Leumi's efficiency ratio continues to improve and remains the best in Israel and among the best globally: stood at only 29.1% in Q1, compared to 32.1% in the corresponding quarter last year
Strong growth in corporate credit, above the average growth in the banking system: 10.3% growth in Q1, an increase of 27.5% compared to the corresponding quarter last year. This growth was driven by the expansion of business activity in fields which are in strategic focus, alongside support of the Israeli economy during the war
Responsible credit growth reflected in excellent credit quality metrics: NPL ratio among the lowest in the banking system, 040%, and a low loan loss expense ratio of only 0.12%
Total capital return (cash dividend and share buyback) amounts to approx. NIS 1.3 billion ($411 million), the highest in the banking system
Deposits from the public: increased by 16.5% compared to the corresponding quarter last year
Robust financial indicators: CET1 ratio of 11.74%, total capital ratio of 14.07%, and liquidity coverage ratio of 117%
TEL AVIV, Israel, May 19, 2026 /PRNewswire/ -- Bank Leumi (TASE: LUMI) published today its financial statements for Q1 2026:
Net income in the first quarter of 2026 was the highest in the banking system, totaling NIS 2.35 billion ($742 million), compared to NIS 2.4 billion ($758 million) in the corresponding quarter last year. Excluding the effect of the special tax imposed on banks, net income in the first quarter amounted to NIS 2.6 billion ($821 million).
Return on equity in Q1 2026 was 13.6%, compared to 15.4% in the corresponding quarter last year. Excluding the effect of the special tax, ROE in the first quarter stood at 15.1%, and was also influenced by the Bank's strong capital surplus.
Efficiency ratio in Q1 2026 was 29.1%, compared to 32.1% in the corresponding quarter last year. Leumi's efficiency ratio remains the best in Israel and among the best globally over time, among others in light of the successful execution of its technology leadership and AI strategy in recent years.
Dividend for the first quarter of 2026 amounts to NIS 1.3 billion ($411 million), of which NIS 968 million ($306 million) is cash dividend and the remainder is share buyback. Total capital return represents 55% of the quarterly net income.
Responsible growth in the loan portfolio with a focus on strategic segments:
During the quarter, the Bank continued to focus its credit growth on the corporate, commercial and mortgage segments. In Q1, Leumi's loan portfolio grew by a higher rate than the average growth rate in the banking system: the Bank's credit portfolio increased by a total rate of 5.4% during the first quarter, with the corporate portfolio growing by 10.3%, the commercial portfolio growing by 3.1% and the mortgage portfolio growing by 2%.
Loan portfolio quality: Alongside credit growth, the Bank continues to present high-quality credit indicators. The NPL ratio remains among the lowest in the banking system, standing at only 0.40%. Loan loss expenses in Q1 2026 reflect an expense rate of 0.12% of the average outstanding loans to the public, compared to an expense rate of 0.05% in the corresponding period last year. This marks the ninth consecutive quarter in which all the provision was collective, while the specific provision recorded an income.
Deposits by the public in Q1 2026 increased by 16.5% compared to the corresponding quarter last year.
High capital adequacy: Common equity tier 1 capital ratio as at March 31, 2026 was 11.74% and total capital ratio was 14.07%.
Liquidity coverage ratio as at March 31, 2025 was 117%.
Operation "Lion's Roar": Leumi was the first bank to announce a dedicated relief program for its customers, with an emphasis on IDF soldiers and reservists, small businesses and self-employed who suffered a loss of income, as well as retail and business customers whose homes or property were damaged or who were evacuated. The Bank subsequently adopted the relief program introduced by the Bank of Israel. In addition, the Bank led significant social initiatives, including "Leumi Safe Place" for individuals aged 80+, under which the Bank funded stays in thousands of hotel rooms across Israel for elderly people lacking access to a protected space in their homes; ...
