus on the unique needs of our customers, and our ability to provide excellent levels of service, even during uncertain times. This was achieved while maintaining the high quality of our credit portfolio, and a strong capital base and high liquidity.

"We have continued to expand our offerings of advanced products for both private and business customers during the quarter, and we have also strengthened our innovation and digital infrastructure.

"Since April, the Bank has been offering a new package of benefits and financial relief for customers, focused on evacuees and active duty/reserve soldiers, in which the Bank is granting significant benefits, amounting to approximately NIS 130 million a year.

"I am proud of our employees, who have shown commitment, professionalism and determination in order to deliver real value to our customers. I hope for the safe return of the hostages,  the safety of the IDF soldiers and that the State of Israel will return to a path of peace and stability."      

     

CONDENSED PRINCIPAL FINANCIAL INFORMATION AND PRINCIPAL

EXECUTION INDICES







Principal financial ratios


For the three months
ended March 31,


For the year

ended

December 31,



2025


2024


2024







Percent

Principal execution indices







Return on equity attributed to shareholders of the Bank(1)

15.7

18.7

19.0

Return on average assets(1)

0.84

1.03

1.02

Ratio of equity capital tier 1

11.31

11.78

11.31

Leverage ratio

5.22

5.27

5.18

Liquidity coverage ratio(3)

146

161

165

Net stable funding ratio

131

150

140

Ratio of total income to average assets(1)

2.6

2.9

2.9

Ratio of interest income, net to average assets (1)

1.8

2.0

2.0

Ratio of fees to average assets (1)

0.7

0.7

0.7

Efficiency ratio

47.5

46.2

44.1

Credit quality indices




Ratio of provision for credit losses to credit to the public

1.22

1.38

1.25

Ratio of total provision for credit losses (2) to credit to the public

1.36

1.53

1.38

Ratio of non-accruing debts or in arrears of 90 days or more to credit to the public

0.46

0.60

0.53

Ratio of provision for credit losses to total non-accruing credit to the public

275.1

236.1

244.6

Ratio of net write-offs to average total credit to the public (1)

(0.05)

(0.02)

(0.04)

Ratio of income from credit losses to average total credit to the public (1)

(0.03)

(0.01)

(0.01)






Principal data from the statement of income


For the three months
ended March 31,




2025


2024






NIS million

Net profit attributed to shareholders of the Bank




530


569

Interest Income, net


1,154


1,115

Income from credit losses


(11)


(2)

Total non-Interest income


514


466

  Of which: Fees


425


365

Total operating and other expenses


792


731

  Of which: Salaries and related expenses


453


*447

Primary and diluted net profit per share of NIS 0.05 par value (NIS)


5.28


5.67








Principal data from the balance sheet


31.3.25


31.3.24


31.12.24







NIS million

Total assets


253,748


225,941


248,563

of which: Cash and deposits with banks

77,342

76,731

77,175

               Securities

35,946

26,375

34,396

               Credit to the public, net

132,026

115,199

129,416

Total liabilities

239,296

212,989

234,479

of which: Deposits from the public

221,051

196,615

214,755

               Deposits from banks

1,637

3,586

2,508

               Bonds and subordinated capital notes

4,458

4,736

4,479

Capital attributed to the shareholders of the Bank

13,773

12,355

13,430








Additional data


31.3.25


31.3.24


31.12.24

Share price (0.01 NIS)


18,720


15,440


17,940

Dividend per share (0.01 NIS)

227

268

986

*      Reclassified.
(1)   Annualized.
(2)   Including provision in respect of off-balance sheet credit instruments.
(3)   The ratio is computed in respect of the three months ended at the end of the reporting period.

 

CONSOLIDATED STATEMENT OF INCOME









(NIS million)













For the three months
ended March 31


For the year Ended
December 31





2025


2024


2024



(unaudited)

(unaudited)


(audited)

Interest Income




2,803


2,576


11,097

Interest Expenses


1,649

1,461

6,357

Interest Income, net


1,154

1,115

4,740

Income from credit losses


(11)

(2)

(16)

Net Interest Income after Income from credit losses


1,165

1,117

4,756

Non- Interest Income





Non-Interest financing income


88

100

432

Fees


425

365

1,553

Other income


1

1

21

Total non- Interest income


514

466

2,006

Operating and other expenses





Salaries and related expenses


453

*447

1,739

Maintenance and depreciation of premises and equipment


84

*82

359

Amortizations and impairment of intangible assets


35

31

134

Other expenses


220

171

745

Total operating and other expenses


792

731

2,977

Profit before taxes


887

852

3,785

Provision for taxes on profit


354

279

1,383

Profit after taxes


533

573

2,402

The bank's share in profit of equity-basis investee, after taxes


22

18

74

Net profit:





Before attribution to non–controlling interests


555

591

2,476

Attributed to non–controlling interests


(25)

(22)

(105)

Attributed to shareholders of the Bank


530

569

2,371














NIS

Primary profit per share attributed to the shareholders
of the Bank









Net profit per share of NIS 0.05 par value


5.28

5.67

23.63






Diluted profit per share attributed to the shareholders
of the Bank





Net profit per share of NIS 0.05 par value


5.28

5.67

23.63

*       Reclassified.

The notes to the financial statements are an integral part thereof.

