First International Bank of Israel Reports Financial Results for the First Quarter of 2025
Results Reflect continued growth and strong profitability while maintaining financial stability
TEL AVIV, Israel, May 14, 2025 /PRNewswire/ -- First International Bank of Israel(TASE: FIBI) one of Israel's major banking groups, today announced its results for the first quarter of the year.
Financial Highlights
- Net income of NIS 530 million in the first quarter of 2025 return on equity of 15.7%
- Pre-tax income grew by 4.1%, compared with the same quarter in the previous year and amounted to NIS 887 million
- Credit to the public, net, increased by 14.6% compared with the same period in the previous year and by 2% in the first quarter of the year
- Deposits by the public, net, increased by 12.4% compared with the same period in the previous year and by 2.9% in the first quarter of the year
- Customer's assets grew by 30% compared with the same period in the previous year and by 11.7% in the first quarter of the current year, reaching NIS 937 billion
- Equity attributed to shareholders in the Bank amounted to NIS 13,773 million, an increase of 2.6% compared to the end of 2024.
- The tier-1 shareholders' equity stood at 11.31%
- The Bank's Board of Directors decided to distribute a dividend for the first quarter of the year of NIS 212 million, representing a rate of 40% of the net income
Financial Results of the First Quarter of 2025
The First International Bank Group's net income amounted to NIS 530 million in the first quarter of 2025, a decrease of 6.9% compared with the same quarter last year. Return on equity reached 15.7%.
Pre-tax income grew by 4.1% compared with the same quarter last year and amounted to NIS 887 million. The increase in the effective tax rate compared with the same quarter last year, was primarily as a result of income recorded from prior years reported in the comparable period last year, amounting to NIS 49 million, and due to an increase in the special tax that is imposed on banks in Israel.
Credit to the public, net amounted to NIS 132 billion, an increase of 14.6% compared with last year and an increase of 2% in the first quarter of the year.
Deposits by the public amounted to approximately NIS 221 billion, an increase of 12.4% compared with last year and an increase of 2.9% in the first quarter.
The total customer assets portfolio increased by 30% compared with last year and by 11.7% in the first quarter of the year and amounted to NIS 937 billion.
Equity attributed to the shareholders of the Bank increased to NIS 13.8 billion, an increase of 2.6% compared to the end of 2024. The tier 1 shareholders' equity ratio stood at 11.31% - approximately 2.1% above the equity that is required by regulation, allowing for continued growth in the Group's activity.
Income on credit losses amounted to NIS 11 million in the first quarter of 2025, as compared with income of NIS 2 million in the same period in the previous year.
The quality of the credit portfolio - the NPL ratio (the balance of non-accruing debts or debts that are in arrears of 90 days or more to the balance of the credit to the public) improved and reached 0.46% at the end of the first quarter, compared to 0.6% in the same period in the previous year.
Operating and other expenses amounted to NIS 792 million, an increase of 8.3% compared with the same period in the previous year. The increase was primarily due to an increase in other expenses: capital market commisions, advertising and expenses relating to the departure of employees. The efficiency (cost income) ratio stood at 47.5%.
In light of the Supervisor of the Bank's guidance regarding "Capital planning and profits distribution policies", the Bank's Board of Directors decided to approve the distribution of a cash dividend in an amount of NIS 212 million to the shareholders, representing 40% of the net income. The Bank's Board of Directors will continue to discuss the implementation of the Bank's dividend distribution policy, pursuant to which the Bank will distribute up to 50% of the annual net income each year, in light of developments and their impact on the economy and on the Bank.
Management Comment
Eli Cohen, First International Bank's CEO commented: "We concluded a positive first quarter, continuing the growth trend that we have experienced in recent years. The results reflect our deepening activity in the capital markets and in credit, they reflect our focus on the unique needs of our customers, and our ability to provide excellent levels of service, even during uncertain times. This was achieved while maintaining the high quality of our credit portfolio, and a strong capital base and high liquidity.
"We have continued to expand our offerings of advanced products for both private and business customers during the quarter, and we have also strengthened our innovation and digital infrastructure.
"Since April, the Bank has been offering a new package of benefits and financial relief for customers, focused on evacuees and active duty/reserve soldiers, in which the Bank is granting significant benefits, amounting to approximately NIS 130 million a year.
"I am proud of our employees, who have shown commitment, professionalism and determination in order to deliver real value to our customers. I hope for the safe return of the hostages, the safety of the IDF soldiers and that the State of Israel will return to a path of peace and stability."
