Company Announcements

• Responsible growth in the loan portfolio: an increase of 14.1% in 2025 – significantly higher than the set strategic target (an increase of 8%-10%). The corporate portfolio grew by 20.5%, with a leap in national infrastructure
• The growth in the loan portfolio was achieved while improving credit quality indicators: NPL ratio is among the lowest in the banking system – 0.40%, and loan loss expense rate of only 0.09% in 2025
• Total capital return (cash dividend and share buyback) for 2025 amounted to NIS 5.9 billion ($1.9 billion) – which constitutes 58% of the annual net income – above the set strategic target (at least 50% of the net income).
• Due to the accelerated implementation of an advanced AI strategy and the integration of new technologies, including in the cloud sphere, Leumi's efficiency ratio remains low over time and is one of the best in the global financial system: 29.3%
• Robust financial indicators: Common equity tier 1 capital ratio of 12.05%, total capital ratio of 14.08% and liquidity coverage ratio of 127%
• Operation "Lion's Roar": Bank Leumi has entered the operation in a solid financial position, with significant capital surplus and a high level of liquidity. At this stage no impact is expected on the bank's results

TEL AVIV, Israel , March 4, 2026 /PRNewswire/ -- Bank Leumi (TASE: LUMI) published today its financial statements for 2025:

Net income in 2025 amounted to NIS 10.3 billion ($3.2 billion), compared to NIS 9.8 billion ($3.1 billion) in 2024. Net income in Q4 2025 amounted to NIS 2.55 billion ($799 million), compared to NIS 2.45 billion ($768 million) in the corresponding period last year.

Return on equity in 2025 was 15.8%, compared with 16.9% in 2024. ROE in Q4 2025 was 15.1%, compared with 16.2% in the corresponding period last year. Although the net income is higher than last year, the ROE is slightly lower due to the bank's capital surplus, which stands at approximately NIS 10 billion ($3.1 billion).

The efficiency ratio in 2025 was 29.3%, compared with 29.9% in 2024. The efficiency ratio in Q4 2024 was 31.8%, compared with 30.9% in the corresponding period last year. Leumi's efficiency ratio remains low over time, among others, due to the accelerated implementation of the AI strategy adopted by the bank, and thanks to the implementation of new technologies, including in the cloud sphere.

Dividend in Q4 2025 amounts to NIS 1.657 billion ($519 million), out of which NIS 1.275 billion ($0.4 billion) is cash dividend and the remainder is share buyback of NIS 382 million ($120 million) – which constitutes 65% of the net income for the quarter. Total dividend from the beginning of the year, including share buyback, amounts to NIS 5.9 billion ($1.9 billion), out of which NIS 4.5 billion ($1.4 billion) is cash dividend and the remainder is share buyback - which constitute 58% of the annual net income.

Responsible growth in the loan portfolio in strategic segments: The Bank continues to focus its growth in the credit portfolio in the corporate, commercial and mortgage segments. In 2025, the credit portfolio grew by a total rate of 14.1%, with the corporate portfolio growing by 20.5%, the commercial portfolio growing by 6.2% and the mortgage portfolio growing by 6.9%.

Loan portfolio quality: Alongside the growth in the loan portfolio, the Bank continues to present high-quality credit indicators. The NPL ratio continues to be among the lowest in the banking system, standing at 0.40% only, compared with 0.50% at the end of 2024. Loan loss expenses in 2025 reflect an expense rate of 0.09% of the average outstanding loans to the public, compared to an expense rate of 0.16% in the corresponding period last year.

High capital adequacy: Common equity tier 1 capital ratio as at December 31, 2025 was 12.05% and total capital ratio was 14.08%.

Liquidity coverage ratio as at December 31, 2025 was 127%.

Strategic targets: As mentioned, Leumi met all of the strategic financial goals set for 2025 – and in some parameters even overpassed them. The financial goals will remain high also in 2026-2027, despite the continued expected decline in the interest rate and the moderation in inflation.

Financial targets for the years 2026-2027:

• Annual net income: NIS 10-12 billion ($3.1 - $3.8 billion)
• Return on equity: 14.5%-16% each year
• Dividend: 50%-65% of the net income each year (including share buyback)
• Loan portfolio growth: 8%-10% each year

The Bank's initiatives due to the war: The Bank implemented many initiatives for the benefit of the general public and its customers, including a series of unique benefits for IDF soldiers and reservists, households whose homes or properties have been damaged and have been evacuated, business owners and self-employed.

These initiatives are part of Leumi's policy to expand the Bank of Israel's relief program, publishing its own comprehensive relief program (in several stages) to business and retail customers from across Israel in 2025.

