Revenue Performance
For the full fiscal year 2025, Bank Leumi reported net interest income of NIS 16.9 billion, representing a 2.1% increase year-over-year. This top-line expansion was primarily driven by robust volume growth across the lending portfolio, which effectively offset margin compression and a reduced inflation contribution. Total fee and commission income advanced 7% year-over-year to NIS 4.1 billion, supported by stronger capital market activity. During the fourth quarter of 2025, net interest income remained flat compared to the prior year, while total non-interest income experienced a 12% year-over-year contraction despite sequential quarterly improvement in fees.
Profitability and Margins
The bank generated a record full-year net income of NIS 10.3 billion, a 4.7% increase from NIS 9.8 billion in the previous year. Fourth-quarter net income also rose 4% year-over-year to reach NIS 2.55 billion. Return on equity remained strong at 15.8% for the full year and 15.1% for the fourth quarter, experiencing a slight year-over-year compression attributed to a substantial capital surplus rather than operational weakness. The bank demonstrated ongoing cost discipline, improving its annual efficiency ratio to 29.3% from 29.9% in 2024, aided by the accelerated implementation of cloud-based technology and artificial intelligence initiatives.
Operational Highlights
Bank Leumi achieved significant expansion in its credit portfolio, which grew by 14.1% year-over-year to NIS 520 billion, significantly outpacing its baseline strategic growth targets. This expansion was strategically concentrated, with corporate lending surging 20.5%, commercial credit expanding 6.2%, and the mortgage portfolio growing 6.9%. Asset quality indicators remained highly favorable, as the non-performing loan ratio declined to 0.40% at year-end, down from 0.50% the prior year, alongside a low annual credit loss expense rate of 0.09%. The bank concluded the year with a highly resilient balance sheet, maintaining a Common Equity Tier 1 capital ratio of 12.05% and a robust liquidity coverage ratio of 127%.