International Bank Profit Drops 12.6% Amid New Tax, Interest Rate Cuts

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The International Bank's quarterly profit decreased by 12.6% to NIS 581 million, impacted by a new NIS 225 million tax and lower interest rates. Despite the profit decline, the bank will distribute a NIS 254 million dividend. Credit grew by 21.9% to NIS 172.4 billion, and customer assets increased by 16.9%. CEO Eli Cohen highlighted the bank's growth and stability.

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International Bank's quarterly profit fell 12.6% to NIS 581 million due to a new tax.
A NIS 225 million tax and lower interest rates impacted the bank's revenue and profit.
Despite profit drops, the bank will distribute a NIS 254 million cash dividend.
Credit extended by the bank surged 21.9% to NIS 172.4 billion.
Customer asset portfolios grew by 16.9% to NIS 1.26 trillion.
CEO Eli Cohen described the bank as growing, stable, and maintaining high service standards.

The International Bank reported a 12.6% drop in quarterly profit, reaching NIS 581 million. This decline is partly attributed to a new tax imposed by the Ministry of Finance, amounting to NIS 225 million. The bank also cited a decrease in interest rates by the Bank of Israel as a factor affecting its revenue.

For the first nine months of the year, the bank's profit fell by 10.1% to NIS 1.57 billion, yielding a 14.3% return on equity. Despite the profit decrease, the bank plans to distribute a cash dividend of NIS 254 million. The bank estimates its expected tax payment for this item in 2026 to be between NIS 210 and 240 million annually, averaging a NIS 56 million reduction in quarterly profit.

Additional macroeconomic factors contributing to lower revenue include a decrease in the consumer price index, a reduction in the Bank of Israel's interest rate which narrowed the financial margin, and a weakening dollar against the shekel. Net revenues decreased by 4.7% to NIS 5.1 billion since the beginning of 2026.

Despite these challenges, credit growth emerged as a key driver, soaring by 21.9% to NIS 172.4 billion, primarily in financial services, with the bank also expanding into commercial credit for businesses. Public deposits saw a moderate increase of 4.6% to NIS 243.8 billion, while customer asset portfolios grew significantly by 16.9% to NIS 1.26 trillion. Commission income also rose by 6.1% to NIS 1.4 billion.

Eli Cohen, CEO of the International Bank, stated that the financial reports showcase a growing and stable bank with solid equity, high-quality assets, and a strong dividend yield. He emphasized that this growth is maintained while upholding high service standards and professionalism, continuing leadership in capital markets, money management, and innovation in investment products.