Financial relief to eligible customers included, among others: A NIS 3,000 reimbursement of IDF reserve soldiers, A 0.25% decrease in the prime lending rate for customers with loans or mortgages, a NIS 500 grant to hundreds of thousands of eligible customers, providing interest on a positive balance in the current account, reduction or exemption from interest charges on a negative balance in the current account (overdraft) and more, exemption from foreign exchange fees when converting dollars, and more.

In addition, since the outbreak of the war, the Bank made substantial donations for the benefit of residents of the confrontation lines, IDF soldiers - both on active and reserve duty, hospitals and first responder and aid organizations.

The total cost of relief in Q4 2025 is estimated at NIS 58 million ($18 million). The total cost of relief in 2025 amounted to NIS 355 million ($111 million).

Operation "Lion's Roar": On February 28, 2026, the Israeli-US operation against Iran began. To the extent that the operation will significantly reduce the threat to Israel, it is expected to have positive implications on the growth potential of Israel's economy. Leumi entered the operation in a solid financial position, with significant capital surplus and a high level of liquidity. The bank's operations continue as usual for the benefit of its customers, while optimally implementing the bank's business continuity plans. At this stage there is no impact on the bank's results, capital ratios or liquidity level. Leumi was the first bank to publish a comprehensive relief program for its retail and business customers and initiated a social project, under which the bank finances staying in hotels with safe and accessible areas for the elderly who do not have access to a protected space at their homes.

Development of Balance Sheet Items:

Shareholders' equity as at December 31, 2025 totaled NIS 68.1 billion ($21.3 billion), compared to NIS 61.6 billion ($19.3 billion) as at December 31, 2024 - a 10.5% increase.

Net credit to the public as at December 31, 2025 totaled NIS 520 billion ($163 billion), compared to NIS 455.5 billion ($142.8 billion) as at December 31, 2024 - a 14.1% increase.

Housing loans (mortgages) as at December 31, 2025 totaled NIS 156.7 billion ($49.1 billion), compared to NIS 146.6 billion ($46 billion) as at December 31, 2024 - an 6.9% increase.

Credit to retail customers as at December 31, 2025 totaled NIS 31.8 billion ($10 billion), compared to NIS 30.6 billion ($9.6 billion) as at December 31, 2024 - a 4.1% increase.

Credit to small businesses as at December 31, 2025 totaled NIS 29.1 billion ($9.1 billion), compared to NIS 27.6 billion ($8.7 billion) as at December 31, 2024 - a 5.4% increase.

Middle-market credit as at December 31, 2025 totaled NIS 69.1 billion ($21.7 billion), compared to NIS 65.1 billion ($20.4 billion) as at December 31, 2024 - a 6.2% increase.

Corporate credit (including real estate) as at December 31, 2025 totaled NIS 165.4 billion ($51.8 billion), compared to NIS 137.3 billion ($42.9 billion) as at December 31, 2024 - a 20.5% increase.

Deposits by the public as at December 31, 2025 totaled NIS 686.9 billion ($215.3 billion), compared to NIS 618.3 billion ($193.8 billion) as at December 31, 2024 - an 11.1% increase.

Deposits by retail customers as at December 31, 2025 totaled NIS 227 billion ($71.2 billion), compared to NIS 225.8 billion ($70.8 billion) as at December 31, 2024 - a 0.5% increase.

Deposits by small businesses as at December 31, 2025 totaled NIS 63.1 billion ($19.8 billion), compared to NIS 61.2 billion ($19.2 billion) as at December 31, 2024 – a 3.2% increase.

CET1 capital ratio as at December 31, 2025 was 12.05%, compared to 12.17% as at December 31, 2024.

Total capital ratio as at December 31, 2025 was 14.08%, compared to 14.83% as at December 31, 2024.

 

 

 

 

The data in this press release has been converted into US dollars solely for convenience purposes, at the representative exchange rate published by the Bank of Israel on December 31, 2025, NIS 3.19.

Conference Call Details

A webcast and conference call for analysts and investors will be held on the same day at 5 PM (Israel); 3 PM (UK); 10 AM (EST) to discuss the results.

To access the webcast please register via the link below:

BankLeumiQ4.2025-ENG

Please allow sufficient time for registration. There is no need for password or access code.

The conference call and webcast will make use of a presentation which will be published on the day of the publication of the Financial Results on the Israeli Securities Authority reporting website (MAGNA) and on the Leumi website under Investor Relations.

An archived recording of the webcast will be available on the Leumi website one business day after the publication of results.

For more information visit the Investor Relations page on our website or contact Irit Avissar, VP, Head of Investor Relations, at investorrelations@bankleumi.co.il

The conference call and webinar does not replace the need to review the latest periodic/quarterly reports containing full information, including forward-looking information, as defined in the Israeli Securities Law, and set out in the aforementioned reports.

 

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SOURCE Bank Leumi