Leumi Bank Reports Record 2.83 Billion Shekel Profit with Improved Efficiency Ratio

Leumi Bank, under CEO Hanan Friedman, reported a record net profit of 2.83 billion shekels for the second quarter, marking an 8.5% increase from 2.6 billion shekels in the same period last year. The bank's return on equity rose slightly to 16.3% from 16.2% a year earlier, despite a special tax imposed earlier this year on Israel's five largest banks, which was expected to reduce profitability.

The bank's credit quality showed a slight increase in non-performing loans (NPL) to 0.45% compared to 0.43% in the second quarter of the previous year. Credit loss expenses amounted to 291 million shekels, or 0.2% of the average public credit balance, similar to 0.19% in the prior year quarter. Leumi's stock price has climbed approximately 24% over the past year, with a market capitalization of 110 billion shekels, making it the largest bank in Israel.

Significantly, Leumi's efficiency ratio improved dramatically to 24.9%, down from 29.1% in the previous quarter. This figure is considered very low on a global scale and is likely the best among Israeli banks. The strong financial results and operational improvements highlight the bank's resilience and effective management amid regulatory challenges.