Bank Leumi Reports Record Quarterly Profit of NIS 2.83 Billion Amid Operational Efficiency Gains

Bank Leumi announced a record quarterly profit of 2.83 billion shekels for the second quarter of 2026, contributing to a 3.6% increase in half-year profits to 5.18 billion shekels. This growth makes Leumi the only Israeli bank to increase profits in the first half of 2026. A standout metric was the bank's efficiency ratio, which dropped to a global low of 24.7% in Q2 from 29.1% in the previous quarter, attributed to strategic implementation of technological leadership and artificial intelligence.

The bank also reported a 15.8% rise in net public credit, reaching 566.5 billion shekels, while maintaining low credit loss expenses. These factors, combined with one-time income from subsidiaries, significantly boosted financing profits. Leumi plans to distribute dividends totaling 1.4 billion shekels, including share buybacks.

Meanwhile, Bank Hapoalim saw a 21.5% jump in Q2 profits to 583 million shekels, yielding a 16% return on equity of 14.9 billion shekels. However, its half-year profit declined 8.9% to 1.06 billion shekels. The bank's board approved a dividend payout of 558 million shekels, about 96% of Q2 net profit. Public credit surged 20.1% to 164.2 billion shekels, customer asset portfolios grew 20.8% to 1.23 trillion shekels, and public deposits increased 11.7% to 251.4 billion shekels. Net revenues for the first half fell 2.5% to 3.449 billion shekels, mainly due to macroeconomic factors.

A significant development from Bank Hapoalim’s report was the board’s decision to merge its subsidiary Mat'af, which handles the bank's computing operations and employs 500 workers. This move, decided amid a protracted labor dispute, aims to streamline systems and advance future IT initiatives.