CONDENSED PRINCIPAL FINANCIAL INFORMATION AND PRINCIPAL EXECUTION INDICES | ||||||
Principal financial ratios | For the three months | For the year ended December 31, | ||||
2025 | 2024 | 2024 | ||||
Percent | ||||||
Principal execution indices | ||||||
Return on equity attributed to shareholders of the Bank(1) | 15.7 | 18.7 | 19.0 | |||
Return on average assets(1) | 0.84 | 1.03 | 1.02 | |||
Ratio of equity capital tier 1 | 11.31 | 11.78 | 11.31 | |||
Leverage ratio | 5.22 | 5.27 | 5.18 | |||
Liquidity coverage ratio(3) | 146 | 161 | 165 | |||
Net stable funding ratio | 131 | 150 | 140 | |||
Ratio of total income to average assets(1) | 2.6 | 2.9 | 2.9 | |||
Ratio of interest income, net to average assets (1) | 1.8 | 2.0 | 2.0 | |||
Ratio of fees to average assets (1) | 0.7 | 0.7 | 0.7 | |||
Efficiency ratio | 47.5 | 46.2 | 44.1 | |||
Credit quality indices | ||||||
Ratio of provision for credit losses to credit to the public | 1.22 | 1.38 | 1.25 | |||
Ratio of total provision for credit losses (2) to credit to the public | 1.36 | 1.53 | 1.38 | |||
Ratio of non-accruing debts or in arrears of 90 days or more to credit to the public | 0.46 | 0.60 | 0.53 | |||
Ratio of provision for credit losses to total non-accruing credit to the public | 275.1 | 236.1 | 244.6 | |||
Ratio of net write-offs to average total credit to the public (1) | (0.05) | (0.02) | (0.04) | |||
Ratio of income from credit losses to average total credit to the public (1) | (0.03) | (0.01) | (0.01) | |||
Principal data from the statement of income | For the three months | |||||
2025 | 2024 | |||||
NIS million | ||||||
Net profit attributed to shareholders of the Bank | 530 | 569 | ||||
Interest Income, net | 1,154 | 1,115 | ||||
Income from credit losses | (11) | (2) | ||||
Total non-Interest income | 514 | 466 | ||||
Of which: Fees | 425 | 365 | ||||
Total operating and other expenses | 792 | 731 | ||||
Of which: Salaries and related expenses | 453 | *447 | ||||
Primary and diluted net profit per share of NIS 0.05 par value (NIS) | 5.28 | 5.67 | ||||
Principal data from the balance sheet | 31.3.25 | 31.3.24 | 31.12.24 | |||
NIS million | ||||||
Total assets | 253,748 | 225,941 | 248,563 | |||
of which: Cash and deposits with banks | 77,342 | 76,731 | 77,175 | |||
Securities | 35,946 | 26,375 | 34,396 | |||
Credit to the public, net | 132,026 | 115,199 | 129,416 | |||
Total liabilities | 239,296 | 212,989 | 234,479 | |||
of which: Deposits from the public | 221,051 | 196,615 | 214,755 | |||
Deposits from banks | 1,637 | 3,586 | 2,508 | |||
Bonds and subordinated capital notes | 4,458 | 4,736 | 4,479 | |||
Capital attributed to the shareholders of the Bank | 13,773 | 12,355 | 13,430 | |||
Additional data | 31.3.25 | 31.3.24 | 31.12.24 | |||
Share price (0.01 NIS) | 18,720 | 15,440 | 17,940 | |||
Dividend per share (0.01 NIS) | 227 | 268 | 986 | |||
* Reclassified.
(1) Annualized.
(2) Including provision in respect of off-balance sheet credit instruments.
(3) The ratio is computed in respect of the three months ended at the end of the reporting period.
