International Bank Reports 22% Credit Growth Amid Profit Decline

The International Bank released its third-quarter financial reports for 2026, revealing a dual trend of rapid business expansion alongside a decrease in profitability. Net profit for the quarter stood at NIS 508 million, a 12.6% drop from NIS 581 million in the same period last year. For the first nine months of the year, net profit was NIS 1.57 billion, down 10.1% year-over-year. The bank's stock, valued at approximately NIS 23.85 billion, has seen a 3.89% increase in the past week and 8.49% in the last month, though it has declined 5.07% since the beginning of the year.

A significant highlight in the reports is the accelerated growth in the bank's credit portfolio, which reached NIS 172.4 billion, a 21.9% increase over the year and 5% within the quarter, primarily driven by credit to the financial services sector. Customer assets under management also grew by 16.9% annually to NIS 1.26 trillion, and commission income rose 6.1% to NIS 1.4 billion in the first nine months. However, these operational gains were insufficient to offset the impact of interest rate changes, inflation, and exchange rate fluctuations. Total net income for the first nine months fell by 4.7% to NIS 5.09 billion, while operating expenses increased by 2%.

Despite the rapid credit expansion, the bank's credit quality improved, with the rate of non-accrual or past-due loans (90 days or more) decreasing to 0.37% from 0.46% at the end of 2025. The board approved a dividend distribution of NIS 254 million, half of the quarterly net profit, resulting in a dividend yield of 7.3% as of the end of September.

Eli Cohen, CEO of the International Bank, described the period as "challenging" due to economic uncertainty and geopolitical risks, but emphasized the bank's financial resilience and double-digit growth in credit and customer assets.