Mizrahi Tefahot Bank Ltd.

The bank reported Q3 2025 net profit of ILS 1.483 billion, versus ILS 4.26 billion for the first 9 months of 2025. Q3 return on equity was 17.6%, total revenues were ILS 3.830 billion, financing revenues from current operations were ILS 2.822 billion, operating and other expenses were ILS 1.310 billion, and the cost-income ratio was 34.2%. The ratio of provisions to loans was 0.04%, Tier 1 capital was 10.14%, total capital ratio was 13.04%, and equity was ILS 34 billion. Management said Q4 CPI contribution to financing revenues should be lower than Q3, Q4 credit growth is likely to slow versus Q3, and the bank will distribute 50% of Q3 profit as dividends.

Adi Shachaf characterized the quarter as “boring” in a positive sense, emphasizing that there were no material one-offs and that the bank kept executing its strategy in an unusually volatile Israeli environment. He highlighted strong, broad-based credit growth across mortgages, corporate, and middle market lending, and said this creates a “nice starting point for 2026.” He also stressed that the bank is balancing growth with risk management, liquidity, and capital discipline, while continuing to support clients affected by the war and Bank of Israel relief measures.

Menahem Aviv walked through the core numbers, including Q3 net profit of ILS 1.483 billion, ROE of 17.6%, financing revenues of ILS 2.822 billion, total revenues of ILS 3.830 billion, and expenses of ILS 1.310 billion. He pointed to a 34.2% cost-income ratio, a 0.04% provisions-to-loans ratio, and capital ratios of 10.14% Tier 1 and 13.04% total. Management also said the bank is paying 50% of Q3 profit as dividends, while Shachaf noted expenses should generally grow at a mid-single-digit rate and that capital is being used to support further credit growth.

Barclays asked about the Bank of Israel’s move to allow higher capital distributions, and management said it is comfortable with the current payout level because it wants to keep capital available for growth. On mortgages, management said competition remains very intense, but the bank has been able to defend market share. On expenses, management said a mid-single-digit growth rate is a reasonable normal run rate.