CONSOLIDATED STATEMENT OF INCOME | |||||||||||
(NIS million) | |||||||||||
For the three months | For the year Ended | ||||||||||
2025 | 2024 | 2024 | |||||||||
(unaudited) | (unaudited) | (audited) | |||||||||
Interest Income | 2,803 | 2,576 | 11,097 | ||||||||
Interest Expenses | 1,649 | 1,461 | 6,357 | ||||||||
Interest Income, net | 1,154 | 1,115 | 4,740 | ||||||||
Income from credit losses | (11) | (2) | (16) | ||||||||
Net Interest Income after Income from credit losses | 1,165 | 1,117 | 4,756 | ||||||||
Non- Interest Income | |||||||||||
Non-Interest financing income | 88 | 100 | 432 | ||||||||
Fees | 425 | 365 | 1,553 | ||||||||
Other income | 1 | 1 | 21 | ||||||||
Total non- Interest income | 514 | 466 | 2,006 | ||||||||
Operating and other expenses | |||||||||||
Salaries and related expenses | 453 | *447 | 1,739 | ||||||||
Maintenance and depreciation of premises and equipment | 84 | *82 | 359 | ||||||||
Amortizations and impairment of intangible assets | 35 | 31 | 134 | ||||||||
Other expenses | 220 | 171 | 745 | ||||||||
Total operating and other expenses | 792 | 731 | 2,977 | ||||||||
Profit before taxes | 887 | 852 | 3,785 | ||||||||
Provision for taxes on profit | 354 | 279 | 1,383 | ||||||||
Profit after taxes | 533 | 573 | 2,402 | ||||||||
The bank's share in profit of equity-basis investee, after taxes | 22 | 18 | 74 | ||||||||
Net profit: | |||||||||||
Before attribution to non–controlling interests | 555 | 591 | 2,476 | ||||||||
Attributed to non–controlling interests | (25) | (22) | (105) | ||||||||
Attributed to shareholders of the Bank | 530 | 569 | 2,371 | ||||||||
NIS | |||||||||||
Primary profit per share attributed to the shareholders | |||||||||||
Net profit per share of NIS 0.05 par value | 5.28 | 5.67 | 23.63 | ||||||||
Diluted profit per share attributed to the shareholders | |||||||||||
Net profit per share of NIS 0.05 par value | 5.28 | 5.67 | 23.63 | ||||||||
* Reclassified.
The notes to the financial statements are an integral part thereof.
STATEMENT OF COMPREHENSIVE INCOME | ||||||
(NIS million) | ||||||
For the three months | For the year Ended | |||||
2025 | 2024 | 2024 | ||||
(unaudited) | (unaudited) | (audited) | ||||
Net profit before attribution to non–controlling interests | 555 | 591 | 2,476 | |||
Net profit attributed to non–controlling interests | (25) | (22) | (105) | |||
Net profit attributed to the shareholders of the Bank | 530 | 569 | 2,371 | |||
Other comprehensive income (loss) before taxes: | ||||||
Adjustments of available for sale bonds to fair value, net | 38 | (44) | 31 | |||
Adjustments of liabilities in respect of employee benefits(1) | 26 | 11 | (60) | |||
Other comprehensive income (loss) before taxes | 64 | (33) | (29) | |||
Related tax effect | (24) | 17 | 9 | |||
Other comprehensive income (loss) before attribution to non–controlling interests, after taxes | 40 | (16) | (20) | |||
Less other comprehensive income attributed to non–controlling interests | - | - | 3 | |||
Other comprehensive income (loss) attributed to the shareholders of the Bank, after taxes | 40 | (16) | (23) | |||
Comprehensive income before attribution to non–controlling interests | 595 | 575 | 2,456 | |||
Comprehensive income attributed to non–controlling interests | (25) | (22) | (108) | |||
Comprehensive income attributed to the shareholders of the Bank | 570 | 553 | 2,348 | |||
(1) Mostly reflects adjustments in respect of actuarial assessments as of the end of the period regarding defined benefits pension plans, of amounts recorded in the past in other comprehensive income.
CONSOLIDATED BALANCE SHEET | ||||||
(NIS million) | ||||||
March 31, | December 31, | |||||
2025 | 2024 | 2024 | ||||
(unaudited) | (unaudited) | (audited) | ||||
Assets | ||||||
Cash and deposits with banks | 77,342 | 76,731 | 77,175 | |||
Securities | 35,946 | 26,375 | 34,396 | |||
Securities which were borrowed | 71 | 2 | 70 | |||
Credit to the public | 133,660 | 116,816 | 131,050 | |||
Provision for Credit losses | (1,634) | (1,617) | (1,634) | |||
Credit to the public, net | 132,026 | 115,199 | 129,416 | |||
Credit to the government | 1,504 | 965 | 1,496 | |||
Investment in investee company | 866 | 800 | 842 | |||
Premises and equipment | 858 | 867 | 867 | |||
Intangible assets | 356 | 325 | 363 | |||
Assets in respect of derivative instruments | 3,376 | 3,324 | 2,565 | |||
Other assets(2) | 1,403 | 1,353 | 1,373 | |||
Total assets | 253,748 | 225,941 | 248,563 | |||
Liabilities and Shareholders' Equity | ||||||
Deposits from the public | 221,051 | 196,615 | 214,755 | |||
Deposits from banks | 1,637 | 3,586 | 2,508 | |||
Deposits from the Government | 483 | 710 | 2,540 | |||
Securities lent or sold under agreements to repurchase | 3,813 | - | 2,304 | |||
Bonds and subordinated capital notes | 4,458 | 4,736 | 4,479 | |||
Liabilities in respect of derivative instruments | 3,158 | 3,085 | 2,729 | |||
Other liabilities(1)(3) | 4,696 | 4,257 | 5,164 | |||
Total liabilities | 239,296 | 212,989 | 234,479 | |||
Capital attributed to the shareholders of the Bank | 13,773 | 12,355 | 13,430 | |||
Non-controlling interests | 679 | 597 | 654 | |||
Total equity | 14,452 | 12,952 | 14,084 | |||
Total liabilities and shareholders' equity | 253,748 | 225,941 | 248,563 | |||
(1) Of which: provision for credit losses in respect of off-balance sheet credit instruments in the amount of NIS 184 million and NIS 170 million and NIS 177 million as of 31.3.25, 31.3.24 and 31.12.24, respectively.
