Israeli Banks Post Massive 8.5 Billion Shekel Quarterly Profits Despite Special Tax

Israeli banks reported substantial profits in the latest quarter, collectively earning over 8.5 billion shekels despite the impact of a special tax and declining interest rates. Mizrahi Tefahot Bank closed the earnings season with a net profit of 1.43 billion shekels and declared dividends totaling 714 million shekels. The five largest banks in Israel continue to show strong financial performance, including double-digit returns on equity and rapid credit growth, while distributing significant portions of their profits to shareholders.

Meanwhile, Bank Jerusalem faced a recent scare when initial investigations found no irregularities in its funds or customer assets after a drop in its stock price. The bank's shares fell and trading was suspended for a period. However, two missing individuals connected to the case were located in Argentina over the weekend, which has brought renewed attention to the stock as trading resumes.

Overall, despite challenges posed by the special tax and lower interest rates, Israel's major banks maintain robust profitability and growth, underscoring their resilience in the current economic environment.