Bank Leumi Le-Israel B.M. (LUMI) Q4 2024 earnings summary

Executive summary

• Achieved record net income of NIS 9.8 billion in 2024, with ROE of 16.9%, driven by growth in target segments, robust credit quality, and operational efficiency despite challenging macroeconomic and geopolitical conditions.

• Maintained a best-in-class cost-to-income ratio of 29.9%, reflecting stable expenses and technology investments.

• Returned NIS 3.9–4 billion to shareholders in 2024 via dividends and buybacks, with a 40% payout ratio.

• Announced 2025-2026 financial targets: ROE of 15-16%, annual net profit of NIS 9-11 billion, credit growth of 8-10%, and capital return of at least 50%.

• Implemented strategic relief programs and support initiatives in response to the war, with costs of NIS 526 million.

Financial highlights

• Net income for 2024 was NIS 9.8 billion, up 40% year-over-year; Q4 net income was NIS 2.45 billion.

• ROE reached 16.9% for the year and 16.2% in Q4.

• Cost-to-income ratio improved to 29.9% from 32.6% in 2023.

• Net interest income for 2024 was NIS 16.5 billion, up 3.2% year-over-year; non-interest income rose 27.4% to NIS 6.6 billion.

• Book value per share increased by 14.6% year-over-year.

Outlook and guidance

• Financial targets for 2025-2026: annual net profit of NIS 9-11 billion, ROE of 15-16%, credit growth of 8-10%, and capital return of at least 50%.

• Management expects Israeli GDP growth of 3-4% in 2025, with continued rebound in domestic consumption and investment.

• Confident in maintaining strong ROE even if interest rates and inflation decrease.