Bank One Zero Cuts First-Half Loss by 27% to 84 Million Shekels Amid Growth

Bank One Zero reported a 27% reduction in its net loss for the first half of 2026, narrowing it to 84 million shekels. The digital bank, founded by Mobileye co-founder Amnon Shashua and licensed in 2019, has benefited from regulatory easing but will now report financials semiannually, moving to quarterly reports by 2028. The bank expects to close 2026 with a total loss of approximately 130 million shekels, a significant improvement from losses of 214 million in 2025, 268 million in 2024, and 357 million in 2023, its first full year of operation.

CEO Eyal Gafni highlighted that the bank is nearing a break-even point and anticipates its first profitable month within a few months, driven by revenue growth and cost reductions. Revenues surged 33% to 66 million shekels in the half-year, with securities trading income rising 55% and accounting for about 30% of second-quarter revenues. The number of customers holding securities doubled, and trading portfolios increased by 151%. The bank's total customer base reached 193,000 by mid-2026, growing to 200,000 by the report date, up from 180,000 at the end of 2025 and 100,000 in March 2024.

Approximately 77% of customers are active monthly, and half subscribe to premium plans requiring fees or monthly deposits of at least 5,000 shekels. Credit card purchase volumes rose 36% compared to the previous year. Despite increased activity, operating expenses fell 10% to 149 million shekels due to technological efficiencies, AI adoption, and reduced outsourcing. Assets under management grew to 6.5 billion shekels, and deposits increased 20% to 3.8 billion shekels. The bank maintains a conservative credit and liquidity policy, with a loan portfolio of 500 million shekels, about 13% of deposits, while holding 85% of deposits in liquid, risk-free Bank of Israel deposits.