 

STATEMENT OF COMPREHENSIVE INCOME







(NIS million)









For the three months
ended March 31


For the year

Ended 
December 31



2025


2024


2024



(unaudited)


(unaudited)


(audited)

Net profit before attribution to non–controlling interests


555


591


2,476

Net profit attributed to non–controlling interests

(25)

(22)

(105)

Net profit attributed to the shareholders of the Bank

530

569

2,371

Other comprehensive income (loss) before taxes:




Adjustments of available for sale bonds to fair value, net

38

(44)

31

Adjustments of liabilities in respect of employee benefits(1)

26

11

(60)

Other comprehensive income (loss) before taxes

64

(33)

(29)

Related tax effect

(24)

17

9

Other comprehensive income (loss) before attribution to non–controlling interests, after taxes

40

(16)

(20)

Less other comprehensive income attributed to non–controlling interests

-

-

3

Other comprehensive income (loss) attributed to the shareholders of the Bank, after taxes

40

(16)

(23)

Comprehensive income before attribution to non–controlling interests

595

575

2,456

Comprehensive income attributed to non–controlling interests

(25)

(22)

(108)

Comprehensive income attributed to the shareholders of the Bank

570

553

2,348

(1)   Mostly reflects adjustments in respect of actuarial assessments as of the end of the period regarding defined benefits pension plans, of amounts recorded in the past in other comprehensive income.

 

CONSOLIDATED BALANCE SHEET







(NIS million)









March 31,


December 31,



2025


2024


2024


(unaudited)

(unaudited)

(audited)

Assets







Cash and deposits with banks

77,342

76,731

77,175

Securities

35,946

26,375

34,396

Securities which were borrowed

71

2

70

Credit to the public

133,660

116,816

131,050

Provision for Credit losses

(1,634)

(1,617)

(1,634)

Credit to the public, net

132,026

115,199

129,416

Credit to the government

1,504

965

1,496

Investment in investee company

866

800

842

Premises and equipment

858

867

867

Intangible assets

356

325

363

Assets in respect of derivative instruments

3,376

3,324

2,565

Other assets(2)

1,403

1,353

1,373

Total assets

253,748

225,941

248,563

Liabilities and Shareholders' Equity




Deposits from the public

221,051

196,615

214,755

Deposits from banks

1,637

3,586

2,508

Deposits from the Government

483

710

2,540

Securities lent or sold under agreements to repurchase

3,813

-

2,304

Bonds and subordinated capital notes

4,458

4,736

4,479

Liabilities in respect of derivative instruments

3,158

3,085

2,729

Other liabilities(1)(3)

4,696

4,257

5,164

Total liabilities

239,296

212,989

234,479

Capital attributed to the shareholders of the Bank

13,773

12,355

13,430

Non-controlling interests

679

597

654

Total equity

14,452

12,952

14,084

Total liabilities and shareholders' equity

253,748

225,941

248,563

(1)   Of which: provision for credit losses in respect of off-balance sheet credit instruments in the amount of NIS 184 million and NIS 170 million and NIS 177 million as of 31.3.25, 31.3.24 and 31.12.24, respectively.
(2)   Of which: other assets measured at fair value in the amount of NIS 21 million and NIS 5 million and NIS 1 million as of 31.3.25, 31.3.24 and 31.12.24, respectively.
(3)   Of which: other liabilities measured at fair value in the amount of NIS 21 million and NIS 5 million and NIS 11 million as of 31.3.25, 31.3.24 and 31.12.24, respectively.

 

STATEMENT OF CHANGES IN EQUITY

















(NIS million)























For the three months ended March 31, 2025 (unaudited)



Share

capital and

premium

(1)


Capital

reserves from

benefit due to

share-based

payment

transactions


Total

capital and

capital reserves


Accumulated

other

comprehensive

income (loss)


Retained

earnings

(2)


Total

share-

holders'

equity


Non-

controlling 

interests


Total

equity

Balance as of December 31, 2024 (audited)

927


-


927

(178)

12,681

13,430

654

14,084

Net profit for the period

-


-


-

-

530

530

25

555

Dividend

-


-


-

-

(228)

(228)

-

(228)

Benefit due to share-based payment transactions

-


1


1

-

-

1

-

1

Other comprehensive income, after tax effect

-


-


-

40

-

40

-

40

Balance as of March 31, 2025

927


1


928

(138)

12,983

13,773

679

14,452
























For the three months ended March 31, 2024 (unaudited)







Share

capital and

 premium

(1)


Accumulated

other

comprehensive

loss


Retained

earnings

(2)


Total

share-

holders'

equity


Non-

controlling

interests


Total

equity

Balance as of December 31, 2023 (audited)





927

(155)

11,299

12,071

575

12,646

Net profit for the period





-

-

569

569

22

591

Dividend





-

-

(269)

(269)

-

(269)

Other comprehensive loss, after tax effect





-

(16)

-

(16)

-

(16)

Balance as of March 31, 2024





927

(171)

11,599

12,355

597

12,952
























For year ended December 31, 2024 (audited)







Share

capital and premium

(1)


Accumulated

other comprehensive

loss


Retained earnings

(2)


Total

share-holders' equity


Non-

controlling interests


Total equity

Balance as of December 31, 2023






927

(155)

11,299

12,071

575

12,646

Net profit for the year






-

-

2,371

2,371

105

2,476

Dividend






-

-

(989)

(989)

(29)

(1,018)

Other comprehensive income (loss), after tax effect






-

(23)

-

(23)

3

(20)

Balance as of December 31, 2024






927

(178)

12,681

13,430

654

14,084

(1)   Including share premium of NIS 313 million (as from 1992 onwards).
(2)   Including an amount of NIS 2,391 million which cannot be distributed as dividend.

 

Contact:
 Dafna Zucker
First International Bank of Israel
zucker.d@fibi.co.i
+972-3-519-6224

 

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SOURCE First International Bank of Israel