Discount Bank Reports 1.2 Billion Shekel Quarterly Profit Amid Planned 600-Job Cuts

Discount Bank announced a net profit of 1.2 billion shekels for the second quarter of 2026, achieving a 14% return on equity. The bank plans to distribute 481 million shekels to shareholders and intends to reduce its workforce by approximately 600 employees during 2026. Adjusting for a special tax imposed on the banking sector this year, the quarterly profit would have been 1.32 billion shekels with a 15.4% return on equity.

For the first half of 2026, Discount Bank earned 2.13 billion shekels, maintaining nearly the same level as the previous year. The bank's credit portfolio continued to grow, reaching about 304 billion shekels by the end of June. This represents a 5.4% increase since the start of the year and a 9.8% rise over the past twelve months. Large business credit grew by 12.3%, mortgages by 4.6%, and non-housing household credit by 3.6%.

Investor sentiment remains positive, with the banking sector index rising 2.48% yesterday and an additional 0.82% this morning, totaling over a 3% increase in two trading days. Among the five largest banking groups, only Mizrahi Tefahot has yet to report its second-quarter results, which will complete the sector's financial picture. Despite the special tax, Israeli banks continue to generate multi-billion shekel profits, deliver double-digit returns on equity, and distribute significant dividends to shareholders.