Mizrahi Tefahot Reports Slight Profit Drop Despite Higher Revenues, Maintains High Dividend

Mizrahi Tefahot Bank released its financial results for the second quarter of 2026, marking the last bank to report in this period. The bank recorded revenues of 3.802 billion shekels, reflecting a 9.1% increase from the previous quarter and a slight 0.3% rise compared to the same quarter last year. Despite the revenue growth, net profit declined by 1.7% year-over-year to 1.428 billion shekels, although it rose 15% compared to the previous quarter.

The bank attributed the profit decrease primarily to a special tax imposed on bank profits, which affected the entire banking sector's profitability. Return on equity (ROE) also fell by 1.7% compared to the second quarter of 2025. Mizrahi Tefahot announced a dividend payout of 714 million shekels, representing 50% of the quarterly net profit. The controlling shareholders, brothers Dudi and Drorit Wertheim and Eyal Ofer, each holding about 21% of the bank's shares, will receive nearly 300 million shekels collectively.

Following the report, Mizrahi Tefahot's stock dropped approximately 2.3%, mirroring a 1.5% decline in the banking sector index. Over the past 12 months, the stock has risen about 10.6%, with a market capitalization near 61 billion shekels and a price-to-earnings ratio of roughly 10.9.