Mizrahi Tefahot Bank (MZTF) investor relations material

Executive summary

• Q2 net profit was NIS 1.428B, down 1.7% YoY, with ROE of 16.0%; H1 net profit was NIS 2.666B, down 2.8%, with ROE of 15.0%.

• Excluding the special tax and customer-benefit effects, Q2 net profit was NIS 1.592B and H1 net profit was NIS 3.032B; adjusted Q2 ROE was 17.7%.

Financial highlights

• Q2 total revenues were NIS 3.802B, up 0.3% YoY; financing revenues were NIS 3.183B, and commissions and other revenues were NIS 619M.

• Q2 operating and other expenses fell 2.7% to NIS 1.287B; profit before tax was NIS 2.425B.

• H1 total revenues were NIS 7.285B; net interest revenue was NIS 5.705B, commissions rose 5.3% to NIS 1.183B, and operating expenses declined 1.8% to NIS 2.615B.

• Q2 credit-loss provisions were NIS 90M, versus NIS 31M in Q1; H1 credit-loss expense was NIS 121M, versus NIS 159M.

• Total assets were NIS 580.8B, loans NIS 423.7B and public deposits NIS 474.4B at June 30, 2026.

Outlook and guidance

• The 2025–27 strategic-plan ROE target is 17%–18% annually; the 2026 target was revised to 15%–16% following the estimated special bank tax share.

• Management expects responsible credit growth to continue; the strategic plan targets a stronger business-banking position and increased credit share, particularly in business credit.

• Bank of Israel forecasts cited 4.0% Israeli GDP growth in 2026 and an average policy rate of 3.50%–3.75% in Q1 2027.