Bank Leumi Le-Israel B.M. (LUMI) Q2 2025 earnings summary

Executive summary

• Net income for Q2 2025 reached NIS 2.6 billion, a 15% increase year-over-year, with ROE at 16.2% and strong profitability.

• Maintained a best-in-class cost-income (efficiency) ratio of 26.9%, among the best globally.

• Dividend payout increased to 50% of net income, totaling NIS 1.3 billion, split between cash and share buyback.

• Continued growth in net loans and a diversified deposit base, with robust credit quality and low NPLs.

• Shareholders' equity increased 12.2% year-over-year to NIS 65.5 billion.

Financial highlights

• Q2 2025 net income was NIS 2,610 million; H1 2025 net income reached NIS 5,013 million.

• Net interest income for Q2 2025 was NIS 4,540 million, up 3.7% year-over-year; NIM at 2.53%.

• Non-interest income rose 5.9% to NIS 1,446 million compared to Q2 2024.

• Net loan growth was 5.7% quarter-over-quarter and 8.6% year-over-year.

• Loan loss expenses increased to NIS 223 million in Q2 2025.

Outlook and guidance

• Economic recovery in Israel expected to continue through 2025-26, with strong labor market and moderate government debt increase.

• Targeting a minimum 50% payout ratio for 2025-26, subject to regulatory approval.

• Focus on responsible growth in corporate, commercial, and mortgage segments.

• Continued commitment to maintaining high loan portfolio quality and low NPL ratio.