Israeli Banks See Record Advisory Fees Amid Growing Assets Under Management
Despite the influx of young retail investors and the rise of social media influencers, traditional bank investment advisory services in Israel are experiencing significant growth. Data from the Israel Securities Authority reveals that in 2025, the number of accounts managed by banks increased by 2% to approximately 337,000. The total assets under management in these accounts surged by 16% to about 485 billion shekels, marking the third consecutive year of growth. The average managed account value rose by 13% to 1.44 million shekels.
Banks continue to be the primary gateway to the capital markets for the public, with 83% of managed assets focused on Israeli securities. However, banks earn higher commission fees from the buying and selling of stocks traded internationally compared to those traded on the Tel Aviv Stock Exchange. Last year, commissions from foreign stock transactions amounted to 89 million shekels, while domestic stock transactions generated 44 million shekels. Corporate bond transactions yielded similar revenues to domestic stock trades (37.7 million shekels), whereas Israeli government bonds generated significantly less (14.7 million shekels).
Overall, banks collected 344 million shekels in commissions from advisory clients last year, a 13% increase. Additional substantial revenues came from the distribution of active mutual funds (507 million shekels) and management fees for securities accounts (553 million shekels), totaling 1.4 billion shekels in fees. Mutual funds, particularly active ones, constitute a growing portion of managed portfolios, increasing from 64% in 2021 to 72% in 2025. Money market funds, popular during periods of rising interest rates, made up 43% of the fund component in advisory portfolios last year.
The number of investment advisors working in banks has decreased to 1,068 in 2025, down from 1,360 in 2021. The Securities Authority also noted a further 10% decline in small managed accounts (under 300,000 shekels), numbering 83,000 in 2025.
