Bank Leumi Le-Israel B.M. (LUMI) Q3 2025 earnings summary

Executive summary

• Net profit for Q3 2025 was ILS/NIS 2.7 billion, with ROE at 16.3% and a 27% cost-income ratio, reflecting strong profitability and efficiency.

• Maintained high and stable performance, with cost efficiency, improved credit quality, and responsible loan growth.

• Board approved an increase in the internal CET1 capital target to 10.85% as of November 2025.

• Announced a combined dividend and buyback of ILS/NIS 2 billion, representing 75% of net profit.

• On track to meet 2025 and 2026 financial targets as per strategic plan.

Financial highlights

• Net income for Q3 2025 was ILS/NIS 2.7 billion; ROE at 16.3% for the quarter and 16.0% year-to-date.

• Cost-to-income ratio improved to 27% in Q3 2025, down from 31.1% in Q3 2024.

• Credit loss expenses dropped to 0.03% of gross loans, among the lowest in the sector.

• EPS increased nearly 20% year-over-year in Q3 2025.

• Book value per share rose 2.7% in the quarter, up 12.7% year-over-year to ILS 45.

Outlook and guidance

• On track to meet 2025 and 2026 financial targets, including net profit of NIS 9-11 billion per year, ROE of 15-16%, and credit growth of 8-10%.

• Capital return target set at a minimum of 50%, subject to regulatory approval.

• Expectation of Bank of Israel interest rate reduction; a 1% decrease would impact results by ILS 8 million, or 0.8% ROE.

• Cost-to-income ratio expected to be maintained at current strong levels through technology and cost control.

• Continued focus on responsible loan portfolio growth in corporate, commercial, and mortgage segments.