Mizrahi Tefahot Reports Leading 15% Return on Equity in First Half of 2026

Mizrahi Tefahot Bank released its second-quarter 2026 financial report, confirming its position as the top performer in Israel's banking sector by return on equity (ROE). In the first half of 2026, the bank achieved a 15% ROE, the highest among Israeli banks, with a net profit of 2.6 billion shekels, slightly down from 2.74 billion shekels in the same period last year. Adjusting for the special 2026 tax framework and customer benefits under a voluntary consumer arrangement, the net profit rose to 3.03 billion shekels, pushing ROE to 17%.

In Q2 alone, Mizrahi Tefahot reported a net profit of 1.43 billion shekels and a 16% ROE, which increased to 17.7% after excluding special effects. CEO Moshe Lari highlighted the bank's strong performance despite economic and security challenges, attributing success to the professionalism and dedication of its employees. The bank also showed significant growth in business activity, with total public credit reaching approximately 423.7 billion shekels by June 30, marking a 12.5% increase year-over-year. Public deposits grew by 13.7% to about 474.4 billion shekels.

Business credit surged by 20.9% compared to the previous year’s quarter, with large business loans up 21.7% and medium-sized business loans rising 28.4%. This growth aligns with the bank’s 2025-2027 strategic plan to strengthen its role in business banking and expand its market share in public and business credit. Operational efficiency improved, with a cost-to-income ratio of 33.9% in Q2, down from 34.9% a year earlier and 35.9% in 2025 overall. Mortgage loans increased by 8.7% year-over-year, maintaining the bank’s leadership in the sector.

Mizrahi Tefahot also advanced customer service innovation by launching NFC-based cash withdrawals via mobile phones at over 200 ATMs nationwide. The board approved a dividend payout of 714 million shekels for Q2, representing 50% of quarterly profits, with total dividends for the first half of 2026 reaching approximately 1.33 billion shekels.