Bank Leumi (TASE: LUMI), led by CEO Hanan Friedman, today p[ublished its financial results for 2025. The bank reported net profit of NIS 10.3 billion, 5% higher than NIS 9.7 billion in 2024. In the fourth quarter, Leumi's net profit was NIS 2.5 billion, up 4% from the corresponding quarter. The increase was due to the strong performance of the economy, including exports and private consumption.
Leumi noted that it has entered the war with Iran, "In a solid financial position, with significant capital surpluses and a high level of liquidity. The bank's operations continue as usual for the benefit of its customers, while implementing the bank's business continuity plans in the best possible way. At this stage, there is no impact whatsoever on the bank's results, capital ratios or liquidity position."
Slight erosion in return on equity
In 2025, Leumi’s return on equity was 15.8%, slightly down from 16.9% in 2024. The decline stems from the fact that the bank has huge capital surpluses of NIS 10 billion but is limited in the amount of dividends it can distribute due to regulatory directives. These are "rich people's problems" and if the bank's capital surpluses are neutralized, the actual return on capital would have been 17.9%.
In the fourth quarter, the return on capital also stood at 15.1%, down from 16.2% in the corresponding quarter last year. Leumi distributed a large dividend of NIS 1.7 billion in the last quarter, of which NIS 1.3 billion will be distributed in cash and the remainder for buying back the bank's shares. The cumulative dividend distributed since the beginning of the year is NIS 5.9 billion, about 58% of annual profit.
Leumi's net interest income was NIS 16.9 billion last year, up 2.1% from 2024. The increase in interest income was due to an increase in the bank's credit portfolio. This effect was partially offset by a decline in the impact of inflation and erosion in credit and deposit spreads. The strong gains on the stock exchange was among the factors that saw Leumi collect higher fees last year of NIS 4.1 billion, up from NIS 3.8 billion in 2024.
Double-digit growth in the credit portfolio
Leumi reported double-digit growth in its credit portfolio. The portfolio grew by 14.1% last year, growth significantly higher than the strategic target set in the bank's work plan (growth of 8%-10%). When Leumi focused on providing credit to businesses, the business credit portfolio grew by 20.5%.
Leumi also recorded a very low efficiency ratio of 29.3%. The lower the figure, the more positive it is for the bank. This is an improvement over 2024, which was also low at 29.9%. The improvement was achieved due to AI. Leumi said, "Due to the accelerated implementation of an advanced AI strategy and the integration of new technologies, including in the cloud sector, Leumi's efficiency ratio has remained low over time."
Soared 66%
Bank Leumi's share price jumped 4% on Monday, on the first trading day after the start of the Iran operation." In 2025, the stock rose 66%, and since the beginning of this year it has climbed by about 12%. Bank Leumi's market cap is NIS 117 billion, making it the fourth largest company on the stock exchange in terms of market cap after Palo Alto, Teva and Elbit Systems, and the largest bank, followed by Bank Hapoalim, which trades at a market cap of NIS 107 billion.
Published by Globes, Israel business news - en.globes.co.il - on March 4, 2026.
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