(2) Of which: other assets measured at fair value in the amount of NIS 21 million and NIS 5 million and NIS 1 million as of 31.3.25, 31.3.24 and 31.12.24, respectively.
(3) Of which: other liabilities measured at fair value in the amount of NIS 21 million and NIS 5 million and NIS 11 million as of 31.3.25, 31.3.24 and 31.12.24, respectively.
STATEMENT OF CHANGES IN EQUITY | ||||||||||||||||
(NIS million) | ||||||||||||||||
For the three months ended March 31, 2025 (unaudited) | ||||||||||||||||
Share capital and premium (1) | Capital reserves from benefit due to share-based payment transactions | Total capital and capital reserves | Accumulated other comprehensive income (loss) | Retained earnings (2) | Total share- holders' equity | Non- controlling interests | Total equity | |||||||||
Balance as of December 31, 2024 (audited) | 927 | - | 927 | (178) | 12,681 | 13,430 | 654 | 14,084 | ||||||||
Net profit for the period | - | - | - | - | 530 | 530 | 25 | 555 | ||||||||
Dividend | - | - | - | - | (228) | (228) | - | (228) | ||||||||
Benefit due to share-based payment transactions | - | 1 | 1 | - | - | 1 | - | 1 | ||||||||
Other comprehensive income, after tax effect | - | - | - | 40 | - | 40 | - | 40 | ||||||||
Balance as of March 31, 2025 | 927 | 1 | 928 | (138) | 12,983 | 13,773 | 679 | 14,452 | ||||||||
For the three months ended March 31, 2024 (unaudited) | ||||||||||||||||
Share capital and premium (1) | Accumulated other comprehensive loss | Retained earnings (2) | Total share- holders' equity | Non- controlling interests | Total equity | |||||||||||
Balance as of December 31, 2023 (audited) | 927 | (155) | 11,299 | 12,071 | 575 | 12,646 | ||||||||||
Net profit for the period | - | - | 569 | 569 | 22 | 591 | ||||||||||
Dividend | - | - | (269) | (269) | - | (269) | ||||||||||
Other comprehensive loss, after tax effect | - | (16) | - | (16) | - | (16) | ||||||||||
Balance as of March 31, 2024 | 927 | (171) | 11,599 | 12,355 | 597 | 12,952 | ||||||||||
For year ended December 31, 2024 (audited) | ||||||||||||||||
Share capital and premium (1) | Accumulated other comprehensive loss | Retained earnings (2) | Total share-holders' equity | Non- controlling interests | Total equity | |||||||||||
Balance as of December 31, 2023 | 927 | (155) | 11,299 | 12,071 | 575 | 12,646 | ||||||||||
Net profit for the year | - | - | 2,371 | 2,371 | 105 | 2,476 | ||||||||||
Dividend | - | - | (989) | (989) | (29) | (1,018) | ||||||||||
Other comprehensive income (loss), after tax effect | - | (23) | - | (23) | 3 | (20) | ||||||||||
Balance as of December 31, 2024 | 927 | (178) | 12,681 | 13,430 | 654 | 14,084 | ||||||||||
(1) Including share premium of NIS 313 million (as from 1992 onwards).
(2) Including an amount of NIS 2,391 million which cannot be distributed as dividend.
Contact:
Dafna Zucker
First International Bank of Israel
zucker.d@fibi.co.i
+972-3-519-6224
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SOURCE First International Bank of Israel